Crawley MP, Henry Smith, has today welcomed the Health Secretary, Rt Hon Jeremy Hunt MP, announcement that from 2017, for the first time ever, there will be a cap on care costs at £75,000.

Applauding the Government’s decision, Henry commented:

“Every year more than 30,000 people have to sell their homes to pay for the cost of care. The current system, which only provides state support if peoples’ assets are above £23,250, is unfair and sends out completely the wrong message – that if you work hard, save for your future and want to have something to pass on to your loved ones, your savings can disappear in a puff of smoke if you end up needing long term care. As one in three of us will get dementia and one in ten end up with more than £100,000 of care costs, this is a problem that cannot be ignored.

“That’s why earlier this week, following a pledge by the Prime Minister to ensure that people will not need to sell their homes to pay for care – much to the mirth of Labour, this Government has backed up its talk with action by implementing a package of reforms to help support people with care costs.

“First, a cap on care costs at £75,000 from 2017. The intention isn’t that people should pay the £75,000, but that they should not have to pay it because they can cover it through, for example, an option in their pension plan. Only with the certainty of knowing there is an upper limit to costs will insurance companies offer this.

“Secondly, the threshold for the value of assets someone can hold before qualifying for support will rise from £23,250 to £123,000. This will provide financial protection for those in Crawley with modest wealth, while ensuring that the poorest continue to have all or the majority of their costs paid.

“These proposals demonstrate the Government’s determination to help people in Crawley who have worked hard, saved and done the right thing. We can be proud Great Britain will be perhaps the first country which, in the face of an ageing population, is building a system where people plan and prepare for their care costs as much as they plan and prepare for their pensions.”

Follow Henry daily via: www.facebook.com/henrysmithmp;http://www.youtube.com/user/HenrySmithMP; or www.henrysmith.info.