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Advisers attack Govt for ignoring Dilnot’s £35k cap proposal

London UK Thames Parliament 480

Advisers have criticised the Government for failing to implement Andrew Dilnot’s long-term care funding recommendations in full.

The Government this week announced it will introduce a care cost cap of £75,000 in April 2017.

The asset threshold above which people will be unable to claim support from the state will be increased from £23,250 to £123,000.

A separate £12,000 annual cap will apply to so-called “hotel costs”, compared to the £7,000-10,000 recommended by Dilnot.

The reforms will be partly funded by a freeze in the inheritance tax threshold, with the rest of the money coming from the increased national insurance contributions from employers which the Treasury will receive as a result of the abolition of contracting-out.

Hunt hailed the proposals as a “watershed moment” that will “end unfairness” in the care system.

When the Dilnot Commission published its final report on the future of long-term care in July 2011, it proposed setting a cost cap of between £25,000 and £50,000 at 2010/11 prices, with £35,000 the recommended figure.

The figure chosen by the Government equates to £61,000 in 2010/11 prices – well above the maximum level put forward by Dilnot.

Worldwide Financial Planning IFA Nick McBreen says: “The reality is a cap of £75,000 is going to help very few people because most people will not be in care long enough to reach it.

“I do not understand why the Government would commission someone like An­drew Dilnot to do a very good piece of work and then completely ignore his main rec­ommendation.”

Rowley Turton director Scott Gallacher says: “The idea of a cap is a good one but it is disappointing the Government has ignored the figure proposed by an independent report.

“Ultimately, I cannot see how this will succeed.

“People already are not saving into a pension, so even if an insurance market developed – and I do not think it will – the idea that people will magically find more money to fund long-term care savings plans is crazy.”


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