Adult Social Care Report - Social Care Cap - Update

The Government announced on 17 November 2021 its proposals on how the social care cap, which is the limit on the amount that adults can be required to pay towards eligible care costs over their lifetime, will work and its timetable for consultation on these proposals.

Key takeaways include:

• For individuals who receive local authority financial support for their care costs, it is the amount that the individual contributes towards these costs that will count towards the cap. In announcing this the Government has departed from Sir Andrew Dilnot’s proposed reforms and from the existing Care Act which both provided that means tested local authority contributions would accrue towards the cap.  The changes will need Parliamentary approval.
• Daily living costs, will not count towards the cap and will be set at a national rate of £200 per week.
• Independent personal budgets for those who ask local authorities to commission their care will be based on what it would have cost the local authority to meet the individual’s needs and not what the actual cost to the individual might be.  This proposal will be subject to further consultation.
• Third party top ups to cover care will be allowed but will not count towards the cap and will still be payable once the cap is reached.

The Government has announced the start of a period of ‘co-production of the statutory guidance with the sector’ which, as we understand it, will be based on the draft regulations and guidance published in 2015.

A public consultation will follow in the new year and regulations and final guidance are due to be published in spring 2022.