Dementia Tax: 10 Questions for Theresa May
1. At what level will the cap on care costs be set?
2. How will it be uprated? Will it be in line with house prices?
3. Does the £100,000 floor apply to households or individuals?
4. Will the cap and £100,000 floor apply to care costs only, or will it also include accommodation costs?
5. Will people still need to pay an arrangement fee and interest for care costs, and if so how will these charges be set? The Royal Borough of Windsor & Maidenhead currently charges 2.25% interest and a £900 set up fee plus £300 a year (link).
6. Will interest fees and fee payments for care costs be included under the cap?
7. Will local councils have to pay the additional costs for this scheme or will they be fully reimbursed by the Treasury?
8. Will widows, widowers or dependent children be able to remain in the family home after their relative has died, especially where they are elderly themselves? Or will they be forced to sell the home to pay for care costs?
9. What interest rate will be charged on a deferred payment once the beneficiary has died? Royal Borough of Windsor & Maidenhead charge 8% if not settled within 90 days of death (link).
10. Will measures be put place to prevent people avoiding the Dementia Tax, for example releasing equity or gifting a house to children or grandchildren more than seven years before death?
The Liberal Democrats have committed in our manifesto to implementing the recommendations of the Dilnot Commission, which would mean a cap on care costs of £72,000.
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