Social Care reform: your questions answered
What changes are the Government making to how people pay for social care?
The Government is changing the way people in England pay for social care.
Most people have to pay for social care. Right now, there is no limit to how much money you might have to pay. One in seven people aged over 65 face care costs of over £100,000.
Changes are being introduced to make the system fairer.
From October 2023:
- No one will have to pay more than £86,000 for their personal care costs.
- Individuals with less than £100,000 in savings and assets are likely to be eligible for help from their local council with their care costs. Currently only those with less than £23,250 are eligible for state support.
- More people will be able to ask their local council to arrange their care for them to give them a choice of better value care.
For more information visit the Government's paying for your care page.
When will these changes take place?
These changes will begin in October 2023. Any care costs incurred before this time will not be counted towards the cap.
How much will I have to pay for my care?
Most people have to pay for or contribute towards their social care. But more people will now be eligible for state support with paying for their care costs.
How much you pay for your care overall depends on the level of care you need, and how much money and assets you have.
Your care costs will typically be made up of your:
- Personal care costs for help with tasks such as dressing, bathing, going to the toilet.
- Daily living costs, if you live in a care home, such as food, rent, accommodation costs, and energy bills.
From October 2023 the amount you have to pay for your personal care costs will be capped at a maximum of £86,000, making it easier to plan ahead particularly if you need long-term care. This is equivalent to around three years in care.
If you are in residential care, your cost of living is not included in this cap. If you ask the local authority to commission your care, they will need to provide you with options where Daily Living Costs are no more than £200 per week. You can choose to pay more than this, if, for example you would like a nicer room.
Am I eligible for financial support with care costs?
If you – or someone you care about – needs social care support, then the first step is to contact your local council.
The local council will carry out a care assessment to see what care you need, and a financial assessment to work out how much you will pay.
Depending on how much you have in savings and assets, you could be eligible for some financial support from your local council. From October 2023 if you have:
- More than £100k in savings and assets: You will be expected to meet the full cost of your care until you reach the £86k cap.
- Between £20k and £100k in savings and assets: Your local council will assess what you can afford to pay from your savings and assets and may pay for some of your care. If you cannot afford to pay from your income, you will be expected to contribute up to £1 in every £250 from your chargeable assets above £20,000.
- Less than £20k in savings and assets: You won’t have to pay anything towards your care from your assets. However, you may still need to contribute from your income.
What’s included in your assets depends on your circumstances. If you or your partner still live in your home, the value of your home will be protected and won’t be included in the assessment. However, you may need to use some of your housing wealth to pay for your care if you move into a care home and your house is left empty.
Does this mean I no longer need to sell my home?
Currently there is no limit on how much people have to pay for their care. Until now, people have faced unpredictable costs and have not known whether they will need to sell their home to pay for them.
The reforms will help people plan for care costs so that they can choose to entirely protect their home in their lifetime and in the future. It caps the amount they will need to spend on their personal care costs. If you or your partner still live in your home, the value of your home will be protected. However you may need to use some of your housing wealth to pay for your care if you move into a care home and your house is left empty.
If this happens, under the new system, local authorities will continue to offer deferred payment agreements. This is where the council pays for your care bills and you repay the cost later when you choose to sell your home, or after your death.
This means you will not be forced to sell your home during your lifetime to pay for care.
Government is working with partners to review the existing scheme in order to provide more flexibility for people to defer their care payments.
Ask your council if you’re eligible for a deferred payment agreement.
What benefits might I be entitled to?
If you or someone you love receives care you may be entitled to certain benefits. Depending on your circumstances this could include:
- Attendance allowance
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Carer’s Allowance
- Council Tax Support
