Social Care Levy

Wills and Probate

Social Care Levy – Not all it seems?

A lot of our clients are concerned about the cost of future care.  How to pay for a national care system has been a political hot potato.  Will the Government’s new Social Care Levy mean your assets will be protected?  It appears that for most people it will not.

Care changes at a glance

  • From October 2023, no-one will pay more than £86,000 in care costs (the “care cap”).
  • Once people have reached this cap, local authorities will pay for ongoing costs for personal
  • Those with assets of between £20,000 and £100,000 will get means-tested help towards costs. People in this bracket will not have to contribute more than 20% of their assets per year, but may have to contribute from their income.
  • Those with less than £20,000 in assets will not pay towards care costs, although they might still have to contribute from their income.

But, the devil is in the detail!

  • The care cap only covers care costs (such as washing, dressing - whether provided in one’s own home or in a care home), but crucially, the cap does not apply to accommodation costs. So, costs associated with food, energy bills, the physical building, people will still have to pay for.
  • Tellingly, the Government has not yet said how much people should be prepared to contribute to these living costs. Care homes don’t usually itemise them.
  • Even with the cap, people could still face bills of £1,000 per month for living costs.
  • Most people will not hit the cap: it would take the average care home resident more than 3 and a half years to hit the cap. But the average stay in a care home is around 2 years.
  • Many will not even qualify for help.

For those concerned about care costs, our Wills and Probate Team are here to take you through your options.    Many clients prefer to make use of trusts in their Wills.  Please contact us on 01562 822295 for Kidderminster Office and 01299 822033 for Stourport-on-Severn Office.