The new Dilnot report is a step forward in dealing with the issue of care funding for our ageing population. As it acknowledges having to sell your house to fund your own care is unacceptable to many of us. A cap on funding of £35,000 sounds fair to many.
But and there is a big but, will the government take the report seriously? Or kick the report off into the long green grass? No doubt everyone can remember Cameron saying that the Inheritance Tax Threshold should be £1 million!
The figures within the report indicate that a person needing care (if the report’s findings are implemented) should only have to use 30% of their assets for their care. This would mean that they will be in a position to pass some of their assets onto their families.
The report does not I think take into account that there have always been people who never paid for their care, and never will. Currently the government is trying to get the “workshy” off benefits and into work. If these people do not become part of the workforce, the bill for their care will fall on the rest of us.
I am of the view that if report had come out during the “boom times” it may have received a more positive response. Whilst many organisations who work with the older population thought of the sea-change it represented. Many who deal with funding issues are wondering, was the core proposal affordable?
Having worked in the field of Private Client I have spent my time in putting in place tax efficient legal solutions. Until a decision has been made as to whether the Dilnot Report presents a feasible way forward. I am of the view that it is the responsibility of us all to try and put in place our own “safety net”.