Fairer Care Funding

The Dilnot Report came out in July 2011 and received a lot of praise for its political solutions to the problems of care funding. 

At present, if you need care you are primarily responsible for funding this out of your income.  If this is insufficient, your capital will be used down to £14,250.

The Report has recommended that the limit for the ‘cost of care’ be capped at £35,000.  In other words, once you have paid £35,000 out of your own capital the State will provide for the funding of this aspect of your care.

I have two concerns here:

1. The question of affordability.  It is estimated that if all the proposals are carried forward the immediate cost to the tax payer will be £2 billion.  As we are an ever ageing population this figure can only rise.
2. What is meant by “cost of care”?  The cap does not apply to the hotel element of care costs.  This can be far more expensive than the cost of nursing care covered by the £35,000 cap.  In essence, Dilnot’s proposals would only fully work if you chose the most basic of care available.  If you were looking at care provided in a private care home you will continue to pay a proportion of this yourself which means that your capital will continue to be used over and above the £35,000 cap.

The Government’s response to the Report is that a White Paper is due by Spring 2012.  Andrew Lansley’s response in the Commons was inevitable bearing in mind the increased costs of the proposals.  He said he would be using “Andrew Dilnot’s Report as a basis for engagement and as a key part of the broader picture”.  Commentators have said that this is a classic example of expectation deflation.

Despite Dilnot’s noble efforts, if you want to protect assets from the cost of care you need to take some basic steps yourself and we can help with this.

For further information or advice relating to this repor contact Jeremy Groeger Wilson on 01689 887847 or email him at Jeremy.Groeger-Wilson@cwj.co.uk