Retirement Planning
Dilnot Commission calls for cap on care costs
Rob Langston, 04 July 2011
An independent review into the funding of adult social care by the Dilnot Commission has called for a cap on costs and for the means-tested threshold to be raised.
Proposals put forward in the Commission on Funding of Care and Support's final report would see the current system would be revised and would cost the government around £1.7 billion.
Under the current system individuals pay all care costs until they have assets of less than £23,250.
Instead, those with high care costs would pay up to a set amount with subsequent care costs paid for by the state.
The proposals called for a cap on care costs during an individual's lifetime contribution to be set between £25,000 and £50,000, with the commission recommending a £35,000 figure.
The commission recommended the means-tested threshold, beyond which individuals are liable for full care costs, should be increased from £23,250 to £100,000.
Andrew Dilnot, chair of the commission, said adult social care funding had been 'ignored for too long'.
He said, 'We should be celebrating the fact we are living longer and that younger people with disabilities are leading more independent lives than ever before.
'But instead we talk about the "burden of ageing" and individuals are living in fear, worrying about meeting their care costs.'
Dilnot said the existing adult social care system was 'confusing, unfair and unsustainable', warning that the most vulnerable would suffer.
He added, 'Putting a limit on the maximum lifetime costs people may face will allow them to plan ahead for how they wish to meet these costs.
'By protecting a larger amount of people’s assets, they need no longer fear losing everything.'
However, the report did find that those in residential care should contribute a standard amount to cover general living costs, such as food and accommodation.
Advertisement
Free Magazine: How To Invest For Income
Free Magazine: How To Invest For Income In this free edition of MarketViews, Peter Temple highlights key features that can make income-based investing generate such good results. Get your free copy here
Free Guide: 8 Common Trading Indicators
Get this free guide to find out how to use technical indicators to give you a sense of what the market will do next. Get your free copy here.
No hassle and no admin fees. Open an account now with The Share Centre. Find out more.
A free guide to Gold Investment
Physical Gold protects against global economic downturn by providing crucial portfolio balance. You can buy gold bars for your UK pension and receive up to 40% price discount via tax relief. Buy tax-free gold coins as an alternative to poor interest rates. Find out more and download this free guide to gold investment.
The TaxGuide.co.uk has a wealth of tips and advice from working out your tax bill, through to the latest personal tax rules. Get your personal tax tips today.
FREE Report: Inside Investment Trusts
Written by the team behind What Investment, this exclusive FREE report covers:
- Why Investment Trusts are better than Unit Trusts
- How new legislation is broadening the appeal of Investment Trusts
- Where to look for buying opportunities
- Why now is the time to buy Investment Trusts
- The Investment Trusts to invest in at the moment


Comments
Please register or login to comment on this article.