Cap on Care Fees
Cap on Care Fees

Cap on Care Fees

The ‘Lifetime Cap on Care Fees’ proposed from Oct 2023 will be delayed until 2025 

The government’s plans to limit how much an individual in England will pay for their own social care have been delayed by two years.

In the Autumn Statement (17th November 2022), chancellor Jeremy Hunt said the cap will now come into effect in 2025.

The reforms were first outlined in September 2021 by then-prime minister Boris Johnson, and were due to come into effect in October 2023

How will this affect you and your loved one? If you are paying for care, do you need to do anything and when?

Tony had the same questions… Tony’s Mum Audrey was moving into a Residential Care Home earlier this year. With approx. £250’000 she would be considered a ‘Self Funder’ by the Local Authority for Adult Social Care. After our advice Audrey’s care needs were assessed and the Local Authority were able to help with some assistive technology and support at home until the move had been decided. Tony was keen to ensure that Audrey wouldn’t have to move, once they had found the right place and not paying over the odds were also priorities for the family.
Our Care Funding and Benefit check helped Tony narrow down his search for care and make sure that Audrey was receiving the right benefits. We confirmed that Audrey was not eligible for Health funding and explained how to engage with his Local Authority and the effect of a ‘Lifetime cap on care fees’ for Audrey in the future.

“Wow! From beginning to end you helped me to understand what was happening, get the right assessments, find a care home and claim benefits that I didn’t know existed. I can’t thank you enough”. LK – Towcester

Will the cap on care fees affect me?

Proposals to introduce a cap on care fees from October 2023, have been delayed until 2025. The government intends to introduce a new £86,000 cap on the amount anyone in England will need to spend on their personal care (not daily living) over their lifetime.  

Extended Means Test

The upper capital limit, the point at which people become eligible to receive some financial support from their local authority, will rise to £100,000 from the current £23,250. This will apply irrespective of the circumstances or setting in which an individual receives care, including care in your own home.
The means test for financial support will continue to work in the same way as it does currently to determine what someone can afford to contribute towards the costs of their care based on the amount of savings and income a person has:
  • £100’000+ (currently £23’250) – You will be a ‘Self – Funder, able to pay for your own care.
  • £20’000 – £100’000 – A tariff income of £1 for every £250 is applied during a financial assessment
  • Below £20’000 (currently £14’250) – Only your income will be financially assessed

Daily Living Costs

The term ‘personal care costs’ refers only to the components of any care package considered to be related to personal care, not hotel and accommodation costs. The cap will not cover the daily living costs (DLCs) for people in care homes, and people will remain responsible for their daily living costs throughout their care journey, including after they reach the cap. For simplicity, these costs will be set at a national, notional amount, the equivalent of £200 per week in 2021 to 2022 prices

How will you progress towards the cap? Your Personal (or Independent) Personal Budget

For each person with eligible needs, the local authority must provide either a personal budget, where the local authority is going to meet the person’s needs, or an independent personal budget (IPB), where the individual arranges their own care. The personal budget will set out the cost to the local authority of the care they have arranged, whereas the IPB sets out what it would have cost the local authority to meet the person’s needs.

Who chooses my care?

Section 18(3) of the 2014 Care Act allows self-funders to request that their local authority commissions their care, in the same way as those who are supported by the means test. Self-Funders may continue to chose their own care BUT it will be the Independent Personal Budget (or cost to the Local Authority) that will be relevant to the ‘care account’ NOT a higher amount agreed with a provider.
Further details of the calculation of an IPB and self-funders asking local authorities to arrange their care will be confirmed following the coproduction of the statutory operational guidance on these reforms and be subject to the following consultation on that guidance early next year.

Once the cap has been reached

Once the cap has been reached, the person will continue to remain responsible for meeting or contributing to their daily living costs and any top-up payments they have chosen to make. It will be the responsibility of the local authority to inform the person that they have reached the cap.

Do I need to do anything?

Even if you are paying towards or the full cost of your care  you can request a Care Act assessment from your Local Authority and a Care Funding and Benefit Check will help you understand the ways to pay for care and make sure you are claiming your benefit enetitlement.

Thank you for reading this weeks blog, Cap on Care Fees .

If you would like some help please Get In Touch.

Care Navigators

(September 2022 – updated Nov 2022)

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