£86,000 Care Home Cap
The government recently announced changes to how social care is funded, the most prominent of which is the introduction of a cap on how much a person will pay for care over their lifetime, alongside revised thresholds for means-tested applications for financial support.
From October 2023, the government will introduce a new £86,000 cap on the amount anyone in England will need to spend on their personal care over their lifetime.
In addition, the upper capital limit (UCL) - the point at which people become eligible to receive some financial support from their local authority - will rise to £100,000 from the current £23,250.
As a result, people with less than £100,000 of chargeable assets will never contribute more than 20% of these assets per year. The UCL of £100,000 will apply universally, irrespective of the circumstances or setting in which an individual receives care.
The lower capital limit (LCL), the threshold below which people will not have to pay anything for their care from their assets will increase to £20,000 from £14,250.
What is included/excluded?
Only care costs are included - which means that, under the capped system, everyone will remain responsible for their daily living costs, such as rent, food and utility bills, and this will apply equally to those in a care home as to those in their own home.