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Tuesday, November 30, 2021

Sir Andrew Dilnot: Care price cap architect says change will hit poorest the toughest and create north-south divide | Politics Information

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The economist who got here up with the concept of capping social care prices has stated the federal government’s plan to vary how the cap is reached is “not welcome” as it would hit the poorest hardest.

Sir Andrew Dilnot advised Sky Information the change will even create a north-south divide in England and he doubts the federal government has allotted sufficient further funding for means-testing.

The federal government introduced on Wednesday it was introducing an amendment to the Care Act so solely the quantity an individual personally contributes to care prices will depend in the direction of the £86,000 lifetime cap on care prices introduced in September.

Sir Andrew first proposed a cap on social care prices a decade in the past

From October 2023, individuals with belongings of as much as £100,000, as a substitute of the present £23,250, will likely be eligible for some means-tested monetary assist on a sliding scale.

However the brand new plan means any monetary assist an individual receives from an area authority is not going to depend in the direction of the £86,000 whole.

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Sir Andrew, who proposed a cap in a report 10 years in the past, advised Sky Information: “It could imply those that are much less effectively off will hit the cap after for much longer than those that are higher off and can find yourself having to spend, if they’ve a protracted automobile journey, as a lot of their very own cash as people who find themselves a lot better off.

“I believe the federal government deserves credit score for taking motion right here as many governments haven’t however this explicit change has come as a shock.

“I believe it isn’t welcome and does have the impact of being much less beneficiant to the much less effectively off.”

He earlier advised the Treasury Choose Committee that round 60% of older individuals who find yourself needing social care have belongings lower than £186,000 and about 30-40% lower than £106,000.

Sir Andrew stated individuals with important care wants and belongings of £106,000 will likely be hardest hit by the cap modifications, however it is not going to make a distinction to anybody with greater than £186,000.

The economist additionally advised Sky Information he thinks the change will create a north-south divide as a result of it would have an effect on individuals with decrease worth belongings and there are extra individuals with decrease worth homes within the North than within the South.

However, requested if the plan would drawback these within the North, Boris Johnson stated: “No. It is a large enchancment for everyone in the entire nation as a result of what we’re saying is for the primary time in historical past, we’re stopping individuals having to pay limitless portions for his or her care.”

File photo dated 18/05/17 of an elderly man
The change would imply a north-south divide, Sir Andrew stated

Sir Andrew added that his suggestion 10 years in the past was that the means-testing system to supply care funding for these with decrease belongings wanted to be adequately funded.

“There’s an actual doubt that the federal government, to this point, has allotted sufficient further funding for the means-testing system, that is below huge pressure throughout the nation,” he stated.

Labour has referred to as the modification, which must be voted on by MPs, “a good greater con than we initially thought”.

MPs might vote on the modification as early as subsequent week.

The federal government additionally introduced in September that individuals with belongings lower than £20,000 wouldn’t need to contribute something to their care (up from £14,250).

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