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17th February 2021

Social care costs: good news on the horizon – but can the public purse afford it?

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At the end of last year, the Health and Social Care Committee published a report that, amongst other things, recommended the introduction of a lifetime limit to care costs. The government has now responded to the report and agreed to introduce a cap of £46,000 per individual. 

The cap was initially proposed in the 2011 Dilnot report so progress has been slow so far.  However, the government has now committed to introducing the new cap by 2023/24.  This will be welcome news to those facing mounting costs for years of care.

It is estimated that the proposed cap will cost the public purse over three billion pounds per year. Calls for social care costs to become entirely government funded – at a cost of over seven billion pounds per year – have so far been rejected.

The lifetime cap alone will place a significant additional strain on public finances, at a time when things are already stretched. All eyes are trained on the upcoming budget, with changes to capital gains tax and income tax expected. It remains to be seen what further changes are made to fund the expansion of the social care budget.

In the meantime, care costs will continue to be a significant issue for many individuals and families. If you need advice in relation to a dispute about funding for care, our expert Tiffany Benson is here to help. You can contact Tiffany on 01604 463340 or click here to email Tiffany.