Care cap confusion widespread, say advisers

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Just 4% of advisers feel they understand the newly introduced care cap completely, nor is it yet widely known about or understood by the public or long term care advisers, a new survey suggests.

While few felt they understood it completely, 92% felt they knew it well enough to explain it to clients. The survey by Symponia, an organisation for long term care advisors, of around 90 of its members, 92% were seeing the majority of their clients unaware of the care cap.

Of those who were aware 68% thought that the total limit of payable care was the £72,000 cap which only covers eligible care. 72% of advisers mention it in their first meeting with a client. The figures suggest a sharp decline in knowledge and understanding of the cap compared to a survey last year which found 82% were at least aware of it 

Providing tax relief for care fee savings plans was supported by 84% of advisers. The suggestion recently put forward by the Labour party to fund care costs by an increase in national insurance contributions was thought workable by just 12% of advisers.

Support for universal planning for future care needs stood at 50% of advisers while 29% felt it was difficult for people to prepare for care since the end of pre-funded products. The idea of a "care ISA" was supported by 64% of advisers.

It was felt that both the government and FCA were not taking care fee planning seriously enough, 72% agreed for the government and 56% agreed for the FCA. The results follow a recent call for health and social care funding to be merged and criticising the responses of the insurance industry to the care cap.

Janet Davies, managing director and joint founder of Symponia says,"It is clear that the Coalition is still missing the mark and has a long way to go yet to crack the issues on elderly care funding.

"The survey has tapped into a mood of advisers feeling unsupported generally; the fact that 72 per cent of respondents think that the government does not take care fees seriously enough and that over half say the same about the FCA speaks volumes.

"With regard to dedicated care fees products, it is encouraging that Symponia members, are not hiding behind the current lack of product choice and that they are still putting advice at the heart of the matter."

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