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. 109