Later Life  

Tories ditch long-term care cost plans

The Conservatives manifesto pledged to ditch the cap and introduce £100,000 asset ceiling, which caused an uproar and led to a very temporary U-turn.

It is now believed that the government is said to be considering auto-enrolment for a care alternative.

Gemma Siddle, chartered financial planner at Newton Aycliffe-based Eldon Financial Planning, said: “In my experience, it is not the principle of paying for their own care that worries many people but the uncertainty of whether or not care will be required, how long it will be required for and the scale of the cost should a truly long term issue arise.

"Having some certainty around this area can ease people’s worries and this is what the cap was designed to do.

"The loss of the cap brings back this uncertainty at a time when care costs are increasingly significantly faster than inflation.

"I expect we will see older generations holding onto higher levels of capital to fund this potential need, arguably at a time when it may be better brought into circulation by gifting down the generations and creating cashflow for our economy.”