The Telegraph ran an article at the weekend which explained why pensioners could face a bill of up to £150,000 before receiving any government help with the cost of long-term care.
This is despite a proposed lifetime cap on care fees of £72,000.
Despite the lifetime cap, pensioners in some parts of England will be faced with bills of over £500,000 before qualifying for government assistance, under the new scheme.
This is particularly relevant here in Surrey, where the average cost of a bed in a residential care home is £800 a week.
With the local authority rates at an average of just £326 a week, the difference would see a resident spending £560,000 over the course of 12 years before their care costs reached the lifetime cap.
This is because ‘hotel and accommodation’ costs do not form part of the calculation, and neither does ‘cost of living’ fees including food and utilities.
Labour have used the figures to warn that tens of thousands of pensioners will die before receiving a single penny of financial assistance with the cost of long-term care, once the proposed £72,000 lifetime cap has been introduced in April 2016.
With the Care Bill working through parliament and about to be debated by MPs today, it will be interesting to see what impact, if any, these figures have on the shape of future legislation.
Despite positive headlines about government plans to help with the cost of care, following the Dilnot Commission, the reality is that those with assets will continue paying for their own long-term care in the majority of cases.
Those entering care should continue to seek independent financial advice to understand the various options for funding care.
Do get in touch if you have any questions.
