Are You Worried About Long Term Care

Worried About Long Term Care?

If you or someone you love has to go into residential care then the costs of funding that care can often be quite considerable.  Care fees can be anything between £600.00-£1,000.00 a week and if someone is in care for any length of time then it is not too long before the vast majority of their savings and assets are spent and used up in paying for that care.

Politicians have for some years considered how best to provide some clarity and fairness in relation to how residential care fees should be paid if someone has to go into residential care.

The Chancellor of the Exchequer, George Osborne, said that his March 2013 budget was designed for “helping those to who want to keep their home instead of having to sell it to pay for the cost of social care”.

Mr Osborne suggested that a cap of £72,000.00 be placed on social care costs and said that this cap would provide long-term savers with a clearer idea of the maximum amount that people might have to pay if they ever went into residential care.

Mr Osborne also said that the threshold at which people are entitled to means tested help with care costs would be raised from £23,500.00 to £118,000.00.  This threshold in the means tested limit covers total care costs (social care and hotel costs) but the £72,000.00 ceiling does not include hotel costs such as food and accommodation.  Therefore, if you or a loved one’s net assets are worth more than the £118,000.00 limit you would have to pay for any residential care bill yourselves.  This means that a lot of homeowners going into residential care might still find themselves not knowing exactly how much they will have to pay towards their care fees.

Social care and residential care fees is one of the most important financial issues that is facing this country.