Social care costs cap could feature in Green Paper

Proposals for a social care costs cap could feature in the government’s Green Paper, according to a press report.

The Express reported that Health and Social Care Secretary Jeremy Hunt was in favour of the cap which would help elderly people keep their home.

The proposals also include introducing a floor for social care funding where a person’s payments will be made by the government when they fall to a certain level.

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Former pensions minister Sir Steve Webb said: “Where you live in the country will really matter.

“If you live in an expensive house in the south of England, you want a cap and if you own a cheaper home in the north of England you want to see a floor.

“If your house is worth £400,000 a floor of £100,000 is no use to you, because you could spend £300,000 on care costs.

“Conversely, if your house isn’t worth much more than £100,000, then you want to hit the floor as quickly as you can.”

If approved by the Treasury, the ideas are set to be included in the government’s Green Paper which has been delayed until the autumn (see Government postpones Green Paper until the autumn).

Former pensions minister Baroness Altmann has suggested young people pay an extra penny of national insurance to fund the costs, with the over 50s contributing from savings, pensions or home value by putting their money in a care ISA.

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