The good, the bad and the unknown of the Conservative manifesto
Just a few hours after the launch of Theresa May’s Tory manifesto we’ve already had a few calls from concerned older people. Evidently the devil is in the details but our staff here have been quickly trying to digest these proposals;
The real winners here are people who go into care homes and have more than £23,250 in savings and assets. If enacted this manifesto will see them able to pass on over four times as much (£100,000).
To pay for this we are seeing three main changes. The first is the most troubling – people receiving care at home will now see the value of the house used in calculations. This means anyone in Luton with their own property will pay 100% of their care costs no matter how low their income is – the idea that they will be able to take out an equity release product to cover this will be a scary prospect to many pensioners.
The second change is the loss of the triple lock. Pensions will no longer rise by a minimum of 2.5% but will still be linked to average earnings and inflation. Inflation is currently at a 4 year high of 2.7% we would expect pensions to grow slower than previously.
The final cost saving mechanism is the loss of the winter fuel payment for better off pensioners.
What constitutes a better off pensioner?
Will current disregards of the value of a home remain in place?
Will equity products contain additional charges for older people (and if so will these be capped)?
What advice will be provided to older people needing an equity release product for these purposes?
Will we ever see an insurance based product to cover the cost of care?