At last the Government has announced it’s proposals for Health and Social Care Reform.
They introduce a lifetime funding cap of £86000 for any individual requiring personal care. It also proposes that you will be liable to meet the funding in full if your total assets exceed £100000
The new means test will start in October 2023
If your total assets fall between £20000 and £100000 you will be eligible for some financial support but if they are below £20000 then you will no longer pay for your support from your assets. You may however be expected to contribute to the costs from your income.
One important thing to bear in mind is that the cap does not include ‘hotel costs’ such as accommodation and food which means you are likely to reach double the £86000 limit from your available assets . If you decide on a more expensive care home then the difference will have to be found personally and not contribute towards the cap.
To meet the cost of these proposals the Government is to introduce a Health and Social Care Levy of an extra 1.25% on all NIC contributions paid by Employers, Employees and the Self-employed and will include working pensioners. The dividend rate of tax is also to be increased by 1.25%
The proposals have yet to be approved in detail by Parliament
Perhaps this is something we should all care about!