HOW RULES HAVE CHANGED
WHAT IS THE CURRENT SYSTEM?
■ You pay full cost of care, using assets – like savings and the value of your house – if needed, until …
■ … your assets are down to £23,250, when the state starts helping, rising until you reach your last £1 ,250 (although after this you may still be asked to contribute).
■ There is NO upper limit on the sum you pay. ÷ You can defer selling your home until after your death by taking a loan from your council.
WHAT ARE THE NEW RULES?
■ You won’t ever pay more than £86,000 for a lifetime of ‘personal care’.
■ BUT the cap does not include daily living costs, such as accommodation, food and heating.
■ PLUS the lifetime cap doesn’t cover the extra costs of a dearer care home – only what your local authority pays for those poor enough to receive it free.
HOW WILL THE NEW ‘FLOOR’ WORK?
■ The state will start helping towards your costs when you are worth £100,000 – a major rise.
■ If your assets fall to £20,000, you will pay nothing.
■ Between these levels, you pay no more than 20 per cent of your assets. And as they deplete, the state gradually pays more. When your assets are down to £60,000 – the halfway point – the state will fund 50 per cent.
WHEN DOES IT START?
■ Not until October 2023. Any care costs before this date will not count towards the £86,000 lifetime cap.
■ But the £100,000 floor will begin straight away.
■ The NI tax rise to help pay for it all commences in April next year.