1 in 4 wrongly believe government will pay for care

Author: Daily Telegraph - Sep 18, 2009

One in four people mistakenly believes the Government will pay for all of their care in old age, according to a Department of Health survey.

In addition, half of those questioned underestimated the true cost of moving into a care home in their twilight years by as much as £20,000.

The figures have been disclosed as ministers try to raise awareness of radical reforms to the "creaking" system of social care for elderly and disabled people in England.

The reforms, announced in July, could include compulsory charges to cover the cost of nursing home care or home help and establish a “National Care Service”.

However, fears have been raised that middle-class pensioners with savings could be forced to pay over the odds for care services under the system after Andy Burnham, health secretary, said the poor will pay less.

The new survey found that 51 per cent of people mistakenly believe that the cost of residential care in old age would be £10,000 or less.

The true average cost for a 65-year-old is around £30,0000, while for those suffering conditions such as dementia, the cost could reach as much as £200,000.

The research also showed that more than a quarter of people thought that residential care in old age would be free, with the Government meeting the cost.

The gap between expectation and reality was even wider among those anticipating being cared for in their own homes.

More than two thirds of people think home care will cost £10,000 or less, of which 30 per cent expect care to be free.

The reality is that all care and support is means-tested and anyone with assets of more than £23,000 can expect to pay at least some of the costs.

Under the current system, this means thousands of pensioners who have worked all their lives and put money away are penalised and often have to sell their family homes or use up planned inheritance funds on care.

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