November 2021 Social Care Reform

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Chestnut Financial Services

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What Does The News In November 2021 On The Social Care Cap Mean For Everyday People?

The government published proposals on 17 November 2021 that the benefits people use to help pay for care will not be included in its incoming cap on care costs, which will hit the poorest savers the hardest.

When the government introduced the new proposals to apply to care from October 2023 they said no one would pay more than £86,000 for care. However,  that limit of £86,000 only relates to paying for “components of any care package considered to be related to personal care”. So the cap will not cover daily living costs such as rent, food and utility bills, whether in a care home or living in their own home. Only the money a local authority assesses a person as needing to spend on care will count towards the cap.

The government has introduced a limit to what it calls “daily living costs”, set at £200 a week, for life or until their assets are eroded far enough to qualify for help.

From October 2023 the upper capital limit will rise to £100,000 from the current £23,250 and the lower capital limit will increase to £20,000 from £14,250. Anyone above the upper limit will be expected to pay for their care themselves whereas people below the lower threshold will only contribute as much as they can afford.

Whilst the government promised no one would have to sell their home to pay for their care, the reality is that the home will be an important asset taken into account by local authorities. The changes mean that a lot more people will be paying far more towards the cost of care than they may have expected.

There’s also bad news for those who want a higher level of care, because the local authority will assess how much care you need, and only this spending will count towards the cap. If you pay for additional care to make life less difficult, such as longer visits in your home, or amenities in your care home, none of this will count towards the care cap.

What It Means To Be SOLLA Accredited

We have been advising clients on long term care solutions for several years now, backed up not just by professional qualifications but also by the membership of various professional bodies, most notably the Society of Later Life Advisers (SOLLA) and the Personal Finance Society, so we specialise professionally in care fees all the time.

We are proud that Ian Francis is an Accredited adviser with SOLLA. Clients requiring financial planning in their later life benefit from advice that is clear and concise. Such advice comes from an adviser that is suitably qualified and experienced to advise them and manage their financial planning.

What's On Your Mind? Let's Talk...

We offer a free, no-obligation, initial telephone consultation for new clients to answer some initial questions and help you with some first steps.

After that, we will then ask if you would like to set aside more time at a good time of day for you, when we can meet in person, on video, or by phone, whichever is most convenient for you.

If you would like to use our services after our initial telephone call then we charge an hourly fee of £150, including travel time. We can also agree on a fixed fee depending on what you need.

So, contact us today:

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Important Information

Care fee plans do not guarantee to cover the full costs of the client’s care, care costs are subject to inflation and care needs may increase.

If the cost of care exceeds the income from the plan you will be responsible for paying the difference yourself.

Plans cannot be cancelled or cashed in at any time after the first 30 days.

If the income is paid directly to a registered care provider, the plan benefits from a favourable tax treatment.

Should this tax treatment be changed by HMRC or income be paid to a party other than a registered care provider, some of the income may be subject to tax.

Please note not all care fee advice is regulated by the Financial Conduct Authority.

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Chestnut Financial Services Limited

2a Sadler Court



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The guidance and/or advice contained within this website is subject to the UK regulatory regime. It is therefore targeted at consumers based in the UK. Chestnut Financial Services Limited. Registered in England no 9918363, 2a Sadler Court, Lincoln, LN6 3RG. Authorised and regulated by the Financial Conduct Authority.