Care Home Fees cost cap ‘deal reached’ between David Cameron and Nick CleggPosted on:
Pensioners will pay up to £75,000 but no more for their long-term care in old age under reforms agreed by David Cameron and Nick Clegg. The Telegraph’s Tim Ross explains what it will mean.
Under the plan, which could be announced next week, elderly and disabled adults will be given state protection against unlimited care home fees for the first time.
But it will not be implemented before 2015 and will still require individuals to pay care bills up to the level of the cap.
It may make little difference to many families, it is feared.
Pensioners will be told to buy private insurance to cover them up to the new limit, expected to be between £65,000 and £75,000. Individuals could be offered the choice of taking a lower lump sum when they retire, and converting the rest into care protection insurance.
Currently, one in 10 adults faces a lifetime bill of more than £100,000 for care. Only the poorest, with total assets worth less than £23,000, receive assistance from the state and an estimated 40,000 people have to sell their homes each year to pay for care.
The threshold for means-tested support is also expected to be increased to £100,000.