Elderly Care Cost Limit Proposals Resulting from Dilnot

monkeyspanner

This article spells out more detail of the £75000 cap.

http://www.bbc.co.uk/news/business-21507462

The cap will be applied to non hotel cost but also it will not be applied to the actual fees paid but only on the basis of the standard local authority support fee. This will mean that the actual fees paid will be substantially more than the £75000 cap.

Although the savings limit will be raised from £23250 to £123000. A tariff income of £1 per week will be applied to each £250 of savings between £17500 and £123000 (an assumed income of 20% per annum). The article gives the example of £100000 in savings equating to a weekly tariff income of £330 per week. Add this to a max hotel cost of £12000 per year i.e. about £240 per week. So will there be any point in looking for council support when paying fees under about £650 per week?

As usual this is about government appearing to do something whilst not actually doing anything to solve a very real issue.

seven-day-weekend

dhj wrote: »

Am I the only one confused by this? If the assumption is that I don't have to sell my house then where is the £74,999 going to come from to pay my care home fess before the government step in?

Your income plus savings?

Errata

Although the savings limit will be raised from £23250 to £123000.

Is that savings, or assets? I would think vanishingly few people have £123k in hard cash tucked away in a piggy bank.

seven-day-weekend

Errata wrote: »

Is that savings, or assets? I would think vanishingly few people have £123k in hard cash tucked away in a piggy bank.

It is assets, but many houses now in some parts of the country are worth less than that, so if that is all you have, you will not have to pay and your relatives can have your house.:) My house is probably worth a bit less than that, but we have savings so....who said they were going to buy a sports car???:rotfl:

monkeyspanner

seven-day-weekend wrote: »

It is assets, but many houses now in some parts of the country are worth less than that, so if that is all you have, you will not have to pay and your relatives can have your house.:) My house is probably worth a bit less than that, but we have savings so....who said they were going to buy a sports car???:rotfl:

That was one of the points I was trying to raise.
If your total assets were £100,000 including property and only income state pension.
The council assessment would be roughly.
£100,000 less £17,500 = £82500 divided by £250 =
Tariff income £330 per week
plus pension say £100 per week
Total assessed income £430 per week
less weekly allowance £20 per week
net income £410 per week
Total care home fees £650 per week
less hotel costs £240 per week
£410 net fees excluding hotel costs
council contribution NIL

The only upside of this would be that the council has to offer a deferred payment arrangement.

These proposals are a deception. IMHO

monkeyspanner

Interesting commentary on the implications of Dilnot recommendations on CHC funding.
http://www.scie.org.uk/publications/reports/report57.pdf

Should carry a health warning in itself as 80+ pages.