I’m a homeowner. Am I going to have to pay more?
No. Under Dilnot’s plans, no one would pay more than they currently do for care (disregarding inflation). People should no longer have to sell their homes to pay for care.
What will I pay?
If your house or assets are worth £100,000 or more, you would pay up to the first £35,000 towards residential care that you receive in old age. Taxpayers should cover the costs beyond £35,000, Dilnot says.
I don’t have that much cash. How would I pay?
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You could choose to have it taken from your estate after death. Or you could take out private insurance. The State would still pay for the rest.
And that’s it?
You would also be expected to pay “hotel costs” to cover food and accommodation up to a maximum of £10,000 a year out of your pension.
I have less than £100,000 in assets. Would I still have to pay?
Means-tested help should be available. For example, if your home is worth £75,000, you would pay for the first £15,000 of your care, and the State would pay the rest. Under the current system, if you need long-term care and have assets worth more than £23,250, you have to pay everything.
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I have a £1 million house and plenty of other assets. Would I be expected to pay more?
No. You would still only have to pay the first £35,000.
Where will the money come from?
About £1.7 billion a year extra will be needed from the taxpayer, and this will rise. Dilnot says this should come from increasing an existing tax.
How we can we afford that with a huge deficit and faltering economy?
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The proposals would not be introduced until 2014 at the earliest, when the Government expects the economy to be recovering and the deficit almost eliminated.