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.

Individuals in England or Northern Ireland with assets of more than £23,250, £24,000 for Wales (non-residential care, £50,000 for residential care) or £28,000 in Scotland will be fully responsible for their care costs with no lifetime limit or cap currently applying.