Labour has effectively ditched the long-awaited social care cap despite Wes Streeting pledging during the campaign that it would go ahead.
Chancellor Rachel Reeves announced that the reforms, including an £86,000 cap on the amount anyone in England has to spend on their personal care over their lifetime, will not happen in October next year.
In a dramatic statement to the Commons, she said the policy was a victim of a £22billion black hole the Tories had left in the public finances.
The Treasury said the changes were ‘now impossible to deliver in full to previously announced timeframes’, and will save £1billion next year.
But Health Secretary Mr Streeting had tried to quell fears about the plans when they did not appear in Labour’s manifesto.
Labour has effectively ditched the long-awaited social care cap despite Wes Streeting pledging during the campaign that it would go ahead (file picture of care home)
Chancellor Rachel Reeves announced that the reforms, including an £86,000 cap on the amount anyone in England has to spend on their personal care over their lifetime, will not happen in October next year
Asked in June whether he was committing to bringing in the cap in October 2025, Mr Streeting told BBC Radio Four’s Today programme: ‘That’s the plan, as things stand.’
When put to him that did not sound like a firm commitment, he responded: ‘We don’t have any plans to change that situation and that’s the certainty and stability I want to give the system at this stage.’
Steven Cameron, Pensions Director at Aegon, said the decision was a ‘bitter blow’.
‘The announcement that the government will not be taking forward the previous government’s deal on social care funding will be a bitter blow to those facing unlimited bills for adult social care,’ he said.
‘Social care funding is a major concern to millions of families but had been noticeably absent from the Government’s election manifesto and the King’s Speech.
‘Cancelling the deal, which was to have started in October 2025, means individuals will no longer have their contributions towards eligible care costs capped at £86,000. Instead, as currently, those requiring care for longer periods face catastrophic care costs which can wipe out a lifetime of savings…
Health Secretary Mr Streeting had tried to quell fears about the plans when they did not appear in Labour’s manifesto
‘Unfortunately, as now, those who’ve done the right thing and saved for their later life could see it all – and their family home – disappear to pay for care, destroying plans to leave an inheritance to loved ones.’
Labour’s manifesto did pledge to create a previously-suggested national care service, with locally delivered services based on the principle that people must be supported to live independently for as long as possible.
It also promised a fair pay agreement, setting fair pay, terms and conditions.
The party said it would ‘consult widely’ on the design of the agreement ‘before beginning the process and learn from countries where they operate successfully’.
