The Future - April 2020
There had been some proposed plans in April 2016, but unfortunately the Government have decided to postpone this until 2020. We don’t have all the information at the moment, but there appear to be three main changes to the information found elsewhere on this website:
1. The higher threshold of £23,250 looks likely to increase to £118,000.
2. The lower threshold of £14,250 looks likely to increase to £17,000.
3. There is going to be a cap on care fees.
It has been widely reported that there will be a cap on these fees after April 2020 at £72,000 per person. So no matter how much money you have, you will not pay more than £72,000 for your care. So, at first glance, this could be quite a saving if you require long term care. Unfortunately, there is a catch to this cap. The cap only applies to care costs. Of the average £604 per week cost of residential care in England, approximately £473 per week is the care portion. The remainder is living costs – accommodation and so on. Only the care portion counts towards the cap. Therefore, on average, self-funded people will be in care for almost three years before they receive Local Authority support with the costs. As an interesting side note, a recent BUPA led paper found that on average people stayed in a care home for just over 2 years before they died... which would mean that they died before they benefitted from the new cap.