Most won’t reach the cap

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Most won’t reach the cap

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The planned cap on the cost of residential care will help only a small minority of elderly men and women according to a report recently issued by the Institute and Faculty of Actuaries.

The report suggests that just 8% of men and 15% of women entering care aged 85 are expected to reach the £72,000 cap that is due to be introduced in 2016.

Under the proposals, a person’s care home fees will effectively be split into 3 parts – a daily living cost, a Local Authority set cost and a top-up care cost.  The individual will pay for all 3 elements until the cap is reached and then they will have to continue to pay the daily living costs and top-up care costs once they have reached the cap.