10 Questions Theresa May must answer on the dementia tax

May 28, 2017 5:00 PM
Originally published by UK Liberal Democrats

Under Theresa May's proposals, many would end up paying far more for their care. Families deserve to know now what the Dementia Tax will mean for their homes, finances and relatives. The Liberal Democrats will keep campaigning to scrap the Dementia Tax and ensure no-one has to worry about catastrophic costs to pay for their care.

10 Questions Theresa May must answer on Dementia Tax

1. At what level will the cap on care costs be set?

Just this morning Amber Rudd said that there would be a cap -but that she didn't know at what level it would be set. That contradicted both Theresa May and the Conservative manifesto. It's time for Theresa May to come clean - at what level will the cap on care costs be set?

2. How will it be uprated?

Will it be in line with house prices? Inflation? Some other measure? The British people deserve to know.

3. Who does the £100,000 floor apply to?

Does the £100,000 floor just apply to households? Or does it also apply to individuals?

4. Will the cap and £100,000 floor apply to care costs only?

Does the cap just apply to care costs or will it also include accommodation costs? Theresa May must come clean.

5. Will people need to pay an arrangement fee and interest?

Will people have to pay arrangement fees and interest on Deferred Payment Agreements for care costs, and if they do how will these charges be set?

The Royal Borough of Windsor & Maidenhead (RBWM) currently charges 2.25% interest and a £900 set up fee plus £300 a year (read more here).

6. Will interest fees and fee payments for care costs be included under the cap?

Because if they aren't - vulnerable elderly people could be hit with massive fees and charges, even after they sell their home.

7. Will local councils have to pay the additional costs for this scheme or will they be fully reimbursed by the Treasury?

If councils do have to pay additional costs that'll be another drain on already stretched council budgets and cause even more cuts.

8. Will widows, widowers or dependent children be able to remain in the family home after their relative has died?

Forcing widows, widowers and dependent children to leave their homes after losing a relative - especially where they are elderly themselves would be an absolute disgrace. So would they be forced to sell the home to pay for care costs.

Theresa May must come clean on what her dementia tax will mean for the families of those affected.

9. What interest rate will be charged on a deferred payment once the beneficiary has died?

The Royal Borough of Windsor & Maidenhead charge 8% if not settled within 90 days of death - will the charge be similar? Higher? Lower?

10. Will measures be put place to prevent people avoiding the Dementia Tax, for example by releasing equity or gifting a house to children or grandchildren more than seven years before their death?

The Liberal Democrats have committed in their manifesto to implementing the recommendations of the Dilnot Commission, which would mean a cap on care costs of £72,000