MSE News: Government unveils £75,000 care bill cap

"Bills for long-term care in old age are to be capped at £75,000 in England, the Government has announced..."
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Government unveils £75,000 care bill cap

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  • runninglearunninglea Forumite
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    This only covers care for basic needs - bathing etc

    People whom need to go into care will still face a bill of £1000 per month to cover 'living costs'

    Even at the 75K cap this means that the majority of people will continue to need funding as the majority of people have not even got 75K in their pension pot, let alone another pot to help them with their care costs.
    Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
    .1%) (42/100) payments made. Total paid 2019 year £1,700
    Total paid 2017 year £15,300Total paid 2018 year £13,600
  • 50Twuncle50Twuncle Forumite
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    Let me get this straight - if we pay out £75,000 each (no doubt - up front too ?) - any more accommodation costs will be paid for by the government - not care,food etc - just the room costs ?

    How many people have got £75,000 in cash lying about anyway (couples don't even get a discount - I bet) - £150,000 for a couple.

    This is a joke - right ?
    I always disliked the tories - but this is just unbelievable.
  • jobdone1jobdone1 Forumite
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    Its called the torries
  • runninglearunninglea Forumite
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    No we pay out 75K on basic care needs plus the £1000 per month that it costs for room, food etc.

    So most people will still end up having to sell if they end up in a home
    Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
    .1%) (42/100) payments made. Total paid 2019 year £1,700
    Total paid 2017 year £15,300Total paid 2018 year £13,600
  • First of all ladies and gents, this problem of looking after the elderly has been a hot potato for years. Successive governments have kicked this issue into the long grass several times. Indeed I believe Tony Blair pledged to deal with this issue when he came to power.
    Not wanting to get political, regardless of who is in power, this issue of paying for care is not going away. Dilnott was commissioned to look into funding and came back with a £35,000 cap proposal . This has been increased to £75,000, index linked.
    Remember, this is just a proposal at this stage and things could change. Remember what was going to happen with inheritance tax? That has gone up from around £2.8 bn to £3.2 bn in terms of revenue since 2011. Those figures are broad but by not increasing the inheritance tax threshold, more revenue is produced as people fall into the inheritance tax trap.
    What has been proposed and reported is smoke and mirrors. The cap is not a cap. It is rather like a meter in a taxi. Once you have paid a certain amount on care fees ( not residential costs such as food and accommodation) a recalculation of your means are assessed.
    The Local Authority set a level up to which they will consider funding care. This is if you like a benchmark. Over this, any care costs have to be met by the resident or the family.
    For example, if the Local Authority set the level at £400 per week ( hypothetically speaking of course) and the home in which the care is provided charge £700 per week, there is a shortfall.
    This shortfall still has to be met even if the cap of £75,000 has been reached. The difference is that a resident might now qualify for the Local Authority funding up to the £400.
    The cost of accommodation continues, no clear plans as to whether this will be capped, only time will tell, but I doubt it. The calculations at the moment include an amount of £240 per week to pay for food and lodgings.
    I wonder how many single O.A.P s have an income in excess of £240 per week but own their own home? The costs have to be met and if they have assets above £23,250 they meet the full cost of care. This level is set to increase to £123,000.
    Just like inheritance tax you can plan ahead reducing if not elimination the threat, but you have to plan early.
    The care fee funding shortfall identified by Dilnott was around £2bn. Home owners in this Country over the age of 65 own £750 bn debt free property. Do the maths, where do you think the Government think the money should come from?
  • quotememiserablequotememiserable Forumite
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    21Twinkle wrote: »
    This is a joke - right ?
    I always disliked the tories - but this is just unbelievable.

    Did you know that the only money governments have to spend is what they tax from you? So saying 'the government should pay more' is another way of saying 'I should pay more'.
    I don't get the whole thing about wanting to keep your home when you need to go into care. What for?
  • Marine_lifeMarine_life Forumite
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    I don't get the whole thing about wanting to keep your home when you need to go into care. What for?

    Well...so you can pass it on to the next generation.

    After all the next generation is going to struggle as not only are they having to pay more (on things like education) but they will not have the benefitr of capital appreication on assets enjoyed by the current generation, nor will they have the benefit of defined benefit pension schemes etc. So the nation is facing the potential for a singificant reduction in wealth.

    However, having said that I am very sympathetic to your overall message. I am sick of hearing people blame the government (any government) for cut-backs. Simply speaking if there is not enough money to spend where should they get it from? Its very simplistic to say increase taxes for the rich but tax them too much and they will simply go elsewhere. "Stop" paying money supporting the EU and / or immigrants is also far too simplistic.

    I could go on....
    Money won't buy you happiness....but I have never been in a situation where more money made things worse!
  • I am looking for advice of how to avoid paying carehome fees, gifting the property to children dosen t sound like it will work.
    any comments on the trusts that have been suggested on certain websites!
    PS...
    I normally wouldn t bother and just pay BUT I have paid my taxes all my life, hardly used the NHS, never clained benefits etc and some have never worked and will probably not have to pay care home fees as they have not saved or planned!
    So really the benefit system needs to change maybe the benefits claimers could work in the homes un paid....??? that would keep the costs down
  • LintonLinton Forumite
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    buggly33 wrote: »
    I am looking for advice of how to avoid paying carehome fees, gifting the property to children dosen t sound like it will work.
    any comments on the trusts that have been suggested on certain websites!
    PS...
    I normally wouldn t bother and just pay BUT I have paid my taxes all my life, hardly used the NHS, never clained benefits etc and some have never worked and will probably not have to pay care home fees as they have not saved or planned!
    So really the benefit system needs to change maybe the benefits claimers could work in the homes un paid....??? that would keep the costs down

    So you are trying to work out how you can be a benefit claimer and live off my taxes when you actually have the wealth to support yourself! And you so much want to be one that you are prepared to risk that your final years are spent in the cheapest care home that the council can find.

    Most people dont end up in care homes, but the chances are you will get your full value from the NHS in your later years.
  • mgdavidmgdavid Forumite
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    I don't get the whole thing about wanting to keep your home when you need to go into care. What for?

    <Well...so you can pass it on to the next generation.>

    All well and good if the next generation look after you in old age like previous generations since time immemorial did. But if care is delegated to the State, that comes at a price.
    The questions that get the best answers are the questions that give most detail....
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