Social care funding consultation planned after Tory climbdown on ‘dementia tax’
Ministers are to consult on reforming the system of social care funding in England after effectively abandoning controversial changes set out in the Conservative General Election manifesto.
The manifesto proposal to scrap the planned £72,000 cap on care costs – quickly dubbed the “dementia tax” by opposition parties – was seen as one of the key factors behind the party’s disastrous showing at the ballot box, despite a dramatic mid-campaign U-turn by Theresa May.
Under the original Conservative plan, the cap would have been replaced with a “floor”, with nobody with assets of less than £100,000 having to pay for their care.
However, for the first time in the case of people being treated in their own homes, the value of their property would be included in the valuation of their assets.
The Conservatives said no-one would be forced to sell their home during their lifetime to pay for their care, although the costs would be recoverable from their estate after they died.
The Queen’s Speech acknowledged that with the number of people aged 75 and over expected to increase by 70% between 2015 and 2035, the issue of the future funding of social care must be addressed.
However it offered no specific proposals for change, and simply promised to “work with partners at all levels” and to “consult on options to encourage a wider debate”.
Simon Bottery, of the charity Independent Age, said they were “enormously disappointed” that the speech included only a “passing mention” of social care.
“Social care was a critical issue during the election and now, despite promises of a ‘consultation’, it risks being swept under the carpet and ignored,” he said.
“Social care is in crisis, and, while the care system desperately needs more funding, we also need a comprehensive review of how we deliver social care in the future.”
The PM’s official spokesman told a Westminster briefing the “very wide consultation” would include the “concept” of a floor, and a cap on care costs.
He said: “The Prime Minister has set out that with an ageing population, it’s a huge challenge which we all have to face up to. There will be a very wide consultation.
“One thing which it will look at is the concept of a floor and a ceiling.”
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