Care Costs Cap Could Be Up To £60,000
Tuesday 24th of January 2012
Under new Government proposals, the maximum amount elderly people might have to pay for their care in the future could be capped at £60,000 – almost double the £35,000 proposed in July 2011's Dilnot report. The recommendations, which come from a Department of Health working group, also include telling adults of working age to make provision for their care in later life by releasing equity from their homes or buying financial products such as care insurance.
People will also be 'nudged' to protect themselves against future costs through national marketing campaigns that encourage them to buy a home that can be sold to cover care costs, or promote pension schemes. The proposed cap would enable financial services providers to bring new products to the market to meet these needs.
At the moment, there is no limit on the amount people may have to pay for their own care. Around 20,000 homes are sold every year to cover residential care home fees and 10% of older people face care bills of more than £100,000. The proposed new system would therefore represent a radical shake up by capping the amount people have to pay themselves.
Ministers could make a decision on the proposals during cross-party talks on social care reform that are due to start this week, with a White Paper on the subject expected in April 2012. A YouGov poll recently commissioned by the charity Age UK found that three quarters of 1,700 adults surveyed are in favour of a cap on care costs.
Source: Daily Telegraph and BBC
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