Later life care may cost £1,000 a week

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How are the government expecting us to pay a thousand pounds per week for later life care? – Coronavirus has made the country’s broken social care system an important political subject, one that urgently needs solving. As with all complex political subjects, the solution will be far from simple.

Recently, the government has declared that it is considering a “new approach” to the care funding crisis. They are considering taxing the over 40s more through the National Insurance system.

This is the latest in a long line of solutions suggested by various governments over the years. Do you remember the so-called ‘dementia tax’ preceded by the ‘death tax’, solutions that were floated by governments before being gunned down by the opposition?

In 2018-19, local authorities spent over £22bn on social care. While this might sound considerable, it’s actually less than what was spent 10 years ago. And this is against a backdrop of an elderly population with rising care needs.

Many don’t expect to need care, but the costs are real

Current figures suggest that around 70% of older people receive and need some sort of care. Even more require it, but are not receiving the support they need.

Care requirements range from an hour’s assistance at home to full time nursing home care. As a result, the costs can vary dramatically.

It is estimated that the hourly rate for at-home assistance is around £20. There may also be additional equipment costs depending on individual needs.

Those who live in care homes full time without government assistance pay an average of £645 a week for basic residential services. However, specialist care costs more. Dementia care in a specialist home comes to around £900 a week. The costs vary between regions – eg in the East of England the average bill for this type of care was £1,060 a week.

How is care funded?

Care is funded by the State, and support is on offer, but only for those with total capital assets worth less than £23,250. Varying limits and rules apply in Wales, Scotland and Northern Ireland.

When a person requires care, the local authority will assess them based on the value of their total assets, including property. Once this assessment is completed, the authority will inform the person of the amount they will need to contribute to their care.

Currently, less than a third of those who need care are fully funded by their local authority.

Over the years, the cost of long-term care can easily rise into the hundreds of thousands, yet barely a third of over 55s have plans to cover these costs.

How will you be funding your Later Life Care?

Planning for your future

Landmark Financial Planning can assist with your Financial Planning needs. In today’s complex world of financial uncertainty, we follow proven investment principles when creating your portfolio. Our aim is to produce returns that meet your goals at an acceptable level of risk. Please get in touch with us if you would like to discuss your financial planning needs further.


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