Don't sell home to pay for care bill

Instead of selling the home to pay for care, a new Green Paper will allow middle-class pensioners to keep their property. Currently, adults undergo a means test for long term residential care and those who have more than £22,250 in assets have to pay for themselves. It is believed that in 2008, 45,000 people had to sell their homes in order to pay for accommodation in care homes. Instead of using savings or selling their homes, the Green Paper suggests measures enabling the elderly to remain independent with the choice of how their care is provided. This includes insurance and inheritance levy proposals, and a “co-payment” model. This works as a fund to provide some care for everyone, with richer people paying top-up payments subsidising those who are less well off. A one off payment of £12,000 has also been mooted as an idea, paid at death or retirement.

Stephen Burke, the chief executive of the charity Counsel and Care, said: “It would be good news if people weren’t forced to sell their homes to pay for care but the question is how they are going to make that possible.” There is a prediction of a £6 billion funding gap for care for the elderly within 20 years.

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