Care home
costs
It has been claimed that the
government’s long-awaited overhaul
of the social care system in England –
including the introduction of a cap on
bills – does not go far or fast enough
to address the potential problem that
thousands of families are facing.
Under the current system in England
anyone with assets, including their
home, worth more than £23,500 gets no
financial support if they have to go into a
care home.
The average cost of a room in a care
home now stands at just over £28,000
a year but for those needing more
intensive nursing care, annual bills
regularly reach well over £40,000.
As a consequence millions of younger
people who are currently relying on an
inheritance to fund their own retirement
could be facing serious financial
problems if they do not make alternative
plans urgently. It is reported that three
out of four people whose parents go
into a care home lose all or most of their
inheritance.
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Thus, younger generations could be in
for a long wait if they’re banking on an
inheritance to fund their own retirement.
People should be making their own
retirement plans rather than factoring
in property and wealth that could be
whittled away by the cost of care and
inheritance tax.
Sweeping reforms of the social care
system, based on the landmark
recommendations of a commission
chaired by the economist Andrew Dilnot,
are currently going through Parliament.
They will cap the amount people should
have to pay for care at £72,000 – more
than twice the level originally envisaged.
This does not take into account what
people in care will have to pay for
accommodation nor any money they
have paid for personal care before they
were deemed frail enough for social
services to step in.
Startling figures also estimate that only
one in eight elderly people will ever
qualify for the cap.