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Gee says homes could be forced to cut costs

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.”


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. Once again we have interference in the private sector from the public sector.

    Also who is going to pay for this – yes just like current pensions those who are unlikely to benefit from these new proposals to cap the amount that an individual has to pay (as in a few years people will realise they are unsustainable) will be expected to pay higher taxes to fund them. It would be interesting to see how many people on this committee were below pension age.

  2. Has any one really analysed the Donut commissions report. Increasing the capital limit from £23250 to £100000 whilst retaining the current tariff income means the LA resident would be charged a further £343 week on top of their income. Bizarre to say the least. Anyway any increased state funding should be directed to increasing the quality of care for those without money rather than protecting inheritance and making people richer!!!

  3. It is very unlikely that care homes will be forced to cut costs. Indeed, the premium end of the market will still continue to thrive allowing many of the more affluent elderly to continue their level of quality of life they had prior to going into care.

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