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What will care really cost?

Please note when reading the article below that the Government had planned to introduce a cap on care costs. It was suggested that there would be a cap on the maximum amount of care costs someone has to pay during their lifetime, which would be £72,000 for those of retirement age. However this has been postponed until 2020 at the earliest, and there is no certainty that it will ever come into effect.

What will care costs really look like after 2016? Week 3 of our "Digestible Dilnot" series explores how much our parents might have to pay towards their care in years 1, 3 and 5.

As a reminder, the UK government is proposing massive social care reforms as of 2016. These proposals are based on the Dilnot Report submitted to the government in 2012. These reforms aim to cap the amount our parents (and indeed we in the future) will pay for care.

At first glance it looks like we'll only have to pay £72,000 for care post 2016. This week our graphic demonstrates that plainly saying the cap on care is £72,000 is just way too simple, and we show how we could have to pay considerably more than this. We look at our parents annual costs in years 1, 3 and 5.

What will care really cost

If you've established that your parent is deemed worthy of the care cap, there are 4 factors you should take into account when considering their overall costs:

  1. The cost of their chosen care home
  2. What they can claim for “nursing” care
  3. The “board and lodgings” or “hotel” costs of £12,000 that the government has said will be expected to sit outside the cap
  4. The figure the state deems is an acceptable amount to pay for an approved care home in your area. Your parent will have to pay the difference or chose another home.

To visualise this, we are taking fictitious figures based on typical 2013 scenarios. This is just to demonstrate a principle. It does not take into account cost inflation year-on-year, nor does it take into account that 2016 figures could be considerably more than those used here.

The sum of £12,000 for “hotel” fees is based on the recommendations coming from the Dilnot figure. The nursing contribution of £108/week is also a sample real figure from 2013.

The figures needed to make your parents’ personal sums work would need to be calculated on a case-by-case basis. We're working on a free spread sheet that you can download and add your own costs to to get your very own personalised plan. Coming soon!

Find out more

Read the Dilnot report in full.

Get more facts at Fullfact.org. These statistics are based on a simulation model from three leading universities (LSE, York and Kent)/ Whilst the statistics are not official this model is quoted by both Andrew Dilnot and Jeremy Hunt, The Secretary of State for Health.

We would love your feedback as to whether you have found these infographics helpful. Let us know with a comment below.

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