What is the care cap? | Rivendell Care

What is the Care Cap?

The Care Cap

If you’re receiving care in your own home, you will be subject to slightly different regulations than care home residents. To hit the limits, only your stocks, shares and savings are counted for, not your home. Plus all the money you spend on care will be counted towards your cap; the government will fund anything outside. Similarly, if you are in a couple, then the care and living cost is shared between you.

Cap on care costs in England- how does it apply to me?

Since social care is a personal expense, many users across the U.K. have often been burdened with paying for services out of their budget. There’s been cases where care homes have overcharged, making care costs unpredictable and hard to afford for many. Those who could afford social care costs in the U.K. have faced the risk of losing a lot of their income, savings and assets.

To stop this, the U.K. government placed a cap on care costs, providing financial benefits to those receiving home care, and it applies to adults in the U.K., regardless of their age.

Cap on care costs U.K. explained.

At present a cap on your total expenditure for social care costs of £72,000 for your entire lifetime. However, a new cap comes into effect from October 2023, costing £86,000. Once you hit that, the state will intervene to help you. In addition to the spending caps, some limits have been set to help the government with a financial assessment. Here you can receive financial support towards the health care cost.

Upper Capital Limit

Alongside the cap on care costs the U.K. gov set, there are also limits. The first one is known as the Upper Capital Limit (UCL), which means you can receive financial support from your local authority. Currently, this is £23,250; however it will rise to £100,000.

What this means is if you have chargeable assets that total up to less than £100,000, you will receive financial support. This means you won’t have to contribute anything more than 20% of those assets in that given year. This limit is applied to everyone regardless of their background.

Lower Capital Limit

There is also a threshold, where if your assets are below £14,250 you won’t have to pay anything for your care. However, this will increase to £20,000 from October 2023.

How does it apply to those in care homes?

At present, both capital limits are mandatory for residents in care homes. However, adults who have care and support in settings outside a care home may be subject to different higher capital limits set by local authorities who will conduct an assessment.

However, if your capital falls below the upper limit and your local authority contributes to the cost, only the amount you contribute will go towards your cap on care costs. If you’re going into a care home, your home, assets, and savings will be taken into account.

The cap on care costs in England will not cover daily living costs (DLC) for care home residents even if the cap has been reached. These costs are set according to a national, notional amount equivalent to £200 each week as per 2021-2022 prices.

The reason for this is that these fees do not directly correspond to personal care, as utility bills, rent, and food have to be paid by all adults, regardless of where they live. The government does this to ensure that it’s fair for everyone.

How does it apply to care services at home?

If you’re receiving care in your own home, you will be subject to slightly different regulations than care home residents. To hit the limits, only your stocks, shares and savings are counted for, not your home. Plus all the money you spend on care will be counted towards your cap; the government will fund anything outside. Similarly, if you are in a couple, then the care and living cost is shared between you.

 

What counts towards the cap?

According to your personal or independent budget, if you meet the eligibility requirement for your needs stated by your local authority, then only those costs count towards the cap. In addition to the cap not covering daily living costs, top-up payments won’t be counted either. This is where a person or third party i.e. a relative, makes additional payments for an upgrade to accommodation, furnishings or specific care arrangements.

To know more, please visit the U.K. Government’s page on capping adult social care costs.

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