Wealthiest Londoners will benefit most from social care cap

Alzheimer’s Society has warned that up to 78 per cent of people living with dementia in London would not benefit from the Government’s proposed £86,000 social care cap.

The charity has welcomed the introduction of a cap on care costs from 2023 as a significant step towards supporting people to pay for their care – but says the wealthiest will benefit.

But new research the society commissioned from the New Economics Foundation shows the current cap proposed in the Health and Care Bill will only be reached by just over one fifth of people living with dementia in London.

The research found that the wealthiest people with dementia are set to benefit most under the current proposals.

The charity is supporting an amendment to the Health and Care Bill being laid in the House of Lords this week, which would see local authority funding count towards the £86,000 figure, meaning more people with dementia who have fewer assets would benefit.

London Head of Services at Alzheimer’s Society said: “People with dementia are the largest users of social care and many have faced crippling costs just to be able to live their lives with safety and dignity.

“The cap on care costs is a huge step forward for the 78,600 people living with dementia in London – but the Government must now take this moment to get the details right and ensure that it’s fair and equitable for all.

“Right now, the Government’s proposals would benefit the wealthiest most and financially punish people with dementia who are less well off in the South East. This is not levelling up – but further deepening regional inequalities and hitting the most vulnerable people hardest.

“The proposed cap on care costs would only benefit just over one fifth of people with dementia in London, so we urge the Government to remove Clause 155 from the Health and Care Bill, ensuring that local authority means-tested funding counts towards people’s cap on care costs.

This will be a significant step towards ensuring the least wealthy people who are living with dementia are protected from disproportionate and catastrophic care costs”.

Research conducted by the New Economics Foundation, commissioned by Alzheimer’s Society, shows that under the Government’s current proposals, just 21 per cent of people with dementia entering care in England would reach the cap, at which point the state would step in to cover payments.

The study found that were the Government to instead implement the ‘Dilnot model’ – first proposed by Sir Andrew Dilnot in 2011, 54 per cent of people living with dementia would reach the cap.