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Social care cap to be set at £75,000 Social care cap to be set at £75,000
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Elderly people in England will not have to pay more than £75,000 for long-term social care after 2017, the health secretary is expected to say on Monday.Elderly people in England will not have to pay more than £75,000 for long-term social care after 2017, the health secretary is expected to say on Monday.
The cost of any care above that amount would be paid for by the state.The cost of any care above that amount would be paid for by the state.
The figure is much higher than that recommended by a 2011 review, which said any cap should be set at £35,000.The figure is much higher than that recommended by a 2011 review, which said any cap should be set at £35,000.
Reform of social care has been the objective of successive governments but only limited changes have taken place and cross-party talks broke down.Reform of social care has been the objective of successive governments but only limited changes have taken place and cross-party talks broke down.
The BBC understands that funding for the scheme will not come from the Department of Health.The BBC understands that funding for the scheme will not come from the Department of Health.
Full details of the agreement are set to be revealed in Health Secretary Jeremy Hunt's statement to the Commons.Full details of the agreement are set to be revealed in Health Secretary Jeremy Hunt's statement to the Commons.
But it is believed the health secretary fought off attempts by the Treasury to have the bill for the scheme paid for from his department's budget.But it is believed the health secretary fought off attempts by the Treasury to have the bill for the scheme paid for from his department's budget.
'Bedevilled for decades''Bedevilled for decades'
BBC political correspondent Tim Reid said there was some speculation plans to abolish the second state pension would provide the chancellor with funds to cover the costs.BBC political correspondent Tim Reid said there was some speculation plans to abolish the second state pension would provide the chancellor with funds to cover the costs.
A source close to Mr Hunt said: "This is a problem that has bedevilled governments for decades. The spiralling costs of social care and people being saddled with costs and having to sell their homes.A source close to Mr Hunt said: "This is a problem that has bedevilled governments for decades. The spiralling costs of social care and people being saddled with costs and having to sell their homes.
"The coalition felt that this was an important decision that needed to be made and we thought long and hard about how to do it and pay for it. And we believe this is a viable solution.""The coalition felt that this was an important decision that needed to be made and we thought long and hard about how to do it and pay for it. And we believe this is a viable solution."
Economist Andrew Dilnot was commissioned by the coalition government in 2010 to examine options for overhauling the social care system.Economist Andrew Dilnot was commissioned by the coalition government in 2010 to examine options for overhauling the social care system.
Mr Hunt is quoted in the Daily Telegraph as saying the lower cap, recommended by Mr Dilnot, would "not be credible" in the current economic climate.Mr Hunt is quoted in the Daily Telegraph as saying the lower cap, recommended by Mr Dilnot, would "not be credible" in the current economic climate.
"We're in a period where we have a huge deficit and the over-riding national priority for all of us when we become pensioners is actually to get the national debt under control."We're in a period where we have a huge deficit and the over-riding national priority for all of us when we become pensioners is actually to get the national debt under control.
"So it's not helping anyone to announce a generous cap by increasing the national debt. We need to have some realism, the important thing is that we have a cap.""So it's not helping anyone to announce a generous cap by increasing the national debt. We need to have some realism, the important thing is that we have a cap."
The health secretary added that he would expect pension and insurance companies to offer new products "where people save for their social care just as they save for their pension".The health secretary added that he would expect pension and insurance companies to offer new products "where people save for their social care just as they save for their pension".
Currently people with savings and capital of more than £23,250 have to pay for care costs. Those with assets of between £14,250 and £23,250 have these taken into account when their contribution is assessed. Below £14,250, only a person's income is considered.Currently people with savings and capital of more than £23,250 have to pay for care costs. Those with assets of between £14,250 and £23,250 have these taken into account when their contribution is assessed. Below £14,250, only a person's income is considered.
Unconfirmed reports have suggested this threshold might rise but campaigners say many people will still have to sell their homes to pay for care under a £75,000 cap.Unconfirmed reports have suggested this threshold might rise but campaigners say many people will still have to sell their homes to pay for care under a £75,000 cap.
Stephen Burke, director of United for All Ages, said: "When families realise what is being proposed, they will be in for a rude shock.Stephen Burke, director of United for All Ages, said: "When families realise what is being proposed, they will be in for a rude shock.
"The government is sneakily shifting the cost of care further and further onto older people and their families.""The government is sneakily shifting the cost of care further and further onto older people and their families."
He said there were "fairer and better alternatives" such as raising the capital threshold for paying for care to at least £200,000 or higher.He said there were "fairer and better alternatives" such as raising the capital threshold for paying for care to at least £200,000 or higher.
The Alzheimer's Society said that a rise in the capital threshold could take thousands of people "out of the firing line" for huge costs.
But commenting on the cap, it added: "A £75,000 cap is so high that it would only help 'the few'.
"The 800,000 people with dementia in the UK are amongst the hardest-hit by a system that charges massive amounts for essential care. As well as taking action on this Dementia Tax, it is vital that government also looks at the huge underfunding of the system."