Care costs. Be aware of the small print
July 2015
Government introduces measures to protect life time savings!
Everything is going to be ok because the government are capping care costs! But beware the small-print.
Although there will be a cap of £72,000 introduced next April it is widely predicted that the overall cost of funding elderly care could still be massively in excess of the amount quoted.
The cap will only apply to the cost of the 'personal social care' and will only apply to the particular local authority rate. The 'hotel costs' ie the cost of being resident at a care home as opposed to the cost of treatment/care provided, will not be included in the capped amount.
It would appear then that the provision of a little luxury for the elderly will continue to be frighteningly expensive. Partnership, a specialist in provision of financial products for later life planning, estimates that individuals will be still be expected to pay between £12,000 and £17,212 per year for as long as care is needed.
Partnership go on to say: 'There are even hurdles to jump in order to bring the cap into play. Firstly, the care recipient will have to have been assessed by their local authority and, secondly, local authorities will usually only meet needs in the two most severe bands of need (substantial and critical).'
It would appear then that the provision of a little luxury for the elderly will continue to be frighteningly expensive. Happy days, best to plan ahead!
Steve Hall