Last week, Peter Barnett, chair of our SOLLA Advisory Board shared his insights on the House of Commons Library Research Briefing, entitled 'Introducing a cap on care costs.'
It made for a very interesting read, laying out the landscape in which any decisions that may be taken must operate, how we got here and where we are starting from.
Peter’s article is available to read for all our SOLLA members:
https://lnkd.in/ddri-Rxj
Since then, it’s no surprise to many that the new Government has announced that in its October Budget, it plans to means test Winter Fuel Allowance and to cancel the Dilnot Care Funding proposals.
And Peter shares his additional thoughts and insights here:
“Unfortunately, the WFA was never guaranteed. It was a one-time political give away, just like mortgage tax relief, and what politicians give they sometimes take away. The total increase in state pension and other benefits to pensioners is broadly in line with universal credit and disability benefits at around 6.5%, and if this is seen as too low in total, then voices need to be speaking out louder about the levels of escalation on working age benefits.
And as for the demise of free personal care for the elderly, as I say in my article, I wouldn’t be surprised if total care costs are split and the actual care cost paid for by the State and the accommodation/living costs element means tested. We all want good quality social care, but the harsh reality is that in the present economic circumstances, those whom it is deemed have the means to fund it, will be expected to do so from their own resources.
The Government has also reiterated its promise not to increase tax rates or VAT on ‘working people’ and so it will have to fund the money it says it needs from somewhere else. So, along with other non-domestic tax raising measures, we should expect increases in Corporation tax and changes in the IHT landscape, especially on things like agricultural property relief which Labour in opposition identified as a loophole they would review if elected.
This can only mean that the ongoing role of the accredited SOLLA adviser will become even more important, and that there’s much to take into consideration when giving best advice to clients.”
To access our articles and other invaluable resources, you can find out more here about SOLLA membership and the all the benefits available.
https://lnkd.in/ePZyhw2c
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