IFA Philippa Gee has expressed concerns about the Dilnot recommendations, saying they could put pressure on care homes to cut costs.
The commission has proposed a £35,000 cap on care costs, an increase of the meanstested threshold from £23,250 to £100,000 and a standard maximum contribution towards general living costs of between £7,000 and £10,000 a year. Care costs above the cap and general living costs above the limit would be met by local authorities.
Philippa Gee Wealth Management managing director Gee argues that the amount of money local authorities pay care homes tends to be lower than if that person was paying for themselves, with self-funders supplementing the amounts that care homes get from local authorities.
Gee says: “If everything is paid for by the local authority, there is going to be an enormous pressure on care homes to cut costs. Is that what we are trying to achieve? If the £10,000 maximum limit is upheld, that could destabilise the financial stability of the care homes themselves.”