Late last night, the government narrowly won a majority vote to make a small amendment to Article 49 of the Health and Care Bill. The amendment has been controversial but will now become law and be effective from October 2023.
Care is made up of three elements:
What are the rules and the £86,000 Cap?
What is the Amendment to Article 49?
In the original bill, the maximum an individual (with assets below £100,000) would pay towards personal care would be capped at £86,000, this included any funding towards these costs paid by the local authority. This means that many would hit the £86,000 cap earlier with local authority support costs using up some of that cap.
The amendment removed the any local authority support being included towards the £86,000 cap meaning that we must all pay at least £86,000 towards the personal care costs (excluding any local authority support) before the cap ‘kicks’ in.
Many MPs voted against the government change as well as some conservative MPs abstaining from the vote. The majority dispute that this would hit poorer families and the less financially able the hardest. E.g. if you have total assets of £100,000, £86,000 care costs would leave just £20,000 (where the mean test limit ends) i.e. 20% of wealth retained by the family but if you have assets worth £400,000, this would leave you with £314,000 i.e. 78.5% of wealth retained by the family.