Pensions Experts Say The Scrapping Of The Cap On Social Care Will Make Retirement Planning More Difficult

12 December 2017

Difficult Retirement Planning On Social Care Cap This month has seen the health minister, Jackie Doyle-Price confirm the current £72,500 cap on social care will be scrapped, resulting in many pension experts saying that this will make retirement more difficult.

Under David Cameron's premiership, the government had promised to bring in an upper limit on the amount that people must pay to fund their own social care, following the recommendations of the Dilnot commission in 2011. However, this week has seen the health secretary Ms Doyle-Price confirm that the government will not be "taking forward the previous government's plans to implement a cap on care costs in 2020".

Instead, she said, there will be a process of "initial engagement over the coming months" that will attempt to define the long-term reforms that will be published in a green paper due to be published in 2018.

"The prime minister has been clear that the consultation will include proposals to place a limit on the care costs individuals face."

"To allow for fuller engagement and development of the approach with reforms to the care system and the way it is paid for considered in the round, we will not be taking forward the previous government's plans to implement a cap on care costs in 2020."

Sir Steve Webb, the former pensions minister has been one of the many pension experts that have said that this will make it more difficult for people to plan for their retirement.

"It is all very well the government telling us what they are 'not' going to do, but we urgently need to know how they are going to solve the social care funding crisis. Most people are struggling to save enough for basic living costs in retirement without needing to set aside tens of thousands for possible care costs."

"We need some sort of cap on care costs so that individuals are not at risk of losing everything and so that insurance providers can come up with viable products for consumers."

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