Reforms to Care Funding and Care at Home: Briefing Paper

  • Published 30th Oct 2013
  • Authors: Hannah Aldridge,
  • Category: Services

This briefing paper provides an overview of how pensioners pay for the cost of care when they live in their own home (not just a home that they own, but anywhere that is not a residential care home). It compares the current system with the proposed system that will be introduced in April 2016.

It mainly focuses on how the system works in England and the issues of affordability and uncertainty which arose in the Affordability of Retirement Housing the UK report.

It shows that for people requiring residential care, who face much higher care costs and the possibility of having to sell their home, the new system will provide much more certainty than the current one. But in terms of care at home the proposals confirmed so far make little difference as it is only those whose care needs later escalate, possibly resulting in a move to residential care, that are likely to ever reach the cap.

At the onset of a care need pensioners will continue to face depleting their savings or coping on an income as low as £170 per week low income for at least the short-term.