Inheritance tax to pay for care

Thousands more people are likely to be hit with inheritance tax to pay for an extension in state support for elderly care.

Latest ITV News reports

Campaigners criticise plans over capping care bills

Health Secretary Jeremy Hunt has announced plans to cap bills for long-term care in old age at £75,000 in England, in a £1 billion move to be funded by dragging more people into the inheritance tax net.

Campaigners voiced disappointment at the level of the cap - more than double the £35,000 recommended by the independent Dilnot Commission in 2011.

ITV News Political Correspondent Carl Dinnen reports:

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Care system changes will 'reduce anxiety' of savers

Andrew Dilnot, who chaired the independent commission set up by the Government to examine the funding of elderly care, has said the Coalition's planned changes will reduce the "anxiety" at covering costs in later life.

Mr Dilnot described the current system as a "complete disaster".

Speaking on BBC Radio 4's Today programme, he said he "regretted" the Government's expected new cap of £75,000 on the costs people pay for care, having recommended £35,000, but said he accepted public finances are in a "pretty tricky state".

He said the proposals, set to be announced later by Health Secretary Jeremy Hunt, mean "for the first time you don't have to be terrified of needing care".

He said the changes meant people "are effectively insured by the state, which should make them feel much more comfortable".

NCP: 'We should all pay into a national care system'

Today, the government is expected to announce a cap on how much people pay to be looked after in old age.

If it goes ahead it means pensioners will not pay more than £75,000 towards the cost of their care.

Dot Gibson from the National Pensioners Convention spoke to ITV Daybreak, she said: "We should have a system whereby we all pay into a national care system, and everybody benefits at the end of the day."

Read: Care cap could be paid for by inheritance tax freeze

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£75,000 cap planned for care bills

The coalition will today announce that elderly care bills are to be capped by the state in a £1 billion move expected to be funded by dragging more people into inheritance tax.

To the disappointment of many campaigners, the cap will be set at £75,000 - more than double the £35,000 recommended by the independent Dilnot Commission.

But thousands more people will be hit with inheritance tax bills because of a three-year extension of the freeze in the £325,000 threshold - £650,000 for couples - at which it kicks in at 40%.

Saga welcomes 'certainty' of care cap

Saga Homecare has welcomed Government plans to put a cap on the costs of care at £75,000, but said the reforms needed to be implemented sooner. The organisation's director Tim Pethick said:

Saving people from catastrophic costs of care is an important principle, as is the fairer sharing of cost between the individual and the state.

Changing the amount people can have before they pay all cost from GBP23,000 to GBP123,000 will be welcomed by many in middle Britain who have done the right thing and saved for their older age.

The disappointment comes in the delay in implementing the reforms. Action this day is what Britain needs.

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