The Dilnot Commission has published its report into long term care funding, the highlights are:
A maximum lifetime care contribution of between £25,000 and £50,000 with a recommendation that £35,000 would be the correct figure.
A £7,000 to £10,000 contribution towards 'Hotel Costs' if in residential care.
A £100,000 capital disregard as against the current £23,250.
Changes to be in place by 2013.
All excellent in theory, but with a projected cost of £1.7bn rising to £3.5bn after five years could the country afford it. My guess is not at the moment.
Dilnot thinks that the burden of the costs should fall to those already in retirement, but with £1,7bn being equal to a penny on income tax globally, and relatively few people in retirement paying tax would any government dare to make all its taxpaying pensioners into higher rate taxpayers in one fell sweep. Political Suicide.
Dilnot says that implementing his reforms would bring certainty and peace of mind to those thinking of future care prospects - he even suggests that you could insure against the cost of care in the future.
Interesting ideas - Good Media fodder, time will tell if the coalition are brave enough to see this through.