Theresa May announces 'dementia tax' U-turn

British Prime Minister Theresa May 
British Prime Minister Theresa May  Credit: JUSTIN TALLIS/AFP 

Theresa May has announced a dramatic U-turn on the Conservative's controversial plans for social care dubbed by critics as a "dementia tax".

The Prime Minister's plans for social care reform which will see pensioners asked to contribute more to the cost of their care will now include a cap on total contributions.

However, just last week Jeremy Hunt, the Health Secretary, described a cap on care costs as unfair. 

The Tories' policy will still offer protection for people with assets of £100,000 or less - a sharp increase on the current £23,250 threshold.

Speaking at a campaign event in Wrexham, Mrs May said: "Since my manifesto was published the proposals have been subject to fake claims made by Jeremy Corbyn. 

"The only things he has left to offer in this campaign are fake claims, fear and scaremongering. 

"I want to make a further point clear. This manifesto says that we will come forward with a consultation paper, a government green paper and that consultation will include an absolute limit on the amount people have to pay for their care costs. 

"So let me reiterate: We are proposing the right funding model for social care. We will make sure nobody has to sell their family home to pay for care. We will make sure there is an absolute limit on what people need to pay. You will never have to go below £100,000 of your savings so you will always have something to pass on to your family."

Mrs May's comments appear to put her at odds with her own Health Secretary who told the BBC last week: "Not only are we dropping it (the cap) but we are dropping it ahead of a general election and we're being completely explicit in our manifesto that we're dropping it.

"We're dropping it because we've looked again at this proposal and we don't think it's fair. 

"The reason we don't think it's fair is because you could have a situation where someone who owns a house worth a million pounds, two million pounds, has expensive care costs of perhaps one or two  hundred thousand pounds, ends up under that proposal not having to pay those care costs because they're capped and those costs get born by taxpayers, younger families who are possibly themselves struggling to make ends meet."

It comes after Boris Johnson suggested the controversial plans to force pensioners to contribute to the costs of their care could be watered down.

The reforms, unveiled in the Conservative party manifesto last Thursday, mean more pensioners will have to contribute to the cost of their care, although they will not have to pay during their lifetime.

They have been criticised as a “dementia tax” because sufferers of the disease living at home will have to pay while people with cancer in hospital would not.

Mr Hunt told the London Evening Standard on Monday: “We want to make sure that people who have worked hard and saved up all their lifetimes, do not have to worry about losing all their assets through a disease as random as dementia.

“That’s why we want to introduce and absolute limit on the amount of money anyone has to pay for their care.”

Surveys published on Saturday found a majority of voters were against the policy.

A study by YouGov carried out after the policy was unveiled found that four in 10 of voters oppose the measure, against 35 per cent in favour.

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