Last autumn the Government announced its plans to reform adult social care in England. Under these reforms the Government are looking to introduce a lifetime cap from October 2023 of £86,000.00 on the amount any one will need to spend on personal care over their lifetime.

 

In addition, the point in which someone is eligible to receive some financial support from their local authority will increase from the current level of £23,250.00 to £100,000.00. As a result of these reforms people with less than £100,000.00 of chargeable assets will not have to contribute more than 20% of these assets per year. The lower capital limits below which people will not have to make any contribution towards their care will increase from £14,250.00 to £20,000.00.

 

More recently the Government have allowed people receiving means tested support to keep more of their own income following the announcement to unfreeze the Minimum Income Guarantee for those receiving care in their own homes and Personal Expenses Allowance for care home residents, so that from April 2022 they will both rise in line with inflation.  The Personal Expenses Allowance will rise to £25.65.

 

The rates of the Savings Credit disregard will increase in line with inflation from up to £5.75 per week to £5.90 per week for an individual and from up to £8.60 per week to £8.85 per week for couples.

 

For the next financial year 2022/2023 the rates of the Minimum Income Guarantee will increase in line with inflation where the adult concerned is:

 

  • responsible for, and a member of, the same household as a child, the amount of £86.20 in respect of each child;
  • a single person and –
  • is aged 18 or older but less than 25, the amount of £74.60;
  • is aged 25 or older but less than pension credit age, the amount of £94.15;
  • has attained pension credit age, the amount of £194.70;
  • a lone parent aged 18 or over, the amount of £94.15;
  • a member of a couple and –
  • one or both are aged 18 or over, the amount of £73.95;
  • one or both have attained pension credit age, the amount of £148.65;
  • a single person who is in receipt of, or the local authority considers would, if on receipt of income support, be in receipt of –
  • disability premium, the amount of the applicable premium is £41.55;
  • enhanced disability premium, the amount of the applicable premium is £20.30;
  • a member of a couple and one member of that couple is in receipt of, or the local authority considers would, if in receipt of income support, be in receipt of –
  • disability premium, the amount of the applicable premium is £29.60;
  • enhanced disability premium, the amount of the applicable premium is £14.60;
  • in receipt of, or the local authority considers would, if in receipt of income support be in receipt of, carer premium, the amount of the applicable premium is £44.55.

 

Our Wills and Life Planning Department are able to assist on any enquires in respect of local authority Deferred Payment Agreements (DPAs) and more general queries in respect of funding long term care.  For further information please call 01206 835261 or email [email protected].