1. ITV Report

Elderly care changes: What do they mean for you?

The new cap on elderly care bills is expected to cost the state £1 billion. Photo: John Stillwell/PA Wire

Health Secretary Jeremy Hunt will today set out the Government's plans for the long-term funding of social care in England, though most of the keynote figures are already public knowledge. Here's what the changes will mean for those entering old age:

The neediest in society will be protected by a greatly increased threshold.

If you have total assets worth less than £123,000, then your costs of old-age care will be covered by the state. (This means-tested threshold has been raised by £100,000).

Those above the threshold will be required to pay the first £75,000 towards their care, after which the state will cover the general costs.

The state support, though, will not cover what are deemed the "hotel costs" of living, ie. more costly accommodation and general living costs, like food.

Nick Clegg has said the new care plan will help people avoid selling homes. Credit: Chris Radburn/PA Archive

The Government plans are an attempt to avoid you having to sell your own home to fund care.

The changes to the system may affect you in other areas of your life as the Government plots to fund the new regime.

The inheritance tax threshold will remain frozen at £325,000 for individuals and £650,000 for couples for three years from 2015. This is expected to affect 5,000 people.

An alteration to your National Insurance payments and pensions, along with general cost-cutting across Government departments, will also fund the changes.

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