Pensions - Articles - Partnership comments on delay to Care Cap

 “With an estimated 150,000 people entering care each year, the introduction of the Care Bill was supposed to provide them with a consistent framework in which to make concrete plans around care funding. The delay of the introduction of the ‘Care Cap’ to 2020 will therefore be a blow to them and their families who will need to continue to pay an average of £28,600 per year.

 “However, this will come as a huge relief for the Local Authorities who are reeling under the impact of budget cuts and already face a significant demand for care needs assessments. At a time of fiscal constraint it is not surprising that this expensive proposal has been delayed but the risk is that it may well disappear which may create further uncertainty.

 “At the moment, those who are looking for the opportunity to cap their liabilities but secure a guaranteed income for life while in care have the option to choose an immediate needs care annuity. These products continue to fulfil a critical need – one which is sure to grow as the population ages.”