Care Act 2014 Update: Government Delays Care Cap Until 2020

One of the Government’s election manifesto pledges to cap the cost of care at £72,000 for the elderly and young adults with disabilities has been delayed by four years. The cap – recommended by the Dilnot Commission – was originally scheduled for introduction in April 2016, but it has been deferred until 2020.

The delay was requested by the Local Government Association in order to meet shortfalls in the cost of the current social care system. Reportedly, the gap between demand for services and resources is growing by £700 million a year, and is forecast to be at least £4.3 billion by 2020.

Under the current system, those with assets above £23,250 do not receive financial help from their local authority. Under the cap, this threshold increased to £118,000 meaning that around 35,000 people would have benefited immediately. Around 10% of people who receive such care pay more than £100,000.

It must be remembered that the cap did not cover the entire cost of care. The cap relates only to direct care costs and is to be applied at the local authority rate. What this means is that you would still have to pay for the cost of your accommodation, which the government estimates at £12,000 a year (but could be as high as £17,000). If your care home charges for care at a higher rate than the local authority, then your actual care costs would be higher.

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