3m will be hit by delay in capping care costs
DELAYING the launch of the new £86,000 social care cap on costs would be a “hammer blow” to nearly three million over-75s, a report has warned.
Nearly six in 10 (59 per cent) of these elderly people are waiting until the policy is in place before planning for future care they may need, it found.
Those with assets of less than £20,000 would not have to make a contribution to their care from savings or the value of their home.Those with assets of between £20,000 and £100,000 would be eligible for means-tested support.
However, it recently emerged that ex-prime minister Liz Truss intended to U-turn on her predecessor Boris Johnson’s flagship social care policy, due to come into force from next October.
Since then, Ms Truss has been replaced with new Prime Minister Rishi Sunak, who has not rowed back from the U-turn – and has warned of a “profound” economic crisis.
A one-year delay to the reforms would save £1billion.
Stephen Lowe, of retirement specialist Just Group which conducted yesterday’s report, said: “You can’t expect people to engage with care planning when the goalposts keep moving.
“It’s only by sticking to the announced plan and communicating the policy details that people will have confidence to put arrangements in place.
Catastrophic
“Otherwise, it’s a catastrophic failure to deliver on much-needed reforms which were so close and yet now seem so far away and will be a hammer below for families up and down the country.”
He went on: “The number of over-85s in the UK is expected to nearly double in size to 3.1 million people by 2045 which is going to ratchet up pressure on the care system year by year.
“We urge the government to stick to their original timetable so that people in England can plan securely.”
Former pensions minister Sir Steve Webb agreed, saying: “Without action, families will continue to be exposed to the risk of catastrophically large care costs which can wipe out the value of a family home.
“There is no excuse for delaying this measure any further.”
Tory MPs in favour of the cap reform have expressed fears that a delay could be a prelude to a dropping of the reforms entirely.
Conservative former minister James Cartlidge said the everyone should be concerned about any delay: “As I understand, the cap may now be delayed or even not come into force at all. I think we should all be very concerned about that.”
Ms Truss scrapped the rise in national insurance contributions that Mr Sunak brought in as Chancellor to fund the social care reforms. It remains to be seen if Mr Sunak will reimpose the NI rise.