Covid ruined plans to cap care cost fees

Ministers ‘90% agreed’ on reform – and debated a new tax to fund it

MINISTERS were considering introducing a cap on care costs before the coronavirus outbreak, it emerged yesterday.

They even discussed plans for a new social care tax to pay for it.

Health Secretary Matt Hancock admitted this week that discussions on social care reform have been put off during the pandemic.

In the 2015 election the Conservatives pledged a cap on the maximum amount Britons have to pay towards their social care – an idea championed by economist Sir Andrew Dilnot.

But they dropped the pledge a year later, and at the last election Boris Johnson merely promised cross-party talks to deal with the issue.

The idea of a cap was raised again during talks between ministers and Sir Andrew early this year, the BBC reported. Details were not agreed by the March Budget and were put off until the autumn.

A senior figure involved in the talks said there had been ‘90 per cent agreement’ on revisiting Sir Andrew’s model. The Prime Minister is understood to have taken part in the discussions.

These proposals would have introduced a more generous means test for government funding as well as a lifetime limit on social care costs.

Under England’s current social care system, anyone with assets over £23,250 – including the value of their homes – is expected to contribute to costs.

Ministers are also said to be considering making changes to the funding of the social care sector, which is under severe strain after years of cuts to local council budgets. One option is to hand money more directly to English care homes, rather than the current model of providing funding through local councils.

Earlier this month, £600million in government funding to help with infection control in care homes was guaranteed to local authorities. Mr Hancock hinted that a similar model could be an option for long-term financing of the system.

The Daily Mail has been campaigning for an end to the scandal of Britons having to spend all their savings on social care in their old age.

Sources told the BBC that the Conservatives seriously considered including providing free personal care in their manifesto for last year’s election.

However, the idea was ditched because the party wanted to rule out rises to income tax, VAT or National Insurance.

The plan could have cost as much as £10billion in the first year. Free personal care – help with things such as washing, dressing and meals – is already available in Scotland, but those who live in care homes have to pay their ‘hotel’ costs.

Downing Street would not comment on the 2019 manifesto. But a Government spokesman said ministers were committed to bringing forward a plan ‘so everybody is treated with dignity and respect, and nobody has to sell their home to pay for care’.

Last night Damian Green, de facto deputy prime minister under Theresa May, said a Dilnotstyle cap was not fair on those living in the North because property prices are lower there, meaning adults would lose a greater proportion of their wealth before a cap kicked in.