We store cookies on your device to make sure we give you the best experience on this website. I'm fine with this - Turn cookies off
Switch to an accessible version of this website which is easier to read. (requires cookies)

Liberal Democrats set 10 questions for Theresa May on the “Dementia Tax”

May 28, 2017 1:53 PM
Originally published by South Lincolnshire Liberal Democrats

Rarely has such an ill-thought out policy made it into a manifesto. The Tory proposals for what's been dubbed a "dementia tax," going back on previous proposals to set a cap on care costs for those who need care, don't even seem to have the agreement of senior Conservatives. In fact, if the Sunday papers are to be believed, they don't even have the backing of Theresa May's two chiefs of staff.

Vince Cable outlines the main issues here:

The Liberal Democrats have today put 10 questions to Theresa May on the implementation of this policy. Her speech last Monday was initially presented as a u-turn. She then claimed in her Andrew Neil interview that it was anything but. Voters need to know exactly what this policy means before they go to the polls in 11 days' time.

The questions are:

1. 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?

3. Does the £100,000 floor apply to households or individuals?

4. Will the cap and £100,000 floor apply to care costs only, or will it also include accommodation costs?

5. Will people still need to pay an arrangement fee and interest for care costs, and if so 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.

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

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

8. Will widows, widowers or dependent children be able to remain in the family home after their relative has died, especially where they are elderly themselves? Or will they be forced to sell the home to pay for care costs?

9. What interest rate will be charged on a deferred payment once the beneficiary has died? Royal Borough of Windsor & Maidenhead charge 8% if not settled within 90 days of death.

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

Norman Lamb said:

It is simply not good enough to dodge difficult questions and proper scrutiny during the campaign over an issue that will have such a huge impact on people's lives.

Under these 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.

We have set out a clear set of questions Theresa May must answer in order to come clean to the British public and address their concerns.

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.