The announcement by Theresa May that a Conservative government will increase the capital limit from £23,250 to £100,000 will be welcomed by many. But at what cost?
This is to be funded it seems from a requirement for much greater contributions towards the cost of non-residential care.
For many clients, this policy - when combined with appropriate estate planning - may take them out of scope of funding the full cost of their care.
It is still some way short of the recommended limit of £118,000 which is presently due to come in to force in 2020. Not that any one really believes this will ever come into force at all!
The policy will be a flagship measure in the Tories’ election manifesto, which the prime minister will pitch as a programme for solving some of the challenges facing Britain. It means wealthier people with more than £100,000 in assets will have to pay for their own elderly care out of the value of their homes, rather than relying on the council to cover the costs of visits by care workers.