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A chief architect of plans to limit the cost of long-term care has criticised ministers for setting the cap so high that thousands of pensioners will have to sell their homes. Lord Warner is warning that if a husband and wife both move into care, they could have to pay £150,000 before the state steps in – wiping out almost the entire value of an average house....Read more here
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5corpio started a blog post £75,000 cap on cost of care will lose thousands of pensioners their homes£75,000 cap on cost of care will lose thousands of pensioners their homes
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Hundreds of people enter the care system every week in England, but there are concerns that few are ready for the expense. At present, people with assets of more than £23,000, often including the value of their home, do not get any help in paying for full-time care. Those who only need some help with everyday activities such as washing or dressing themselves will also be among these "self-funders" if they have savings of more than £23,000. About three-quarters of 65-year-olds will need care at some point in their lives, the Association of British Insurers (ABI) has said.
Yet a survey for the ABI found that half of those asked were not sure how they would pay for these care costs......Read more here
Thousands more people will have to pay inheritance tax to help fund long-awaited social care reforms in England, ministers will announce on Monday. The inheritance tax threshold is to be frozen at £325,000 for individuals and £650,000 for couples for three years from 2015. That will help to fund plans including an expected cap of £75,000 on the costs people in England have to pay for care. Campaigners say higher taxes have been introduced "by the back door". The move comes despite Chancellor George Osborne's Autumn Statement pledge, in December, to raise the threshold by 1% - to £329,000 for individuals and £658,000 for couples - in 2015/2016. Matthew Sinclair, chief executive of the TaxPayers' Alliance, said the "sleight of hand" from the chancellor was "unfairly punishing families who simply want to leave something to their relatives when they pass on".....Read more here