NORTH-EAST solicitor Helen Biglin, an expert in legal and financial planning for elderly people, has sounded caution over the Government’s new cap on care costs.

The measures for funding care are designed to ensure that the elderly and people with disabilities get the care they need without facing unlimited costs.

The cap for retired people, when it is introduced in April 2017, is said to be the equivalent of £75,000. Once the cap is reached, the state will step in and provide financial support.

But Helen Biglin, of BHP Law, says she fears the changes would benefit only a few.

“Unfortunately, once you examine the detail more closely it’s clear that very few people will actually see any real benefit.

“Although the headlines state there will be a cap on care costs of £75,000, people need to appreciate that the cap only covers ‘standard rate costs’ for people with ‘high care needs’. It does not cover general living expenses, people will still have to pay ‘hotel’ costs for their board and lodging.

Helen, says it’s estimated that the cap would probably only apply to around one third of the costs incurred by someone requiring care.

The changes are designed so that no-one will be forced to sell their home in their lifetime to pay for residential care. Instead, the care fees will be deferred as a growing IOU that must be paid on their death.

Helen says the £75,000 cap – which the Government describes as ‘slightly above’ the £25,000 to £50,000 range recommended by the Dilnot Commission – still represents a large amount for many people, who would still end up having to sell their home to fund their care.

“Generally, someone would need to be resident in a care home for five years before reaching the cap of £75,000, at which point they no longer have to pay themselves.

This is much longer than the average stay, so most people will still have to pay for their own care costs, unless they have very few assets,”she explains.

“In all the circumstances, people should still consider obtaining legal and financial planning advice on how best to meet the cost of care whilst still looking to protect assets for the next generation.”