The government is to set the cap on long-term care costs at £75,000, rejecting as too costly the £35,000 level proposed by economist Andrew Dilnot, according to reports.
According to The Sunday Times, chancellor George Osborne (pictured) rejected Dilnot’s proposed cap, contained in a government-commissioned report into long-term care funding, due to the £1.7 billion annual costs.
A £75,000 cap will cost the government around £700 million a year. The cap would not cover the cost of paying for accommodation or food.
The government will set out its long-term care plans in its mid-term review, to launched this afternoon, together with its state pension reforms.