insideKENT Magazine Issue 66 - September 2017 | Page 109
HEALTH+WELLNESS
WHAT IS
THE FUTURE FOR
CARE COSTS?
Stephen Horscroft
Some of the biggest changes in funding social care are in the pipeline.
Stephen Horscroft of law firm Cripps explains the issues.
The Care Act 2014 represents the most significant reform of the law
governing care and support in more than 60 years. Its aim is to give
individuals greater independence and control over their lives and the
care and support that they receive.
The Act is now largely in force but provisions which impose a cap on
social care costs have yet to be implemented.
Between 1st April 2015 and 31st March 2016, 873,000 people received
long-term adult social care provided by local authorities in England
and 245,000 people received short-term care.
Eligibility for financial assistance from the state for social care is currently
means-tested. People with assets worth over £23,250 have to pay the
full cost of their care. The value of a person’s home is taken into account
when a person is living in a residential care home, but not when
receiving care in their own home.
This forces many people to sell their homes in order to pay for their
residential care costs and can lead to people paying thousands of
pounds for their care, depleting their assets which they might otherwise
have left to their families.
The government originally pledged to cap the lifetime costs of a person’s
care at £72,000 from April 2016. The implementation date was then
delayed until 2020. However, the outcome of the general election on
8th June 2017 has led to further uncertainty.
motor neurone disease or multiple sclerosis, who are cared for at home
and may leave behind young families who need a home after their
parent’s death.
In response to the reaction to the manifesto proposals, Theresa May
then announced there would be an ‘absolute limit’ on care costs but
said she would give no more details until after the election.
Since the election, and stung by the reaction to its manifesto, the
government has not pursued its proposals in the Queen’s Speech.
Instead, it simply said that there will be consultation about social care
reform.
It is highly likely that the consultation will propose changes to the
provision of financial assistance for social care and the amounts that
families will ultimately have to pay. Indications from government
sources suggest that the level of any cap and/or the cut off point for
financial assistance will be part of the consultation but with the
uncertainty caused by the hung parliament and the priority given to
negotiating Brexit, it is difficult to know exactly what might happen
and when.
For more advice on funding social care or planning for the future,
please contact Stephen Horscroft on 01892 506 341
or [email protected].
The Conservative manifesto appeared to scrap the notion of a ‘cap’ on
social care costs but proposed changes to the eligibility test for financial
assistance with those costs. Anyone with assets worth over £100,000
would be responsible for paying their own care costs until their assets
reduce below that amount. The value of a person’s home would be
included in their assets when assessing eligibility for financial assistance.
This would apply for both care provided in their own home (the big
change) and for residential care, but no one would be forced to sell
their home to fund care, as payment could be deferred until after the
person’s death.
This provoked a lot of negative comment about a ‘dementia tax’ because
of its potential impact on people who are cared for at home, like many
who suffer from dementia but do not need nursing care. It would also
adversely affect younger people with degenerative diseases, such as
About Cripps
www.cripps.co.uk
@crippslaw
Cripps is a key regional law firm
serving clients nationally and
internationally from offices in Kent
and London. Recognised
countrywide for both its commercial
and private client work, Cripps is
listed as a top law firm by
eprivateclient. The firm focuses on
wealthier families, entrepreneurial
businesses and the real estate sector.
Find out more at cripps.co.uk
This article gives examples and is intended for general guidance only.
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