Care Home Funding Advocates: Budget Review 2013: Limit on cost of care for elderly set at £72,000Posted on:
Care Home Funding Advocates can confirm that plans to impose a ceiling on the sums elderly and disabled people have to pay for social care were confirmed in Wednesday’s Budget. But exactly how it will be calculated that an individual has paid out the maximum of £72,000, remains unclear.
In the context of his Budget for “an aspiration nation”, the chancellor said this meant “helping those who want to keep their homes instead of having to sell it to pay for the costs of social care”.
That, he said, was what the blueprint, drawn up by economist Andrew Dilnot, would deliver, protecting savings above £72,000.
The threshold up to which people are entitled to means-tested help with care costs would also be raised from just over £23,000 to £118,000. The £72,000 ceiling does not include “hotel” costs such as food and accommodation.
Mr Osborne said that for decades politicians had “talked of doing something for savers and those who have to sell their homes to pay for care; and yet nothing has been done. Until this week.”
However, it remains unclear whether payments at the level of an average local authority home only will count towards the £72,000, meaning those paying higher, private care home fees may take longer to reach it.
More details are expected when the bill to implement it is published this year.
Although the decision to introduce the reform earlier than expected is a positive move, since this government came to power, in real terms £700m has been cut from social care spending, mostly as a consequence of the slashing of local authorities’ budgets at a time when need is rising due to our ageing population.
Care Home Funding Advocates considers the Government must urgently address the spiraling crisis in social care by ensuring that every older person gets the help that they need when they need it.