If a person is eligible for social care support, they may receive services free of charge. However, if they have significant income or savings then they have to pay some or all of the cost of those services.

Many people see the current system as unfair, since people who have saved for their retirement can spend most of their savings on social care support. In England, the proposals for social care reform also include changes to paying for social care.

Charging for services

If a person’s 'chargeable income' is above a certain level (Income Support plus 25% in England), then they can be charged for their services. Chargeable income does not include earned income, but it does include pension income and some benefits. There is no limit on what a person can be charged for their services provided that they are left with Income Support plus 25%. Many people feel that this doesn’t leave them enough to live on. Sense knows of people who refuse services because of the amount they would be charged.

Sense believes that the amount of income you can have before being charged should be increased to twice income support and that people should be charged 65% of their chargeable income above that level, not 100%. We think this is fairer to people who have saved into pensions expecting a good standard of living when they retire, and would make it less likely for people to turn down services they need because of the cost.

If a person has assets above £22,500 per year they will not get free services. Assets include savings and, if you are moving into residential care, your house if no other member of the family lives there. Many people feel this is unfair.

Proposals for change

In 2010 the Government asked a commission to look at how this could be changed and in February 2013 the announced changes as a result.For those who develop needs after retirement age there will be a cap on the total amount of what they have to pay for care of £75,000. Those who develop care needs after the age of 18 but before retirement age will have a lower cap, but no decision has been made about what level that will be set at. We expect there to be a consultation on this later in 2013.

Sense supports this principle of a cap provided enough money is put into the system to fully fund it. However, unless the cap is fully funded it will simply make things even more difficult for those who get free care as there will be less money in the system.

The cap funds only support which is considered eligible, so people with needs below the eligibility threshold may end up paying more. For those who already receive services free the eligibility threshold is the important issue. Sense will be working with Government over the coming months to try to get the eligibility threshold as low as possible.