The Government recently unveiled new plans to put a cap on elderly care costs from 2016 – stating that a cap of £72,000 on care costs would end an era of large care bills, which normally sees elderly people and families having to sell properties to cover the costs. However, the problems are not over for many, the actual number of people in society who will benefit from this cap is marginal, only those who have assets of less than £23,250 (excluding the value of their home) will be able to get their local council to pay the costs.
So if someone has £50,000 in the bank will have to pay their care home bills until the sum is reduced to £23,250 and then they can defer the payment until after their death when the council will recoup the costs from the individuals estate. The £72,000 cap does not include the costs of daily living, which is the so-called “hotel costs” such as food and energy bills – under the reforms these costs will be set at £12,000 a year – about a third of typical care home fees. Individuals with middle incomes will receive little or no benefits. Meanwhile, it will be up to your local council to work out how much an individual must pay leading to possible disputes over the true costs of care, as councils often get discounted prices for care places based on bulk buying.
According to the government just one in eight people will actually benefit from the cap in the long run. Here at Acorn Solicitors we specialise in Nursing Home Fee Recovery and dealing with elderly client matters and can help you to recoup wrongly paid care fees.