LTC
The capital limits for means tested local authority long term care (LTC) support have been increased. Effective from 4 April 2005, the lower capital limit in England and Northern Ireland has been raised from £12,250 to £12,500 and the higher capital limit has been raised from £20,000 to £20,500.
Those with capital below £12,500 will be able to claim maximum local authority assistance, while those with capital above £20,500 will be expected to meet the full cost of care accommodation themselves. Individuals whose capital falls between the two limits will still be expected to pay an additional £1 per week for every £250 of capital between the two figures.
The lower and upper capital limits for Wales have increased to £14,750 and £21,000 while, unexpectedly, Scotland saw its limits raised to £12,000 and £19,500. The Scottish Executive revealed last year that care expenditure had been far greater than expected with the entire annual care budget spent in the first nine months of 2004. Poor record keeping has been blamed for the Executive's failure to estimate the true cost.
Aside from the rise in Scottish limits there were few surprises in the review. "These increases are effectively just inflationary," said Owain Wright, head of the Care Funding Bureau. "While it is important for advisers to know of these changes, it is safe to say that they should have no impact on the long term care sector."
