This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+cover+small+180914
Categories:Protection

Fears Govt could reject Dilnot's radical LTC cost cap

  • Print
  • Comment

The Dilnot Commission is set to recommend a cap on long-term care costs of between £35,000 and £50,000 as part of a package of reforms designed to encourage the insurance industry into the LTC market.

The commission publishes its report on July 4 and will propose the cap on LTC costs alongside an increase in the level of assets individuals can retain and still qualify for means-tested support. The current level is £23,250 but is likely to increase to around £100,000.

However, the Observer yesterday reported the proposals are causing a split within the coalition Government with one senior Liberal Democrat claiming Chancellor George Osborne wants to “strangle the proposals at birth”.

Industry estimates suggest introducing the package of measures would require Government investment of between £2bn and £3bn annually.

The cap on costs is only likely to apply to the cost of care, not the associated accommodation costs of residential care, which can be around half the total costs.

The cap has been lobbied for by a number of insurers. Dilnot hopes the insurance industry will offer products to cover the individual’s costs up to the cap and also any potential extra accommodation costs.

If the proposals are agreed by Government a white paper would be published late this year or early next year with an implementation date likely to be after the next general election.

Nine organisations, including Age UK and the British Heart Foundation have written an open letter to Prime minister David Cameron calling for the Dilnot proposals to be implemented.

It reads: “The social care system has been in growing crisis for years. Our organisations deal every day with people at the most vulnerable points in their lives who are either not receiving any social care support or a small level of help that is grossly inadequate to their needs. As a result, hundreds of thousands of people are forced to struggle alone to cope with everyday tasks.

“We call upon the government to take this opportunity offered by the Dilnot commission and produce a white paper in the autumn detailing how it will create a sustainable and fair social care system, including how it will be funded.”

Saga director general Ros Altmann says: “Unless Andrew Dilnot’s recommendations are taken seriously, acted upon, and not dismissed by politicians as being too hot to handle, then we face a care catastrophe that will make the pensions crisis look like a minor problem by comparison.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Have you heard of cases of advised sales being disguised as execution-only?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments