I make no apologies for the length of this blog but it needs explaining so that people can grasp the nettle into this devious policy.
Many people think this vile policy is an outrage, which it is. The Conservative Government under Theresa May has come up with a cunning plan to flog off the family home once you’re dead after decades of encouraging people to save for old age and the right to buy under Thatcher (which they also reintroduced and plan to extend according to their manifesto) led many to jump at the opportunity to buy their first home, work hard and save ,but it not as simple as people think, but a policy contrived in such a manner that the nasty party are back with a vengeance.
Questions are being asked by many how they plan to implement this well, I think they will do the following.
Many disabled people and pensioners get Passported Benefits to top up their incomes including those who own their own homes,some of those are Means Tested benefits, Private Tenants also face bedroom tax under Universal Credit in 2018.
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Income Support
• Pension Credit
• Tax Credits (Child Tax Credit and Working Tax Credit)
• Housing Benefit
• Council Tax Support
• Social Fund (Sure Start Maternity Grant, Funeral Payment,
Cold Weather Payment)
• Universal Credit
My thinking is as follows that most people do not have wealthy stash of cash to pay for Social Care they may need in later life or currently,so they claim top up benefits such as above list. In many cases when an assessment for care is done many councils who provide social care are now including the care component of DLA/PIP even though it is a Non Means Tested Benefit as the list of exclusions get smaller and smaller with councils tightening their belts due to cuts to their budgets.
In the Tory Manifesto this is how they justified social care promises
A long-term plan for elderly care Our system of care for the elderly is not working for the hundreds of thousands currently not getting the dignified and careful attention they deserve, nor for the people and organisations providing that care, nor is it sustainable for today’s younger people who will potentially one day face care costs themselves. It is not fair that the quality of care you receive and how much you pay for it depends in large part on where you live and whether you own your own home.
Where others have failed to lead, we will act. We have already taken immediate action, putting £2 billion into the social care system and allowing councils to raise more money for care themselves from Council Tax. We are now proposing medium and long-term solutions to put elderly care in our country on a strong and stable footing.
Under the current system, care costs deplete an individual’s assets, including in some cases the family home, down to £23,250 or even less. These costs can be catastrophic for those with modest or medium wealth. One purpose of long-term saving is to cover needs in old age; those who can should rightly contribute to their care from savings and accumulated wealth, rather than expecting current and future taxpayers to carry the cost on their behalf. Moreover, many older people have built considerable property assets due to rising property prices. Reconciling these competing pressures fairly and in a sustainable way has challenged many governments of the past. We intend to tackle this with three connected measures
- First, we will align the future basis for means-testing for domiciliary care with that for residential care, so that people are looked after in the place that is best for them. This will mean that the value of the family home will be taken into account along with other assets and income, whether care is provided at home, or in a residential or nursing care home.
- Second, to ensure this is fair, we will introduce a single capital floor, set at £100,000, more than four times the current means test threshold. This will ensure that, no matter how large the cost of care turns out to be, people will always retain at least £100,000 of their savings and assets, including value in the family home.
- Third, we will extend the current freedom to defer payments for residential care to those receiving care at home, so no-one will have to sell their home in their lifetime to pay for care.
We believe this powerful combination maximises protection for pensioner households with modest assets, often invested in the family home, while remaining affordable for taxpayers. We consider it more equitable, within and across the generations, than the proposals following the Dilnot Report, which mostly benefited a small number of wealthier people.
An efficient elderly care system which provides dignity is not merely a function of money. So our forthcoming green paper will also address system-wide issues to improve the quality of care and reduce variation in practice. This will ensure the care system works better with the NHS to reduce unnecessary and unhealthy hospital stays and delayed transfers of care, and provide better quality assurance within the care sector.
Sounds good on paper doesn’t it, except the sting in the tail is your home is an asset and they plan to means test you on something that isn’t theirs in first place, especially if you claim one of the above benefits. So either when they shove you in a residential place of care, or you claim top ups to live independently you are going to have Covenant Charge against your property that you bust a gut to buy and things you went without to achieve it, thinking you were doing the right thing.
You can hear the laughter from millionaire mansions as they plot to rob you blind twice, and some will agree that the Conservatives are right to do so. Now ask yourself this who has private interests is Care Homes, yep you guessed it Politicians! http://www.mirror.co.uk/news/uk-news/selling-nhs-profit-full-list-4646154
So now to nitty gritty in how they will do this, will be not only use your assets from your home but use the above benefits to implement it (as UC documents attached will show).
Supported Mortgage Interest (SMI) is equivalent Housing Benefit for those who own their own homes, from 2018 that will be turned into a loan against your home so you pay it back if you return to work if not Bingo they use the Covenant Charge upon your death. So either way the government will own your home which will solve their house building crisis so some extent while failing to build adapted homes for disabled people and elderly to enable them to downsize.