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Care Home Fees Reform Proposals

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Care home fees can be a huge concern for many people How will the cost be met? What will this leave in my estate to pass down to my loved ones? Presently, the costs for care are met either by the individual, or on a means-tested basis, potentially meaning a depletion of personal assets. This often causes great concern. This concern has been hitting the headlines recently, as a consequence of the Dilnot report. This report recommends each person should cover a contribution, with a cap, towards care costs during their lifetime. The suggested cap in the report is between a range of figures, with £35,000 deemed as appropriate. The state thereafter picking up the tab. If these recommendations are followed, it could mean that pensioners no longer have to sell their homes to meet the costs of care, which can exceed £30,000 a year. This suggested cap, however, only relates to the costs of care and residents would still face bills relating to the provision of food, heating and accommodation - sometimes called 'hotel cost'. Again the suggestion is that these contributions are also capped at between £7,000 and £10,000 a year. The proposals would leave the Treasury having to find the funds to meet the costs and could mean individuals will need to take out insurance, or use their savings, to fund their part of the bills. Until the proposals are confirmed one way or another, with a white paper anticipated next year for implementation in 2013, the future looks uncertain. We will keep you updated - watch this space. • For additional information please contact: Susan Young of Gepp & Sons. The above is not legal advice; it is intended to provide information of general interest about current legal issues.