The Care Act 2014

The Care Act 2014 was set to make some sweeping reforms to how long term care would be paid for.

Some elements of the Care Act were implemented in April 2015, notably the new Deferred Payment Agreement under which (for those that qualify) a local authority will lend money to help pay for care costs so that it is not necessary to immediately sell your home.

The amount loaned will be secured by a charge on the property, which will incur interest and increase over time as more money is lent to pay ongoing care fees. Ultimately, the loan (with interest) needs to be repaid and can be done so when the property is sold, or if some other means to repay the loan is found.

A more significant change was due to be implemented in April 2016, with the proposed introduction of a "Cap" on the total amount an individual would be required to pay for care. However, in July 2015 the government decided to postpone the implementation of the cap, and it is now not expected to be introduced before 2020, if at all.

This therefore means that individuals in England or Northern Ireland with assets of more than £23,250, £24,000 for Wales (non-residential care, £30,000 for residential care) or £26,500 in Scotland) will continue to be fully responsible for their care costs with no lifetime limit or cap applying.