After decades during which governments of all stripes were unable or unwilling to confront the challenges of social care, I welcome the Government’s commitment to address the issue head on.
Its historic plan for adult social care is a major step forward in tackling the appalling unfairness that for years has left those who have worked hard and paid their taxes throughout their working lives liable for vast and largely uncapped care costs. These measures will address that unpredictability.
From October 2023, no eligible person starting adult social care will have to pay more than £86,000 for personal care over their lifetime. The reformed means test will increase the threshold above which people must meet the full cost of their care to £100,000. This is more than four times the current limit of £23,250, and the number of people receiving state support in the social care system will increase from around half to two thirds.
I have long said that that we need to move towards a ‘cap and floor’ system, whereby contributions are capped and individual assets are protected below a prescribed ‘floor’, a blend between the Dilnot model and the German system. We have now begun that journey. In designing these reforms, the priority has been the creating a more generous means-testing system, which benefits those with low to moderate wealth.
Only the amount that an individual contributes towards their personal care will count towards the cap, and a much more generous means test will better support those with lower levels of assets. Fewer people will be unable to pay for social care without selling their home under the reforms to the social care charging system compared to the existing system.
These reforms will complement the existing system which ensures that nobody will have to sell their home to pay for their care in their lifetime. People are able to take out a Deferred Payment Agreement so that payments can be deducted from their estate after they die. And if someone or their spouse lives in their home, they will not be forced to sell it to pay for care.