The Government announced a plan to “help the elederley keep their homes” in 2013.
We said at the time that it was fraudulent, and only the PR spin had any truth in it, the actual policy would strip most people in care of pretty much everything. The only benefit – if you can call it that – is that you house won’t be sold until you are dead. The chances of any of the value of your home going to your family will be reduced by the interest charged on the loan to pay your care fee.
I don’t have anything against the Conservatives, I understand they need to balance the books. What I do object to is policies which are “sold” by any politician as being benefits when any reasonable analysis which show that is just PR spin, or in plain language, a pack of lies.
Our initial review of the policy has now been backed by by BBC reports and by the detailed review by the Institute and Faculty of Actuaries which concluded:
The care cap is there to protect against catastrophic care costs and we estimate that few people entering care aged 85 years will reach it”
Thomas Kenny Report author for the Institute and Faculty of Actuaries.
Figures show that maybe on in 12 men might reach the cap where the State starts to chip in, and less than one in 6 women will. If you prefer percentages, 92% of men will pay the whole cost of care, and so will 85% of women.
This is a shocking situation: on the one hand, there are plenty of ways for the wealthy (who are more likely to benefit from the care cap) to avoid Inheritance Tax, many incentivised by the Government, whilst those who have struggled to buy a home are penalised. This has serious moral implications, as those who spend everthying in their lifetime will be encouraged, and those who manage to buy their own homes will be penalised. Very odd indeed.