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Labour breaks ranks to brand Dilnot cap on care costs a 'con trick' Labour breaks ranks to brand Dilnot cap on care costs a 'con trick'
(about 2 hours later)
Labour has broken with the cross-party consensus over the Dilnot cap for social care, branding the government's bill to ensure older people do not have to sell their homes to meet their care bills as a "con trick".Labour has broken with the cross-party consensus over the Dilnot cap for social care, branding the government's bill to ensure older people do not have to sell their homes to meet their care bills as a "con trick".
Liz Kendall, Labour's care spokeswoman who sits in the shadow cabinet, said that after the opposition had analysed the new arrangements it was "plainly obvious families will face losing even more of their homes than they do now".Liz Kendall, Labour's care spokeswoman who sits in the shadow cabinet, said that after the opposition had analysed the new arrangements it was "plainly obvious families will face losing even more of their homes than they do now".
Kendall, an acknowledged parliamentary expert on social care who sat in on the cross-party talks, said government claims of limiting social care costs to £72,000 were not true. She said the way the cap had been constructed meant "most elderly people in care homes will die long before they ever reach the cap. Families deserve to be told the facts so they can properly plan for the future, and not have the government attempt to pull the wool over their eyes."Kendall, an acknowledged parliamentary expert on social care who sat in on the cross-party talks, said government claims of limiting social care costs to £72,000 were not true. She said the way the cap had been constructed meant "most elderly people in care homes will die long before they ever reach the cap. Families deserve to be told the facts so they can properly plan for the future, and not have the government attempt to pull the wool over their eyes."
At the heart of the policy, says Kendall, is that the cap only applies to payments for care at council rates. At the heart of the policy, said Kendall, was that the cap only applied to payments for care at council rates.
By 2016 when the cap comes in, local authorities will pay about £500 a week for residential care and "hotel costs" (essentially food and accommodation). Hotel costs are limited to £12,500 a year or £240 a week, leaving £260 for care costs. By 2016, when the cap ctakes effect, local authorities will pay about £500 a week for residential care and "hotel costs" (essentially food and accommodation). Hotel costs are limited to £12,500 a year or £240 a week, leaving £260 for care costs.
At that rate it would take about five years to reach the £72,000 cap, at which point the government will step in and pay the £260 a week as a care subsidy.At that rate it would take about five years to reach the £72,000 cap, at which point the government will step in and pay the £260 a week as a care subsidy.
However, that is about twice as long as the average stay in a care home. And anyone paying more than the local authority rate will have to pay the extra themselves, before and after the cap is reached – which won't count towards the £72,000.However, that is about twice as long as the average stay in a care home. And anyone paying more than the local authority rate will have to pay the extra themselves, before and after the cap is reached – which won't count towards the £72,000.
Kendall warned that this will affect "125,000 people who fund their own care fully and pay on average between £50 to £140 more".Kendall warned that this will affect "125,000 people who fund their own care fully and pay on average between £50 to £140 more".
In the commons she warned Tory MPs that they would offer a false prospectus to their voters, "particularly in the south and east of England. Government members should take heed of that point, because if they tell their constituents that there will be a finite cap on their care costs, they will be sorely disappointed." In the Commons, she warned Tory MPs that they would offer a false prospectus to their voters, "particularly in the south and east of England. Government members should take heed of that point, because if they tell their constituents that there will be a finite cap on their care costs, they will be sorely disappointed."
Many analysts have come to the same conclusion as Kendall, saying that in principle the Dilnot cap was a good idea but that cheese-paring by the Treasury has meant it is less effective than when first floated. James Lloyd of the Strategic Society Centre said: "It has not sunk in with a lot of Tory MPs yet that this won't work. They had been sold the idea of a cap as a solution to a market failure. Take away the catastrophic risk of care bills of £100,000 and you'd get a market in insurance developing. But it's clear that this will be extremely unlikely to be the case." Many analysts have come to the same conclusion as Kendall, saying that in principle the Dilnot cap was a good idea but that cheese-paring by the Treasury has meant it was less effective than when first floated. James Lloyd of the Strategic Society Centre said: "It has not sunk in with a lot of Tory MPs yet that this won't work. They had been sold the idea of a cap as a solution to a market failure. Take away the catastrophic risk of care bills of £100,000 and you'd get a market in insurance developing. But it's clear that this will be extremely unlikely to be the case."
A spokesperson for the care minister, Norman Lamb, said: "Labour had waited years to do something about social care and did very little. In government we are implementing the Dilnot cap."A spokesperson for the care minister, Norman Lamb, said: "Labour had waited years to do something about social care and did very little. In government we are implementing the Dilnot cap."