The new system introduces a cap of £72, 000 on the costs of care before the Government starts to contribute towards the costs. Crucially the costs of care exclude the costs of accommodation and food which represent approximately 51% of current care home fees. Prestige Nursing Care estimate that the real cap is £134,159, and on that basis 92% of men and 85% of woman will pay the whole cost of care.
In the North East an individual would it is estimated have to be in care for a period of over 5 years and 350 days before the Government contributed at an overall cost to them of £143,555.
The likely reality is that whilst your house will not be sold until you die to pay your costs, its value as an inheritance to your family will be diminished by the costs of care and the interest charged on the outstanding fees.
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To talk to us in more detail, Jane is available to speak to at Harrison Hutchinson Accountants in Whitley Bay on a Tuesday from 9.30am - 3.30pm