The government has brought forward the implementation of a long-awaited cap on the cost of care to 2016, and set it at £72,000.
In his Budget speech, George Osborne said he would bring the social care cap forward to 2016 to help people pay for care. The threshold for means tested residential care will be set at £118,000 from the same year.
The cap was originally planned for 2017, to be set at £75,000.
The cap will mean that no one has to pay for care which exceeds £72,000. It follows recommendations made by economist Andrew Dilnot in 2011.
Mr Osborne said: “Helping with aspiration also means helping those who want to keep their homes instead of having to sell it to pay for the costs of social care. That’s what our new cap will deliver – as Andrew Dilnot recommended.
“For decades politicians have talked of doing something for savers and those who have to sell their homes to pay for care; and yet nothing has been done.”
Rebecca Mollart, director of policy at erosh, said: “We are pleased to see that the Government has pledged a commitment to helping people who want to plan and save for old age, and acknowledge that many are facing rising care costs.
“However, the social care funding reform will mean that many people will still be faced with the tough decision of having to sell their own home to pay for care costs, but the cap of £72,000 is lower and will be introduced sooner than expected along with a raise in the threshold for the means test for residential care to £118,000.
“We will not see these changes until April 2016 so the reform of social care is still a way off but it is a step in the right direction to see the Government accepting the recommendations of the Dilnot Report and acting on those to protect the needs of vulnerable older people.”
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