Around half the UK will need to spend the equivalent of the value of their home before they become eligible for Government support to cover care costs, it has been claimed.
Financial experts Partnership said Government plans to ensure no one pays more than £72,000 towards elderly social care from 2016 is an excellent idea ‘in principle’.
But it warned most people would have to spend on average £177,451 on social care over six years before they reach the cap. Huge variations in property prices from region to region mean those in Yorkshire would spend the equivalent of 147% of their housing wealth on care compared to 40% for Londoners.
Thomas Kenny, head of technical pricing at Partnership, said:?? ‘As only the amount that the local council is willing to pay – less the hotel costs – is counted, people are likely to pay significantly more than the £72,000 they anticipate.
‘While the Government has said that no one will be forced to sell their home, this is the largest asset that many people have and it may well be their only option.’
