You will never see this lifetime cap on care fees
An important part of the Care Bill which is currently progressing through parliament is the introduction of a lifetime cap on care fees.
The Care Bill completed its House of Lords stages on 29th October 2013 and was presented to the House of Commons on 30th October 2013.
This Bill is expected to have its second reading debate in the House of Commons on a date to be announced.
The lifetime cap follows the recommendations of the ‘Dilnot Commission’ and is designed to limit the total anyone will pay in their lifetime for care to £72,000.
This proposed lifetime cap will apply to the cost of care that people receive either in their own home or living in a care home.
It does not however include what are known as ‘hotel costs’.
In other words, the cost of bed and board are not included in the £72,000 lifetime cap on care costs. They will not count towards the cap and they will continue to be charged separately once the cap is reached.
This and the fact it will be based on the standard rate local authorities pay for care in their region mean that most people will never benefit from the lifetime cap, once it is eventually introduced.
Some new analysis by the Labour party in Lancashire shows that nine out of ten elderly people in the region will have died before they reach the lifetime cap.
As a result of the new rules, it could result in those in care paying more than twice as much during their lifetime as they might have paid under the current system.
Care fees planning can be a complex area, as it involves the combination of specialist Financial Planning, investment advice, and understanding the various legislation and state benefits available to mitigate costs.
Do speak to us if you have any questions about the proposed lifetime cap or your own care fees planning.