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 Demos, described the £75,000 cap as “miserly” and said it will “do little to solve one of the most vital social problems facing our generation.”
She went on to say “A cap of £75,000 means that the majority of people will still be paying just as much on their social care as they would have before the cap.”
Figures obtained from ‘Fairer Care Funding: The Report of the Commission on Funding of Care and Support’ are available to download here: https://www.wp.dh.gov.uk/carecommission/files/2011/07/Fairer-Care-Funding-Report.pdf
By Karen Shakespeare, 2nd May 2013.