The care costs cap has now been scrapped!

And the announcement from Rachel Reeves is that there are now no further plans to change the current rules surrounding care funding.

The consideration and conversation that has been going on now for nearly 5 years as to whether there would be a lifetime cap on the amount you would pay for social care (which was proposed to be set at £86,000) is officially over – things are staying exactly as they are.

This now means that anyone with assets over the current upper limit of £23,500 will still have to use those assets to self-fund their care.

Anyone with assets below £14,500 will have their care provided for them.

The range in between will see a £1 a week contribution being required for every £250 you have between the 2 thresholds, so essentially a maximum contribution of £36 a week.

This applies to England and Northern Ireland only with the 2 thresholds in Scotland being £32,750 upper and £20,250 lower and in Wales it’s £50k for both thresholds.

If you own a property therefore, we strongly recommend the consideration of setting up a specialist bespoke Trust for your property which, so long as you have complied with the rules concerning deliberate deprivation of assets, will ensure that, should the time come when you may need care, your property will not be taken into consideration.

Our Trusts are specifically designed to avoid traditional tax considerations on properties over £325,000 and at the same time, due to the way they are structured, mean that the increased inheritance tax allowance (Residential Nil rate Band) will not be lost either.

Give us a call on 0800 668 11 64 to find out more about how these valuable protection instruments might be able to work for you and your family.