Before The Prime Minister had to enter self-isolation at Chequers the other week, another promise was made to reform the Social Care system and (perhaps most importantly) we would be told how we as a nation, are going to fund it. This promise was, however, pushed back to the end of the summer recess but the government needs to finally show us its hand, to give us all some much-needed clarity.

A recently published study (The Annual Just Care Report 2021) revealed that when it came to organising long-term care for a family member, 62% of respondents found it very difficult to find the right information and 77% were shocked at how expensive it was and 73% were surprised by how little financial support the State provides and how much they would have to contribute.

With an ageing population, one can no longer cross one’s fingers and hope that it doesn’t happen to them. I would say that we are all very likely to have to organise care for a family member either at home or move them into a care home, or a combination of the two. I have.

The government is considering a tax rise, perhaps higher national insurance contributions even for those past their state pension age. Will this solve the problem or cost them the next election? One must remember that half of social care funding is for those of working age, not just ‘Old Age Care’. 

I believe care support will continue to be means-tested and the Government has its eyes on long-standing residential property equity and large future family inheritances. Those with enough money to pay for their care will still need to pay for their own care. I believe that the NHS and the local authority in the future will still not pay for your social care; this continues to be very harsh for dementia sufferers whose needs are often (save for severe cases) anecdotally deemed to have social care needs rather than purely medical. 

It is time to have a conversation about this issue with each other and your family so you know what is perhaps coming, later on down the line. 

Thomas Westcott Chartered Financial Planners are authorised and accredited to advise on later life financial planning matters. This work often centres around care fees and the cost of care for someone later in life. I am a SOLLA accredited adviser. 

We can work with family members who act as attorneys and/or deputies for their family members, often those who are facing these later life planning matters. 

How can the Thomas Westcott team help?

We are able to draw upon our considerable experience in this complex area and we can work with you, your family and/or your professional representatives to help you manage your finances during this difficult time. These could include the following:

  • We will advise as to any financial assistance you may be able to claim from the state.
  • We build cash flow projections to establish the affordability of care fees into the future.
  • We provide independent advice on care fees payment plans (care annuities), help with obtaining underwritten quotations from the open market.
  • We can advise on equity release strategies to help those meet the cost of care whilst staying in their own homes. 
  • We design bespoke investment strategies aimed at meeting the cost of care.
  • We provide comprehensive inheritance tax and care fees advice for clients planning for the future, to ensure that any estate planning does not compromise one’s affordability of the best care in later life. 

We offer all enquiries a free initial consultation where would be happy to listen to your needs. Enquire here.

By Simon Lake, Director

Please note:

Equity release is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.

The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.