Upcoming Changes to Social Care Funding in England
The Government is set to reform social care in England, introducing significant changes to the rules around state funding for social care. These reforms include the introduction of a ‘cap’ on care costs and revised capital thresholds for means-tested funding.
The Proposed Cap on Care Costs
One of the central features of the proposed reforms is the introduction of an £86,000 cap on personal care costs. This cap is intended to limit the amount any individual in England will need to spend on personal care over their lifetime. Personal care encompasses the residential care, nursing care, and support required for daily activities such as washing, dressing, mealtime assistance, and managing health conditions.
The £86,000 cap means that even those with significant assets who self-fund their care will not need to spend more than this amount on personal care. However, certain costs are excluded from this cap, such as accommodation, food, energy bills, lifestyle and wellbeing expenses, and consumables.
Implementation Timeline
Initially, the reforms were scheduled to be implemented in October 2023. However, the Government announced a two-year delay in its Autumn Statement on 17 November 2022. The new implementation date is October 2025. Until these changes come into effect, the current funding rules remain in place.
Changes to Capital Limits for Care Funding
Alongside the introduction of the care cost cap, the Government is also revising the capital thresholds for means-tested social care funding. The new thresholds are as follows:
- Savings and assets below £20,000: Residents will receive state funding with no contributions required from their assets or savings. Contributions from income may still be required.
- Savings and assets between £20,000 and £100,000: Residents will receive means-tested state funding. They will have an ‘independent personal budget’ reviewed annually to track spending on care. Residents may contribute up to 20% of their assets per year towards care costs.
- Assets of £100,000 and above: Residents will self-fund their care until their assets drop below £100,000 or the £86,000 care cap is reached.
The introduction of the cap and revised capital thresholds will mean that for those requiring long-term care, the costs could be significantly reduced over time. While the reforms have been delayed, they remain a crucial consideration for those planning for care in the future.
For further advice on moving into an Oyster Care Home or to discuss how these upcoming changes might affect you or your loved ones, please contact us by calling 0330 441 0506 or clicking here: https://oystercarehomes.co.uk/contact/. We are here to support you.
For more information guidance and case studies, visit the Government’s website here
