UK Health Secretary Jeremy Hunt has set out his plans to cap the amount people should pay for social care in England at £75,000.
He told MPs the cap, higher than the £25,000-50,000 recommended in 2011 by the Dilnot report, would give people "greater peace of mind" and would help avoid "ruinous" costs that see around 40,000 people every year forced to sell their homes to pay for care.
The Health Secretary said the proposed new framework, due to come into force in 2017, would bring "greater certainty, fairness and peace of mind".
The government is proposing to cap the amount that anyone will have to pay in their lifetime at £75,000.
This figure would only cover the cost of nursing care and
people would still have to pay for accommodation and food – although
some support will be provided.
For more on this story: Hunt’s plans aim to bring greater peace of mind
Mr Hunt confirmed that the proposed changes – expected to cost £1bn – will be funded by a freeze on inheritance tax thresholds which currently stand at at £325,000 for individuals and £650,000 for couples.
Read more: Inheritance tax freeze to fund social care cap
Means test threshold for care to rise
It is understood that the government is also proposing increasing the means-tested
threshold for social care support – designed to ensure the less well-off get state help towards
their care costs.
Currently anyone with assets of more than £23,250 has to pay
for their care. Under the plans, the threshold would rise to £123,000,
reflecting the fact that rising property prices over the years have
effectively meant any home-owner falls outside the state system.
Find out more: means tested support: threshold to change