It has been announced that the introduction of the cap on care costs, due to be brought in on 6 April 2016, has now been delayed until April 2020.
Under the reform, people needing care would pay no more £72,000 for the cost of their care, although this figure did not include hotel costs such as food and laundry for those living in a care home.
It is thought the delay is due to the cost of implementation of the reforms and that the delay will save the government £6bn by delaying the changes.
The current legislation for assessing contributions to care costs will remain in force until the reforms are introduced in April 2020. This means that if a person has over £23,250 of capital assets, they will be required to fully fund their own care. For people with capital assets of between £14,250 and £23,250 the local authority will assist with the cost of care while people with under £14,250 of assets will be fully funded by the local authority. The value of your home won’t be included in the assessment if your spouse still lives there. Your income will also be taken into account when assessing what, if any, contribution you must make.
The legislation regarding the funding of care is complex and for more information or assistance with completing financial assessments please contact Amy Wallhead on 01223 461155 or click here to email Amy.