Cap on cost of care for the elderly

The government has recently announced that social care costs which have to be paid by the elderly in England will be capped at £75,000.

There will also be an increase from £23,250 to £123,000 before people are obliged to contribute to the costs of basic nursing care, and this sum also includes the value of their home.

Although this is a significant increase and is likely to benefit many, it is important to note the following:

– less than a fifth of people face costs in excess of £75,000, meaning the majority of people will still have to pay all of their bill;

– the cap will only include services that are available at the normal council cost, so any spending above what the local council would have paid for will not count towards the cap, leaving the individual to pick up the excess;

– only those with needs classed as severe or substantial will be entitled to help – any spending before that level of need is reached will not count towards the £75,000 cap; and

– people will still face paying so-called accommodation costs – food, bills and rent.

These changes are due to come into effect in April 2017. If you want to plan for the future and need advice as to how this may affect you please contact Nisha Laxman on 01784 462511.