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MSE News: £35,000 elderly care cost cap urged

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MSE News: £35,000 elderly care cost cap urged

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This is the discussion thread for the following MSE News Story:

"The Dilnot commission urges the Government to cap lifetime contributions to social care costs at £35,000"

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  • wakeupalarmwakeupalarm Forumite
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    "Dilnot says decisions on how to fund the reforms were "political" and up to the Government. But one of the commission's suggestions includes a specific tax increase for those in retirement."

    They are talking about increasing taxes on pensioners to pay for the cost of this cap.

    Surely a cap would only benefit those who are currently paying more than £35,000 and taxes would hit all pensioners including the lower earning pensioners?

    Isnt' this another transfer of cost from rich to poor?
  • ArthurianArthurian Forumite
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    The cap will not include so-called "hotel costs" for food and accommodation, and as far as I know (please correct me if I'm wrong) the cost of specific nursing needs is supposed to be paid by the NHS. So this cap would be £35,000 care costs after paying for food, accommodation and nursing costs? Or is it supposed to be £35,000 including food, accommodation and nursing?
  • roddydogsroddydogs Forumite
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    So whose going to pay?
  • ErrataErrata Forumite
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    It's suggested that the cost of a new arrangement will equal the amount the gov wishes to save through the proposed public sector pension changes.
    Taxing 9 in 10 pensioners to fund the care of the 1 in 10 that will need it (at the moment) would be quite a stunt to pull off.
    .................:)....I'm smiling because I have no idea what's going on ...:)
  • DeepfatfriarDeepfatfriar Forumite
    97 posts
    I agree with the above.

    I am somewhat confused by the whole.

    Does it mean in effect we have to pay up to £35,000 for what is in effect an insurance policy ?

    To me it looks like Labour's "death tax" in another guise.

    Strange how we can just afford another £38 Million for Ethiopia ????
  • ErrataErrata Forumite
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    I haven't looked at the stats for a while now, but the average length of stay in care home was 18 months, which unsurprisingly is about £35k in most parts of the country. Even if the average goes up to 2 years the gov's contribution excludes the hotel costs the resident will continue to pay. (If I've understood it all :o)
    .................:)....I'm smiling because I have no idea what's going on ...:)
  • SobraonSobraon Forumite
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    It's a ruse to introduce NI charges on pension and investment income. The ConDems will demand this tax change in the name of "fairness".

    Then, after people from England have paid their 35K, councils will require people to move from reasonable private care homes to council run/funded nursing/care homes for which they will charge the full £10K hotel costs.

    Judging by the council homes I have been into (admittedly only E.Mods and Yorks), I wouldn't wish my worst enemy to be incarcerated in one. And, if you have still got your marbles when you go in it would be, again in my opinion, a living hell.

    I suspect that the parliamentary nursing home is somewhat plusher - house of lords anyone?
  • ArthurianArthurian Forumite
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    As far as I can figure out, and I may well be wrong, elderly residents might get registered nursing care costs contribution of £108.70 a week, plus the higher rate attendance allowance of £73.60 a week = £9479.60 a year. I assume they still get their state pension, too, which could eventually be £140 a week = a further £7280 a year. Total = £16,759.60 a year. Would this make up part of the £35k cap, or do they mean £35,000 + £16,759.60 = £51,759.60?
  • ArremArrem Forumite
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    I'd just be grateful if someone would tell us in words of one syllable what is going to be required of us if we get to the point in our lives where we need to be in a residential home or for nursing care.
    I started to read all the options and within a minute was in serious risk of disappearing in a flurry of total confusion. Nothing is ever straighforward is it?
  • ErrataErrata Forumite
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    .................:)....I'm smiling because I have no idea what's going on ...:)
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