The government has said that support payments from local councils will not count towards the cap, just the amount that someone contributes themselves towards their personal care, that is, help with such things as washing, dressing and eating.
People with assets of over £100,000 will not be eligible for financial support from their local authority. If self-funders have eligible needs, the local authority must provide an independent personal budget (IPB). The IPB will be used to calculate the amount that will count towards the cap. Self-funders will reach the cap quite quickly.
People with assets of between £20,000 and £100,000 will be means tested for financial support to determine what they can afford to pay from income plus a means-tested ‘tariff’ contribution from assets. People with assets below £20,000 will no longer have to contribute from their assets, only from their income.
However, everyone will still remain responsible for their daily living costs – such as food, utility bills and accommodation – whether in a care home or living at home. The initial value of these is set at £200 a week. Also, any top up payments, for example for a premium room, will not count towards the cap.
