Tuesday 14 September 2021 / 10:00 AM Jonathan Ashworth

New analysis finds homeowners in the North, Yorkshire and the Humber, and the Midlands face the brunt of the Government’s new social care plan

New analysis finds homeowners in the North, Yorkshire and the Humber, and the Midlands face the brunt of the Government’s new social care plan

 

  • New analysis shows homeowners in the North could face care costs of up to three fifths of their assets, including the value of their home.
  • Those in Yorkshire and the Humber could face costs of around half of their assets, while those in the East and West Midlands could face care costs of around two fifths of their assets.
  • In comparison, homeowners in London face costs of just 17% of their assets.
  • This means homeowners in the North, Yorkshire and the Humber, and the Midlands, with significant care needs, are more likely to have to sell their homes and will lose more of the value of it.

 

New analysis of assets held by homeowners in different regions of the UK show that those in the North, Yorkshire and the Humber, and the Midlands face losing a higher proportion of their assets if they have high care needs and hit the £86k care cap.

 

Homeowners in the North East have average financial and property assets worth over £145,000, meaning they face costs worth 59% of their total income if they hit the care cap because of high care needs.

In comparison, the average Londoner faces costs worth just 17% of their income if they have high care needs and hit the cap.

 

Region Maximum care costs as % of average assets
North East 59%
North West 48%
Yorkshire and the Humber 48%
East Midlands 41%
West Midlands 41%
East 28%
London 17%
South East 24%
South West 31%

 

 

In some constituencies in London homeowners face losing just 7% of their assets (Kensington), compared to 80% in some Northern seats (e.g Middlesbrough).

 

This comes despite a guarantee in the Conservatives’ 2019 manifesto “that no one needing care has to sell their home to pay for it”.

 

This follows analysis by the Resolution Foundation, who found that “the cap, which does not benefit households with less than £100,000 in capital, will be of relatively more help in the more affluent areas…it will offer most protection to those living in high wealth parts of England. This is not just because of the obvious reason that a cap set in cash terms offers far more protection to those with higher-value assets to lose.”

 

Jonathan Ashworth MP, Labour’s Shadow Health Secretary, said:

 

“Tory MPs across the North, Yorkshire and the Humber, and the Midlands are imposing on their hard working constituents an unfair punishing tax rise which does not even fix social care, won’t prevent people selling their houses and risks care homes going bust.

 

“Social care is in desperate need, but the Prime Minister – along with every Conservative MP – was elected on a manifesto that promised to fix the system on a plan that had been developed and would mean no one would have to sell their home. On both, he broke his promise.”

 

Ends