Quote Originally Posted by Re-sign Carl Dale View Post
Assuming that this idea is a re-invented version of changes proposed in 2015 (which it seems to be), the idea that no-one will pay more than £85,000 is a myth, unfortunately - but it's a great headline!

I'm an IFA specialising in retirement / later life planning, and the proposal seems to be along the lines of ...

Let's say someone's paying £60,000pa (which is about the rate for a good quality care home).

Firstly, £12-£14,000 of this £60,000 will be treated as 'hotel costs' (food and accommodation) so immediately only around £47,000 will be counted towards the 'cap'.

Secondly, the system needs to be set up to avoid it being abused ... if it's all fully paid for when someone hits the 'cap', then we there would be a clamour to book mum and dad the flashest, nicest - and most expensive care home possible. So the amount that counts toward the 'cap' will be a 'reasonable' one. This looks like it's based on what the local authority pay for their care homes; somewhere in the region of £35,000pa.

So, forget that someone's paying £60,000 - Boris reckons £35,000 is what's 'reasonable' to pay (although I've not met any self-funder able to get a half decent care home for anywhere near this), and we need to deduct £13,000 for hotel costs. Therefore of the £60,000 paid, only around £22,000 will only count to this £85,000 'cap'.

To hit the £85,000 'cap' on care, someone paying £60,000pa would need to have actually paid around four years (longer than the average spell in a care home incidentally) - so around £240,000.

After this point, Bozza will step in and pay what they feel is a reasonable element towards the 'care' cost (ie £22,000 per year of the £60,000).

I've got too much time on my hands ... bring back the football!!!
And, as I understand it, there is no backdating of care costs. So, my dad already in care for 18 months, won't have the care-not-food-and-accomodation element count towards the £85,000 until 2023. In England, government will pay care costs when total asset value is less than £20k. Currently that figure is £23,250 so a hidden reduction (£50k in Wales, I think). An as yet undisclosed care subsidy will apply in England between £20,001 and £100,000 of asset value. So, government could pay just 5% of care costs. No-one knows, even though Parliament is due to vote on it today. The headline figure of £85k maximum lifetime care payment by an individual is just spin. May as well paint it as a slogan on the side of a bus.
Anyone living in UK that thinks we have a NationalHS is also being misled. We have a fragmented, confusing, inefficient and, at times, dysfunctional and expensive system.....that isn't integrated with social care. My dad's advice of "don't get old" stands true. Best pass on any assets to the offspring whilst you can. You can't take it with you as care providers will have taken it first.