Autumn statement - cap on care

Jeremy Hunt recently announced in the Autumn Statement (17 November 2022) that the Government is delaying the cap on care costs, in order to save the Government money.

What is the cap on care costs?

The reform was first outlined by Boris Johnson in September 2021 with the promise that in October 2023, social care costs were supposed to be capped in England, so the total amount a person would pay in social care costs for their entire life would be £86,000. The cap would be implemented for adults of all ages, without any exemptions. This measure has been delayed by the Government and now is expected to come into force in 2025.

This is yet another blow to the care system and whilst the new measure only covered personal care expenses and not their daily living costs, for example, rent food and utility bills, it will mean that a lot of people will miss out on the cap and they will have to pay out more for their care.  

The reason why the Government had not intended for daily living costs to be included in the cap, was to ensure people that who receive care in a care home and those who receive care in their own home, receive the same amount of financial assistance. With many families adjusting to the new cost of living, this is a damaging blow to the care system, where many families will be struggling to deal with the cost of care.

The knock-on effect

The delay also means that more families will have to sell their properties to pay for care and that ultimately families will receive less inheritance as assets will be drained down by the expense of the ongoing care fees.

Our current care system which will be in place for the next few years means that if you have assets and savings worth over £23,250 then you have to pay for all of your care needs. If your assets fall between £23,250 and £14,250 then the Local Authorities will pay a contribution to your care fees, the amount depends on the type of care you receive and your income.  If your assets are below £14,250 the Local Authorities will step in and pay for all associated care needs.

If you would like any advice regarding care fees, then please contact one of our care specialists. I am based in our Colchester office and can be contacted 01206 217609 or [email protected].