If the cap fits How care proposals might work

Until Theresa May announced an “absolute limit” on care costs yesterday, homeowners faced losing all but £100,000 of their home, savings and other assets to pay for care.

Anyone with a house worth £500,000, for example, would be liable for care costs of up to £400,000. They would keep the remaining £100,000 because of a “floor” on costs promised in the manifesto.

Mrs May’s cap means people with assets of more than £100,000 would only be exposed to a maximum contribution.

Mrs May has not said what the cap would be, but the 2015 manifesto said £72,000.

At this level, the same person with a £500,000 home would only pay £72,000. Critics say this means the “dementia tax” will hit people with modest estates hardest. Someone with assets of £172,000 would lose 42 per cent of their estate; someone with £500,000 would only lose 14 per cent.