£124,800
Out-of-pocket family cost
Depletes 58% of liquid wealth
£98,400
Care capped; hotel/board excluded
Caps personal care only
£28,000
Personal care 100% free; board co-pay
Family assets preserved
Family Net Worth Trajectory Over Care Duration
Current System
£86k Dilnot Cap
National Care Service
| Care Cost Dimension | Current System | £86k Cap (Dilnot) | Proposed National Care Service |
|---|
Model synced with 2026/27 England Local Authority Means Test parameters.
🏛️ Current Means Test Rules
In England, if total assessable assets exceed £23,250 (Upper Capital Limit), you pay 100% of care costs. If your home is included (e.g. no spouse resident), homes are routinely sold. Once assets drop below £23,250, a sliding "tariff income" applies until reaching the £14,250 Lower Capital Limit.
⚖️ The £86,000 Dilnot Dilemma
While a £86k cap protects against catastrophic personal care fees, "daily living costs" (food and accommodation in a care home, approx £12k–£15k/yr) are legally excluded from the cap and must be paid privately forever, leaving long-stay residents vulnerable.
🏥 National Care Service (NCS)
Burnham's proposal establishes care free at the point of use like the NHS. Personal care is publicly funded via taxation/levy; individuals only pay capped, income-adjusted room and board contributions, eliminating forced home sales.
Model Assumptions, Tariff Calculations & Legislation Background
- Tariff Income: Local authorities assess £1 per week for every £250 of savings between £14,250 and £23,250.
- Personal Expenses Allowance (PEA): When the council steps in for care home residents, the resident keeps £30.15/week of their pension; the rest contributes to care. For home care, the Minimum Income Guarantee (MIG) (~£228/wk) is protected.
- Property 12-Week Disregard: During the first 12 weeks of permanent care home admission, property is disregarded by councils. We factor this statutory initial relief.
- Hotel / Board Costs: Standardized at £260/week for residential homes, benchmarked against Department of Health and Social Care (DHSC) impact assessments.