March 2013 Proposed Changes to Residential Care Funding

The Government has announced new measures for funding care to ensure that the elderly and those with disabilities get the care they need without facing unlimited costs.

The new measures are based on the recommendations made in 2011 by the Dilnot Commission, an independent panel set up to look at the fairest and most sustainable way to fund care and support in England.
From April 2017 the new measures will include:
A cap on care costs, even for those with the most serious needs and who incur very high care costs.
A requirement once someone is assessed by their local authority as having eligible care needs, to be told how much it will cost the local authority to meet those needs with local services. These costs count towards their cap.
The value of the cap will be equivalent to around £61,000 in 2010/11. 
Currently only those with assets of less than £23,250 get help with paying for their care costs.  The proposed changes will mean that those with property value and savings of £100,000 (in 2010/11 prices) or less will start to receive financial support, with the Government paying a proportion of their residential care costs on a sliding scale.  The most financial support will go to those with the greatest care needs and the least in savings or home value, and the poorest people will continue to have the majority of their care costs paid.

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