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Care fees news articles

Care fees: Demos predicts the elderly will be worse off with the £75,000 care fees cap

Demos, the think-tank focused on power and politics, believes an extra 120,000 elderly people a year will receive no relief on their social care costs as a result of the government adopting a cap of £75,000 instead of £35,000. Figures from Andrew Dilnot’s government-commissioned review into the future funding of social care showed that 37% of people aged over 65 would have their social care bills reduced by a recommended £35,000 cap on individual care costs. However, the Health Secretary Jeremy Hunt has announced that the Government will introduce a £75,000 cap instead.  According to Demos, the £75,000 cap will only help 16% of the over-65 population, a difference of 117,096 pensioners every year based on 2011 census figures. Currently the means-tested threshold where people are required to fund the full costs of their care is £23,250, which the Government is expected to raise to £123,000. Claudia Wood, Deputy Director of …Read More

Is your client worried about having to sell their house to pay care fees?

Many people worry about needing long term care in the future, and having to sell their house to pay for it.  Some ask whether they can give their house to their children or other family member now, in order to protect it from being sold. There are a number of things for your client to consider before making a major decision like this and the Law Society has issued guidance for anyone considering giving their house to children or other family members, which is set out below. As an alternative to giving their house away, there are trust options that may be more suitable to their needs. Things to consider before giving a house away If your client transfers their house to a family member or carer: There may be savings in relation to inheritance tax and administration costs upon their death. They may avoid the need to sell their house to pay for care fees. Their house …Read More