Protection  

UK’s first ‘long-term care cap calculator’ launched

Not-for-profit website PayingForCare.org has launched the UK’s first ‘care cap calculator’, as debates continue over the implementation of the Care Bill that will introduce a £75,000 cap on long-term care costs.

With 57 per cent people in residential care funding all or part of their own long term care fees, the website said this tool will help individuals to understand how much they will personally have to pay - and for how long – before they reach the Dilnot model cap in the new legislation.

Currently, 24 per cent of self-funders deplete their assets to such an extent that they ‘fall-back’ on state support, at a cost of £425m in 2011/12.

Article continues after advert

The calculator uses factors such as the region that the person lives in, the level of care that they may need, their available assets and the expected level of state funding to determine what financial provision they need to make.

Key information will include how much they will have to pay before they reach the cap, how many years it is likely to take before they reach it and how much they will still need to pay once they have reached the cap.

The calculator’s launch follows a call for further consultation on the implementation of the Care Bill by Norman Lamb MP, minister of state for care and support.

Earlier this year, Jeremy Hunt, health secretary, unveiled a £75,000 cap on long-term costs, meaning the government will pay for care costs incurred over this level. This is considerably higher than the £35,000 to £50,000 figure proposed by Andrew Dilnot in his white paper on reforming the funding of long-term care.

Chris Horlick, chairman of PayingForCare.org, said: “Many people find that navigating the care funding system can be confusing and difficult. We have developed this calculator which provides people with an indication of what they can expect to pay and for how long under the proposed care cap model.

“This is a particularly useful tool as the results can also be discussed with a specialist regulated care fees adviser who can provide guidance on how to structure their finances most appropriately to meet the cost of care.”