Government's 'sneaky' changes on social care costs will 'hit poorest pensioners hardest'

18 November 2021, 00:17

The government has changed the rules on social care cap
The government has changed the rules on social care cap. Picture: Alamy

By Megan Hinton

England's poorest pensioners face paying more in social care costs after the government "sneaked out details" on the new cap on home and care costs.

Listen to this article

Loading audio...

The proposals, which will be voted on by MPs next week, state only the amount that individuals directly contribute to their social care costs will count towards the lifetime cap of £86,000.

Means-tested money received from the state or financial support for care from the local authority will not count as part of the key reform which was announced earlier this year.

This is to ensure that people "do not reach the cap at an artificially faster rate than what they contribute", the Department of Health and Social Care (DHSC) said.

But the details have been met with criticisms by some who warn the "unfair" proposals will hit the poorest pensions hardest.

The proposals could see those with less than £100,000 in assets paying a larger proportion than those with large savings.

'They are going to have to pay for their own social care'

Read more: MPs pass 'watered down' Tory plans for second jobs amid sleaze allegations

Read more: Boris Johnson: Owen Paterson did break rules and I made a 'total mistake'

A pensioner with £90,000 in assets may end up contributing the same amount for their care as someone with assets worth £500,000.

The cap will also not cover daily living costs, which will be set nationally at £200 a week to cover non-care fees such as rent, food and utility bills, the Government said.

Liz Kendall, Labour's shadow social care minster said the government "sneaked out details" adding: "It has now been revealed that the poorest pensioners will have to pay even more, something Andrew Dilnot - who proposed the cap - explicitly ruled out because it was so unfair.

"That this Tory Government has failed to be straight with those who've given so much to our country is a total disgrace, but utterly unsurprising. Our elderly people deserve better."

In a policy paper uploaded on Wednesday, the Government said it plans to amend the Care Act to ensure the new reforms are clear, subject to parliamentary approval.

It added that the "much more generous" means test that accompanies the cap will be the main way of helping people with fewer assets.

The document published on Wednesday says local authorities will start a care account for each individual eligible for or receiving care, and will monitor their progress towards the cap.

Read more: Eco mob behind bars: Judge jails protesters for M25 travel chaos

Read more: Cricket racism: Five more clubs embroiled in scandal, Azeem Rafiq tells LBC

Shelagh Fogarty's monologue on the 'bonkers' adult social care system

It says: "For individuals who receive financial support for their care costs from their local authority, it is the amount that the individual contributes towards these costs that will count towards the cap, subject to parliamentary approval."

Torsten Bell, chief executive of the Resolution Foundation, said the change will "reduce how much protection the cap provides to those with fewer assets, by making it less likely that they could benefit from the cap".

He said: "The Government is rightly making long overdue reforms to better protect the assets of those unlucky enough to need social care support, with a more generous means test and cap on total costs.

"But the Government is now seeking to change how the means test and cap interact, leaving people with fewer assets receiving far less protection than expected.

Read more: Boris Johnson faces down Tory rebellion as he wins vote on social care tax increase

Read more: Sajid Javid: Health and social care 'begins at home' not with government

"What sounds like a technical change will actually make a huge difference to how much families have to pay for care.

"The danger is that the cap on care costs will now offer little protection for poorer households' assets, while doing much more for those with significant assets - especially in the south of England. We need far greater scrutiny of such a major change."

Sir Andrew and Ms Warren are set to appear before a Commons select committee on Thursday morning to discuss the Government proposals.

More Latest News

See more More Latest News

Pamela Anderson arrives on the red carpet at the 2025 Met Gala

Pamela Anderson says filters and AI being used on photos has led to people becoming 'boring-looking'

Donald Trump has called for the "unconditional surrender" of Iran

Trump calls for 'unconditional surrender' from Iran - hours after claiming to know supreme leader's location

A man walks past empty shelves in a branch of the Co-op in Manchester following the major cyber attack.

Major UK supermarket offering 25% off £40 shops in ‘thank you’ to members after cyber attack

Cyclists are sending a record amount of video footage to police after being overtaken too closely by motorists, new figures show.

Cyclists sending record number of videos to police after being overtaken too closely by drivers, figures show

Exclusive
Suspended chief constable Nick Adderley

Disgraced police chief Nick Adderley slammed for ‘unacceptable’ role in Harry Dunn case

Grenfell tower cover in white tarpaulin

Government pressed over why Grenfell cladding ‘crooks’ not behind bars

Donald Trump is said to be considering joining Israel in striking Iran

Trump 'considering US strike on Iran' - hours after claiming to know supreme leader's location

The biggest lottery prize the UK has seen could still be won after Tuesday’s EuroMillions draw had no winners.

EuroMillions record £208 million jackpot won by single ticket holder

Referee David Coote has been sacked.

Sacked Premier League referee David Coote charged by FA over ‘German c***’ Jurgen Klopp comments

Exclusive
Relatives of the Palestinians killed in Israeli attack, mourn as they carry the bodies to Nasser hospital for funeral procedures in Khan Yunis

Israeli Ambassador denies IDF is 'targeting civilians' as medics say 59 Palestinians killed by IDF at aid distribution centre

The man given a restraining order for stalking British number one Emma Raducanu has been caught trying to obtain tickets for this summer’s Wimbledon.

Emma Raducanu stalker caught trying to obtain Wimbledon tickets after tennis star was left 'shaken' by 'fixated' man

Eight-month-old Mabli had just said a final goodbye to her paternal grandmother Betty Hall, who was receiving end-of-life care at the Withybush Hospital in Haverfordwest.

Driver who ran over and killed eight-month-old baby in pram has sentence cut

Exclusive
UK 'not going to be involved' in 'protecting' Israel during Iran conflict, Israeli ambassador confirms

UK 'not going to be involved' in 'protecting' Israel during Iran conflict, Israeli ambassador tells LBC

Abortion rights actvists gather outside the parliament in support of decriminalisation.

MPs vote to decriminalise abortion in England and Wales in historic Commons vote

New York City Comptroller Brad Lander is placed under arrest by Immigration and Customs Enforcement (ICE) and FBI agents outside federal immigration court on Tuesday, June 17, 2025, in New York.

New York mayoral candidate Brad Lander arrested and detained by ICE amid Donald Trump's immigration crackdown

Trump not planning to attack Iran, Starmer insists as US President says he won't kill Supreme Leader 'for now'

Trump 'not planning to attack Iran', Starmer insists as US President says he won't kill Supreme Leader 'for now'