The spectre of paying huge care bills towards the end of one’s life is a dilemma for millions of people – and one that the Government has been procrastinating over for over a decade… in fact since The 2011 Dilnot Report provided David Cameron with the solution he asked for but declined to implement.

A recent opinion poll carried out by YouGov for the 76 charities who campaign together as the Care and Support Alliance has found that more than 4 in 5 (83%) want the Prime Minister to fulfil his pledge to “fix social care, once and for all”. Sadly, after appearing to be on the cusp of making the long-awaited announcement (fully two years after his historic promise to get it sorted quickly) inter-departmental wrangling in Government seems to have kicked it down the road once again.

The prospect of finding more money to fund a “cap” to care costs was obviously something a step too far for the PM and Chancellor, in spite of the pledges to remove what has been a cruel uncertainty for so many people in the intervening years. Anyone with more than £23,250 in savings is liable to pay fully for their own care if it is provided in the home or in a care setting. And while the home is ring-fenced as an asset if a family member is still residing in it, that counts as a realisable asset when a care assessment is made.

In the words of Age UK’s Caroline Abrahams: “Now we are starting to emerge from the pandemic, which has taken such a toll in social care, it’s time for the Prime Minister to stand by his word and for politicians in all parties to demonstrate leadership on an issue which should be above politics. That’s why we are calling on the public to contact their MPs, to ask them to ensure there’s real action on social care this year, not just the warm words and excuses we’re all fed up of hearing.”

Who should pay – and how much?

The argument that those with capital should pay towards their care in later life has long been accepted: the issue is whether that amount should be capped – and to how much. This would at least enable people with savings and assets to plan with more certainty, and it would also encourage the development of financial products for people to invest in and/or use as an insurance policy.

For those who do fund their own care costs and with limited assets, the costs of typically £35 – £40,000 a year there is always the unwelcome prospect of running out of funds and having to move to a care home of the local authority’s choice.

However, many people are recognising that without certainty, a potential open-ended cost to later life might mean using their biggest single asset. A new survey from Just Group shows that a large number of those in middle age and beyond are now recognising that selling their home to pay for care will not be a last resort but “Plan A”:

• More than half accept principle of using some or all of their property wealth to fund care
• More than 4 in 10 (42%) homeowners aged 45+ expect to sell property to cover care
• The report also highlights regional discrepancies: differing property values mean that London homeowners are able to fund 12 years of residential care compared to an average of just under four years in the North East.

It appears that a decision on a care funding cap might be forthcoming in the Autumn, but after years of delay, few people will be taking that for granted.

Are your plans “care costs proof”?

Those readers who subscribe to the RetireEasy LifePlan can make an allowance in their future plans for care costs, helping to ensure that – if you do need to go into care later in life – you wouldn’t run out of funds in your lifetime and be moved into a care home not of your choosing.