Paying for Social Care: Big changes – but not yet…

The announcement of the Government’s plan for reforming social care is a big political news story.  But the costs of paying for care – and getting the care you or your loved one needs – is a very human story which affects increasing numbers of us.

Stephanie Johnson Senior Associate Solicitor and Head of our Health and Social Care Team provides an update …

The plan reintroduces the 2011 proposal of a cap on the amount of care costs a person will have to pay for “personal care”.  Whilst the plan is to use legislation previously drafted but never made into law we still need a lot more detail (promised for later in the year) to fully understand how the new regime will work.  

Beyond the headline, the cap is not all it may seem.

At present, anyone with assets worth more than £23,250 has to fully fund their social care unless their assets in time fall below this threshold.  There is no upper cap on how much you pay.

People with assets of between £14,250 and £23,250 still have to pay a contribution from their capital. 

This is in addition to contributions assessed from income.

The Government propose that the amount someone must pay for their care over their lifetime is capped at £86,000.  However, it appears the cap:

• Does not include daily living costs
• Does not include the value of any care provided to you for free, eg by relatives
• Does not include any costs for care over and above the “eligible needs” the Local Authority has assessed you have (you may disagree with their assessment of the amount of care you need and be funding a wider package of care)

There is also a “floor”.  If your assets do not exceed £20,000 you will not have to make any contributions from your capital and if you have less than £100,000 then you will only pay a contribution.  Income contributions will stop when you reach the cap.

The daily living costs you will fund will not count towards the cap and you will still have to meet these costs after you reach the cap.

How much will these daily living costs be?  If you are in residential care they will need to be apportioned out from the care costs.  Previously a flat rate was proposed and the Health Secretary recently suggested on Radio 4’s “Today” programme that the costs could be met from the state pension.  But will everyone pay the same rate or will it depend on your personal circumstances or living/housing costs where you live?  For some, these costs may be more than it would cost them if they were living at home and had no care needs.  

And for now…

Perhaps the most important thing to bear in mind now is that the new scheme is planned to take effect from October 2023 and it is only costs incurred from that date which will count towards the cap.  So if you are currently paying for care you are still subject to the current rules. Financial assessment for care funding is not always straightforward, especially where you jointly own personal or business assets or where you share your home with other people.  Dealing with care and financial assessments can be emotionally fraught. 

Stephanie and her colleagues in our Private Client Team can advise you on the detail of the rules and help you challenge Local Authority decisions on care and financial assessments. 

Stephanie can also advise on eligibility for full NHS funding (NHS Continuing Healthcare), support you through the assessment process and deal with appealing eligibility decisions.

To contact Stephanie please call her on 01228 516666 or click here to send here an email.