What the controversial new social care changes mean for you and your family

A controversial social care reform has been backed by MPs this week, despite warnings that the move will impact poorer people across England.

While Prime Minister Boris Johnson insists the reform is ‘incredibly generous’, Labour and other opposition parties have rejected the plan, as have nineteen Conservative MPs, who have each rebelled against the government over the move.

Greater Manchester Mayor Andy Burnham also labeled the reform, which received 272 votes to 246, as unfair, pointing out that social care funded by wealth taxes and a 10% levy on estates ‘is the way to go’. 

But what will the social care reform mean for you and your family?

Back in September, Prime Minister Boris Johnson announced a cap on care costs for adults in England starting from October 2023, with the promise of a £86,000 limit on how much an individual has to pay over their lifetime.

And this week, the government announced it was introducing an amendment to the reforms which will mean that those with less than £20,000 in assets – the value of their home, savings or investments – will not have to pay anything from these towards care fees (although they might have to pay from their income).

Those with more than £100,000 in assets, on the other hand, will not receive any financial help from their local council.

@langballe / Unsplash

Alternatively, those with assets between £20,000 and £100,000 will qualify for council help, but will have to pay £86,000 out of their own pocket to reach the cap. 

The reform has sparked concerns that those living in poorer areas with less valuable homes will be impacted, with many believing the richest people will see a greater share of their assets protected.

Others have voiced worries that those who are less well-off could even be forced to use up their savings or sell their home to pay for their care later on in life.

Despite concerns by opposition parties and MPs, however, Johnson has insisted that the new system is an improvement and ‘more generous’ than what is currently in place. 

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Speaking at the CBI annual conference yesterday, the Prime Minister said: “It is in fact more generous than some of the original proposals of Andrew Dilnot because it helps people not just who are in residential care but also people who benefit from domiciliary care as well.

“We are finally tacking a problem that has bedevilled this country for decades, been very, very unfair on people who have got dementia or Alzheimer’s and been forced to face catastrophic, ruinous costs for that care when somebody who has cancer or some other affliction does not.

“We are addressing a long-standing social injustice and it will benefit the people of this country.”