A government-proposed amendment to the Health and Care Bill that would have included local authority contributions in the social care cost cap has been defeated in the House of Lords.
Peers voted 198-158 against the proposed changes to the Care Act passed by the House of Commons in November.
MPs voted to change the Bill so that any help from government would count towards the £86,000 cap, meaning that only private contributions would be included.
The changes was estimated to save the government £900m a year by 2027.
Anita Charlesworth, director of research and the REAL Centre at the Health Foundation, said the Lords vote was the “right decision”.
“[The proposed change] has substantial real-world consequences for those with lower assets, in effect increasing the time it could take for them to reach the £86,000 cap on care costs.
‘When MPs originally voted in support of the government’s amendment they were effectively voting in the dark. Research from the IFS and the Health Foundation has since shown that the change would leave more people worse off compared to the original reform proposals.”
Charlesworth added: “Among older people, those most affected are those with modest assets and wealth, and by region, those living the North East, Yorkshire and the Humber, and the Midlands. It will also disproportionately affect working age adults with disabilities.
“Now that MPs have more information about the consequences of this change we urge them to follow in the footsteps of the Lords and reverse what would be a regressive change and one that is opposite to levelling up.”
A Department of Health and Social Care spokesperson said: “Our social care charging reform proposals provide a limit to the cost of care for everyone and strike the right balance between public contributions and people’s personal responsibility for planning for their care.
“They are necessary, fair and provide certainty and reassurance so people can both plan for their future and pass on more of what they have saved to their loved ones.”
