Key industry figures are urging the Prime Minister to reconsider the introduction of the proposed ‘dementia-tax’ if a minority government is formed.
A key point of criticism in the Conservative manifesto, the so-called dementia tax proposed to align the means test for residential and domestic social care.
Currently, the council will only fund residential care costs if an individual’s assets, including property, fall below £23,250. The threshold is the same for domestic care, although the main residence is excluded from the valuation.
The Conservatives proposed to raise this minimum asset threshold to £100,000, but pledged to include the value of property in the means test for both residential and domiciliary care.
The proposals have largely been criticised for the impact they could have on inheritance, especially in the wills and probate market.
Expressing his disapproval of the pledged reform was Chris Milward. The chief executive of the Institute of Legacy Management stated:
‘If the Conservatives are to form a minority or coalition government, we hope to see an urgent review of the so-called ‘dementia tax’. This is an unpopular policy that could result in a significant financial burden on those needing long-term care, which will mean they are unable to use their assets as they wish – whether leaving them to their loved ones or the charitable causes they believe in.
‘We will watch carefully over the coming days and weeks as the new government forms and their plans become clear, and will continue to champion the interests of our members, and charities and their donors, to ensure that every gift achieves its greatest potential.’