National Insurance & Care Funding – What it means for you

April 25, 2024 | Funding

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With the recent and widespread news that the government will be increasing National Insurance by 1.25% between 2022 and 2023 to change the system of funding social care, this means a lot of our carers and the people and families who receive our home care services could be affected.

So, here is a breakdown of what the new social care funding system may mean for people like you.

Social Care Funding Overview

  • The new system and national insurance increases will begin from October 2023.
  • NOBODY will have to pay more that £86,000 for care over their lifetime.
  • This includes social care for elderly people and vulnerable younger adults.
  • Until reaching that limit, anybody with more than £100,000 in assets (including own home), will be responsible for paying ALL their care costs.
  • IF you have assets between £100,000 and £200,000, part-funding for care can be provided by the state.
  • If you have assets lower than £20,000, ALL care costs will be state funded.
  • If and once a person does pay £86,000 for health and social care, they will no longer have t pay for health and social care after this point.
  • Any costs incurred before October 2023 will NOT be counted. So those with significant assets spending a long time in car, may spend more than £86,000 in total.

What This Means for Carers

There is money in the funding package for additional skills training and separate cash for councils, but no obligation for local authorities to pass on the money in the form of higher wages for care workers.

What This Means for people who need Care

The overall cost of care provision will be capped at £86,000, which will help those who spend years in care. Currently only those whose assets are below £23,250 are eligible for state-subsidised provision – that figure will rise to £100,000 even before the cap is reached.

Home Care Funding Support

Following this substantial news and proposed changes, if you and your family need help and advice regarding national and local funding for our home care services, please contact your local branch.