Elderly could face £60,000 care bill

Tuesday, 17 January 2012

Millions of pensioners could be forced to pay up to £60,000 in care bills under plans being considered by ministers.

The Government has previously been advised to set a £35,000 cap on the amount an elderly or disabled person should pay for care over their lifetime.

But a new report from a Department of Health working group has recommended pushing the boundary up to between £50,000 and £60,000.

Under the new advice, working adults will be told to take out private insurance or release equity from their home to cover the cost of future care home fees and old age.

The Government would also launch a national campaign urging workers to prepare for elderly costs through pension schemes or buying a home which could later pay bills.

A decision on the cap could be announced in April, when Health Secretary Andrew Lansley publishes a White Paper on the future of social care.

Mr Lansley, Liberal Democrat care services minister Paul Burstow, Andy Burnham and Liz Kendall - Labour's health spokesmen - are due to take part in care funding talks this week.

There is currently no limit on the costs that elderly people can rack up for their care - with an estimated 20,000 forced to sell their home to pay for residential places.

One in 10 pensioners face care bills of more than £100,000, with those with assets of more than £23,250 receiving no financial help from the Government.

A proposed cap could change this, allowing private insurers and pension providers to develop new products to protect working adults from costs in old age.

The Department of Health working group also recommended campaigns to raise awareness of costs and an information drive to highlight the importance of planning for retirement.