STEP has reported that the Government has published more details of its proposed reforms to the charging system of adult social care in England, including a lifetime cap on the charges for personal care.
What are the proposed reforms to the charging system of adult social care in England?
The overall plan was first announced in September 2021 and sets a £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime from October 2023 but costs accrued before October 2023 will not count towards the cap.
This does not cover the ordinary daily living costs (accommodation, food and utility bills) which will be payable even after they reach the cap. These costs will have to be paid whether the person is in a care home or not and will be set at £200 a week.
The upper threshold amount of capital assets above which people lose all financial support from their local authority will rise from £23,500 and to £100,000. The effect is that people with less than £100,000 of chargeable assets will never contribute more than 20 per cent of these assets per year, irrespective of the circumstances or setting in which an individual receives care.
The lower threshold below which people will not have to pay anything for their care from their assets, will increase to £20,000 from £14,250.
People with assets between the upper and lower threshold will have to pay a means-tested contribution from their assets, calculated by assuming an income of £1 per week for every £250 of capital between the two limits.
The proposal is that everyone will have a care account that will be maintained by the local authority and will keep track of their progress towards the cap.
What happens next?
The proposal must now be approved by parliament. If enacted, regulations and final guidance will be published in early 2022.
Find out more
For further information about the charging system of adult social care in England, please contact one of our dedicate vulnerable clients solicitors who will be happy to help.
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