Personal Finance

Care cost limit of £72,000 ‘won’t help most pensioners’

A GOVERNMENT cap on care costs designed to protect elderly people’s assets could benefit far fewer pensioners than previously thought.

The Institute and Faculty of Actuaries found that only one woman in seven and one man in thirteen will reach the £72,000 limit on care costs that triggers government assistance, even though many will spend substantially more.

That’s because many care-home costs are not included in the calculation. 

“Much of what people pay for care will not be covered by the cap,” the Daily Telegraph reports. “That includes not only bed and board fees for those in nursing homes but also a significant slice of the direct care costs for those who have to pay their own bills. 

 The actuaries’ report says that most people will die before running up sufficient costs to qualify for government support. Those who do exceed the £72,000 threshold will, on average, pay £140,000 on their own care, with some spending as much as £250,000.

 The Department of Health said the changes will mean that elderly people will no longer have to sell their homes in their lifetime in order to pay for care. 

Recommended

Personal Finance

Pound soars as investors ‘bet on Conservative election win’

Personal Finance

Remortgaging: should you stick with your lender or switch?

Personal Finance

Is household debt leading us to a new financial crisis?

Personal Finance

Three alternatives to pensioner bonds for your savings