Paying or managing care fees – what ever happened to the Care Cap?

Published on 23 January 2018

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The Government had previously stated that the ‘Care Cap’ introduced in the Care Act 2014 would not be implemented until 2020. This made forward planning to cater for care fees particularly difficult. Many wondered if this would mean it would, in effect, be kicked into the long grass and quietly abandoned.

Wonder no more!

The Care Cap will now NOT come into effect in 2020 or indeed at all.

In a Parliamentary Statement in the House of Commons at the end of last year, Jackie Doyle-Price, the Parliamentary Under-Secretary of State for Health, in response to an Opposition Day Debate on social care, gave more detail about the new Green Paper and the proposed stakeholder engagement.

She made the following statement:
“The Prime Minister has been clear that the consultation will include proposals to place a limit on the care costs that individuals face. To allow for fuller engagement and the development of the approach, and so that reforms to the care system and how it is paid for are considered in the round, we will not take forward the previous Government’s plans to implement a cap on care costs in 2020. Further details of the Government’s plans will be set out after we have consulted on the options. The Green Paper will focus primarily on reform of care for older people, but will consider elements of the adult care system that are common to all recipients of social care.”

This development will doubtless raise further concerns for those currently paying care fees and for those who have the responsibility of managing the care fees of others, perhaps by acting as Attorney or deputy. Typically, a key concern is the position on depletion of funds and the real possibility of having to find alternative, less costly, care accommodation.

As a starting point, it is important to understand when an individual is required to fund care costs and when it is the responsibility of the NHS to provide funding and what sources of funding might be available.

Paul Howson, Chartered Financial Planner and Later Life specialist at Kreston Reeves is a fully authorised member of SOLLA (Society for Later Life Advisers) and is available to discuss this and associated areas of financial planning. Please contact Paul on 0127 768 231 or email Paul here.

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