Health and Social Care reforms are a ‘reality cap’ – Britons urged to start planning now | Personal Finance | Finance


In an exclusive interview with, financial expert Michael Copeland from Wesleyan Financial Ltd discussed these reforms and what it may mean for families. He said: “[The social care cap] lets you know how much you’re aiming for.

“Previously because it was open ended, that did create anxiety and it did create uncertainty because no one knows how long they are going to live for.

“It’s a reality cap, you know what it is, you know what the number is, so now you have the opportunity to plan properly for it.”

When looking at retirement and thinking about potential care costs that could arise in the future, he gave tips on how families may try and mitigate any loses with the new information they have regarding these reforms.

He continued: “As with all financial planning, one of the most crucial things that people need to do is just start early. Just start planning early.

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“With the valuable addition of tax relief, the money that you can invest in those early years will provide substantially to the costs of retirement and will be able to really valuably assist in the future in meeting any potential long term care costs.”

With the reforms starting in October 2023, it means for the people spending thousands on social care now, it will not be counted under the cap. The rule will only come into effect after 2023.

Furthermore, the new cap only applies to “personal care”, which is considered the physical act of looking after someone and is regulated by the Care Quality Commission.

Therefore, the social care cap will not cover accommodation, cleaning and food – commonly referred to as “hotel costs” for residents of care homes.

“And for me its people getting advice as early as possible, getting their plans in place as early as they possibly can so they have time to ensure all their arrangements are in place.

“That’s my number one recommendation for all my clients.”

These reforms will still need to be worked through. At the moment people do not get help with their social care costs until they have £23,000 worth of assets or savings, but this is being raised £100,000.

People can also get help with getting all their care costs paid for.

Previously, the maximum was £14,000, however, it is now being increased to £20,000.

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