Government scraps cap on care costs to help tackle spending ‘black hole’

[FiddlyDiddlyDee]

"The social care plan would have introduced an £86,000 cap on the amount an older or disabled person would have to pay towards their support at home or in care homes from next October.

After spending £86,000 on their care, people with a high level of need would have had their care costs paid for by local authorities."

My take on scrapping this is that it looks like another move that's punitive to the lower middle class. Many of the lower middle will burn through everything they've got in short order and leave nothing to their struggling children that need it.

I wouldn’t want to live on benefits so will continue to save

So in other words they aren't paying taxes on their assets here & as they aren't PAYE, what are they paying taxes on?

They'll have businesses that cars boats renovations will be written off against.

If they leave, what is the net loss?

This is hilarious. You're someone who has to work arguing with someone who doesn't because I profit from your labour by virtue of owning things.

People can't just 'sell' something or 'put in in a trust' to avoid tax. If we taxed everyone with a house worth 3 million+ and they all tried to clear off who would buy their houses?

They literally wouldn't be able to get out of a 10% tax. Don't pay it, forfeit the property.

@thefireplace you tell me I never said they would leave.

People can't just 'sell' something or 'put in in a trust' to avoid tax. If we taxed everyone with a house worth 3 million+ and they all tried to clear off who would buy their houses?

A 3m house isn’t the global elite though….

That's hardly social mobility. Don't you want a comfortable life with decent care and to ensure your children benefit from the fruits of your actual hard labour?

I know. That's why I put 3million+, and not 3million.

That's hardly social mobility. Don't you want a comfortable life with decent care and to ensure your children benefit from the fruits of your actual hard labour?

I have a comfortable life & my dc do benefit from that. I don’t see why I shouldn’t pay care costs though. I’m saving because I’m a millennial & don’t expect anything in old age. Plus compound interest is amazing 😆

You left off a zero!

Just to re value the top council tax bands, with help for the genuine asset rich money poor pensioner living in a house he/she bought in 1951.

A band D house in Cornwall is 2.4k might be worth 350k, owners on avg income, a band H house pays 4.8k, may be worth several million, owners multi millionaires.

Its an open door for Labour to push against.

Is that 3m with a million in cash or 3m many of which have a house in what is now an expensive area and virtually no cash? Many people have a house worth 500k and a pension pot worth a few £100k, a million in assets is really not a huge amount these days. I think the 9k leaving will be multi multi millionaires, and the 'on paper' millionaires wouldn't be able to afford to leave, but also do not have tons of money you could reasonably tax.

Why should you pay care costs if you don't need to? You'd actually rather pay for new expensive toys to be created for people instead?

No I didn't the reason I started at 3 million is to collapse the ability for people to sell 30+ million pound houses down the chain if a tax was levied on them.

@FiddlyDiddlyDee what are you talking about? Most people haven’t paid enough in tax to fund their state pension & NHS.

If the elite can’t move their money around why are some G20 countries looking at a cohesive policy?

If rich people moved their money out the country that would simply be a form of quantative tightening. The people who actually work for a living would become wealthier as a result of it.

Why are you so hoodwinked by this?

@FiddlyDiddlyDee

If you look at the details, this didn't help the lower middle at all, only the most wealthy benefitted, what a surprise. "Hotel costs" that is bed and board were not even in the cap, only care costs

You seem to have drifted somewhat from your OP about the lower middle classes not been able to leave an inheritance. As I said many of those won’t have anything to leave regardless of the care cap.

It’s not particularly progressive to wait until you are 50/60 plus to improve your life circumstances based on inheritance.

How would the lower middle have not have been helped by not having to sell their home?

@FiddlyDiddlyDee I think you are confused. All I have said is that we need global policies to target global wealth & hopefully they do manage it. You disagree, which is fine.

That would be true in a system in which people can improve their life circumstances based on hard work.

And this helps the lower middle class more than it hinders them.

No we don't

We need Labour to focus on taxing the wealthy and not cutting pensioners benefits and getting rid of plans for care caps

My parents are wealthy, and they are going to leave the country.

@FiddlyDiddlyDee why are you convinced so many do own their own home?

Let's be absolutely honest the £86,000 care cap wasn't going to be £86k was it? As some elements eg 'rent of room, food, electric, gas, water etc' are not actual 'care' and would have been additional costs.
Personally, my mother in laws costs were high and she was in a care home for medical reasons (severe parkinsons) and I reckon if we had challenged it via solicitors we would not have had to pay at all ... more people need to do this.

@FiddlyDiddlyDee so how would you tax the wealthy?

@mitogoshi exactly, it was just a Tory soundbite & if they wanted to protect lower classes why not cap at a % rather than a figure. Someone with a 200k house paying 86k is very different to someone paying 86k with a 2m house.