Care Fee Charges: The Changes

How does the Tory Manifesto affect me?

Update: Following the hung parliament, it does not seem likely that the Conservative’s care fee charging proposals will come in to force – certainly within this parliament.

Accordingly, the position remains that those assessed for residential care fees can keep just over £23,000 in capital.

Firstly the Tories have to win power on the 8th June 2017.

Will they win? It seems likely they will. This article assumes that the Tories will win the upcoming general election.

In their manifesto, the Conservative Party have proposed changes to how and when people in the UK pay for care home fees.


Is there a cap on fees?

Yes, at present this means that individuals who require residential care are able to keep £23,250. That means the total value of their estate over £23,250 can be used to pay for care fees.

This is going to change. The cap is increasing to £100,000.

Good news! Perhaps not.


The Changes

As a result of the upcoming changes, you will be able to keep £100,000, meaning anything else in your estate over that amount can be used to pay for care fees. But…

Whereas previously the value of your home was taken in to account for residential care only, now the value of your property is taken in to account when assessing you for care at home too.


This means that approximately twice as many people will have to pay care fees than previously.

The vast majority of people who own their homes have homes that are worth much more than £100,000.

Many of the exemptions to having to pay care fees are to be removed, and the fees can be taken after your death.


Many believe this is a ‘Death Tax’.

Further, the system is to be structured so that those who do have to pay for care effectively subsidise those that don’t.


For advice as to where you stand, contact us. Our advice is free, without any obligation whatsoever.