Boris Johnson's care cap fails to cover care home meals or accommodation

Prime Minister Boris Johnson’s claim that no one will have to pay more than £86,000 towards the cost of their care in their lifetime has been roundly attacked, because people must still pay for their daily living costs at a care home including food, energy bills and accommodation.

MPs have voted (319 to 248) in favour of a 1.25 percentage point tax rise in National Insurance for workers and employers to fund NHS and social care.

The National Insurance tax rise from April 2022 will help fund what has been dubbed a smoke and mirrors social care reform plan from Mr Johnson, with individuals footing the bill for care home living costs even after they have spent £86,000 towards the cost of their own care.

'Have to contribute towards daily living costs'

The lifetime care cap will be introduced in October 2023 but an individual's care costs accumulated before this date will not be covered.

According to the government’s new document ‘Build Back Better: Our plan for Health and Social Care’, the care cap limits the amount people in England ‘will need to spend on their personal care over their lifetime’.

Including a case study about an elderly care home resident called Yusef, the document explains: ‘Yusuf hits the £86,000 cap after three years and four months. He no longer needs to contribute for his personal care from either his assets or his income. Beyond this, he will only have to contribute towards daily living costs.’

Once people have reached the cap, ongoing costs for personal care will be paid for by local authorities.

The government document stated: ‘For the first time, using legislation included in the 2014 Care Act, we will ensure that self-funders are able to ask their local authority to arrange their care for them so that they can find better value care’.

People with assets of between £20,000 and £100,000 will get means-tested help towards costs from their local council. People with less than £20,000 will not have to pay towards care costs from their assets, but might have to contribute from their income.

The government has said it will ensure councils pay providers a “fair rate” for care and £500m to support the workforce over the next three years.

Out of the £36bn pot raised from the government's new Health and Social Care Levy, some £30.6bn will go to the NHS to help tackle longer waiting lists caused by the Covid pandemic while £5.4bn (less than £1 in £6) will go to social care over the next three years.

Sajid Javid has said a bigger slice will be given to social care after three years. Of the £5.4bn available for social care over three years, £2.5bn will fund the PM’s £86,000 care cap.

Dilnot: Spending by State 'will count'

Care home providers have said Mr Johnson's plan fails to deliver real reforms needed in the social care system. They argue the £5.4bn available for social care over the next three years won’t be enough to fix social care.

Karolina Gerlich, chief executive of Care Workers’ Charity is among the care leaders ”outraged” that only a very small proportion of the money promised will go to social care.

During Prime Minister’s Questions on 8 September, Labour leader Sir Keir Starmer attacked the social care plan and said the PM “didn’t stand by his guarantee that no one will need to sell their house to pay for care”.

Mr Starmer said for someone with assets of £186,000 - including their home - they will still have to pay £86,000 towards care.

The Labour leader asked: "Where does the prime minister think they are going to get that without selling their home?" Mr Johnson said the country appreciates that the Tories "have a plan" unlike Labour.

Sir Andrew Dilnott, whose independent commission bearing his name recommended a care cap in a report published 10 years ago, said in practice, the care cap will mean that a resident who has half their costs paid for by the local authority under the means test, will reach the cap having spent just £43,000, "so far less of the family's savings are lost".

Health Secretary: Everyone will be able to get deferred payment agreements

In response to criticism about the care cap, Health Secretary Sajid Javid said: "We will make sure that everyone is able to access what is called the deferred-payment agreement... which means no-one will have to sell their house in their lifetime."

Deferred Payment Agreements (DPAs) are a legal arrangement with a council which covers care costs up front and is secured against a person's home, so that after a person dies, their home is sold off to repay the loan.

However, currently councils can refuse to approve these loans, if they do not think they will get all of their money back.

Before making his social care announcement, Mr Johnson visited London's Westport Care Home with Chancellor Rishi Sunak and the Health Secretary Sajid Javid. The home was selected because 100 per cent of its staff had been vaccinated, prior to the requirement being made law.