Andy Hopper, Independent Financial Adviser and Long-Term Care Specialist at Manning and Company, answers questions about the cost of residential and nursing care.
Andy, there have been announcements in recent months
about changes in funding for residential care. What have these been about?
The government has
been looking at ways to reform the rules for residential and nursing care
funding. They have been guided by the
Dilnot Commission Report, published in 2011. Amongst other things, the Report proposed capping the costs which
individuals would have to pay for their care. This is good for those with assets, as it limits the amount they would be
expected to pay; and also means that their home would not necessarily have to
be sold to fund care.
So what is the current situation?
From 2017 anyone with
assets (including their home) worth more than £123,000 will have to pay for the
first £72,000 of their care costs. Additionally
they will pay “bed and board” of up to £12,000 annually when in a nursing home.
