Why Bother Cutting Inheritance Tax if you’re forcing Pensioners to sell their Home to Pay for their Care?

16 Sep 2015

The Liberal Democrats are calling for the Government to prioritise capping care costs before raising the threshold for inheritance tax.

In 2011, the Dilnot Commission published a report which recommended that care costs be capped, so that no one would pay more than £70k for their care, and that the government would pick up the bill for any costs exceeding this.

The Coalition Government responded by passing the Care Act in 2014, that would implement a cap of care costs by 2016. All three major parties promised to implement the cap on care costs in the general election campaign back in May.

However, in July, shortly after the election, the Government suddenly announced that the cap would be delayed by at least four years. Many believe that this will lead to it being scrapped completely, with over £100m already spent on preparations for the measure going to waste.

Former health Minister Norman Lamb MP recently condemned the move, saying that such a u-turn is an "outrageous betrayal" of the electorate.

County Lib Dem Leader Simon Galton said: "We're putting a motion to Leicestershire County Council calling for the Government to prioritise implementing the care cap before using government money to cut taxes for the wealthy.

There's no sense in increasing the allowance threshold for inheritance tax while continuing to run a care system where many elderly people are forced to sell their home to pay for their care."

We're hoping that the other parties will support this call so we can hand the government a strong united message from Leicestershire."

Councillor Sarah Hill said: "I was shocked and appalled to hear the Tories u-turn on capping care costs. It was a strong coalition policy and a key promise in their 2015 election campaign.

To renege on it now would be a huge insult to the voters who expect them to keep their election promises."

This cap can be afforded if the government makes the right choices. That is why we are calling on them prioritise capping care costs for pensioners before cutting inheritance tax."

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