Elderly care – help in paying bills shock!

A report from the Institute and Faculty of Actuaries (IFoA) states that the cap on the cost of elderly care in England is not what people are expecting and says that individuals seeking financial assistance are in for a shock!

The report states that the £72,000 limit on what people will have to pay will benefit just 8% of men and 15% of women. It confirms that as the proposed cap, to be introduced in 2016, is on direct care costs only individuals will spend around £140,000 before they reach this limit.

One of the IFoA report’s authors, Thomas Kenny, said: “Anyone who is expecting that the cap will pay for care is in for a shock. The cap is there to protect against catastrophic care costs and we estimate that few people entering care aged 85 years will reach it.” The IFoA said that because the cap did not cover accommodation and living expenses – but rather the amount a local authority pays for care – an elderly person could be expected to spend £140,000 on average before qualifying.

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