The proposals in the Dilnot Report, which would only affect those who require social care urge care costs to be capped by the state at £35,000.00. A call has also been made in the report for the means-tested assets threshold to be increased from the current £23,250 to £100,000.00. This would ensure that no one requiring residential care in retirement would spend more than 30% of their assets paying for it. Andre Dilnot, the Commissions chair believes that by the state still picking up the bigger bills, it would enable insurers to create products covering costs still to be met.
The Government are still yet to officially give their verdict on the reports recommendations, but the wider view is that this would create a far fairer and less complex system which would be welcomed.
Should these reforms be implemented, they could cost the government about £1.7 billion a year. In a time of public spending cuts, this could prove a major headache for the Government.
For more information on residential and nursing fees and how you stand, please contact MS Legal on 01933 375010 or isobel.mann@mslegal.co.uk
