Social care reforms scrapped: What it means for you

In the past few weeks, there's been a lot of talk about the government’s plans for our money. So much so that you’ll be forgiven for missing the announcement that they’ve decided to cancel the planned cap on social care costs.

At the end of last month, the chancellor, Rachel Reeves, announced that the changes to adult social care charging, which were supposed to happen in October 2025, now won’t go ahead. This will save the government £1.1 billion by the end of 2025-26.

Reeves said she had to cancel the plans because the government would overspend by £21.9 billion by the end of 2024-25 because the Conservatives had made promises without having the money to pay for them.

Charities have widely criticised the decision to cancel the reforms, which were first proposed 13 years ago.

Sarah Woolnough, chief executive of The King’s Fund, said: “The current social care system in England is not fit for purpose.

“The government now has no plan to address the core issue in adult social care – the growing mismatch between the population’s need for support and the availability of publicly funded care. Since 2015/16 more people in England have been requesting social care support but fewer are receiving it. The result is that many people’s needs are going unmet.”

The social care reforms were made into law in 2014 but have been delayed and changed many times over the years. The latest plan was to start them in 2025, but now that's not happening.

What were the social care reforms about?

The UK's social care system has been struggling for years, with more and more people needing care and not enough money to pay for it. Some of the key issues include:

• costs of care going up
• differences in the quality of care across the country
• lack of joining up between health and social care services
• families and individuals struggling to pay for care

What did the social care reforms set out to do?

The reforms were meant to address and fix the problems within adult social care by:

• Capping how much people have to pay for their care over their lifetime (£86,000 in England)
• Raising the amount of money people can have and still get help from the council (from £23,250 to £100,000)
• Improving the quality of care and making health and social care work better together

These changes were expected to help protect people from losing most of their savings and assets to pay for care, and make the care system work better overall.

However, the government has now decided to cancel these reforms. This means the problems in the social care system will continue, and people may still face high costs and inconsistent care.

During the election campaign, both the Conservatives and Labour said they would go ahead with the reforms. But the new chancellor says there wasn't enough money set aside to make them happen.

Local councils are already struggling with the rising costs of adult social care, and they're worried that any further cuts to funding would be "unthinkable".

What does this mean for you?

If you or a loved one need social care in the future, you may not get the same protections and improvements that were promised. The system will likely continue to be under a lot of pressure, with high costs and uneven quality of care.

It's a complex issue, and there are still many questions about how the government will support social care going forward. But the cancellation of these reforms is a setback for those hoping for a fairer and more effective social care system in the UK.

What is social care?

Social care helps people live independently with practical support due to illness, disability or age. These services are provided in people’s homes, care homes or elsewhere in the community.

How can I get help with social care?

To access social care, you apply for a needs assessment from your council. This assessment is free and checks how much help you need. If you need care, your local council will then do a financial assessment to work out what you will have to pay towards the cost of your care.

If you have less than £23,250 in savings, you might qualify for extra support. How much you’ll get will depend on your personal circumstances.

If your local council decides to pay towards your care, you’ll get a personal budget. You can choose to take this in three ways:

• A direct payment into your bank account
• The council arranges your care directly
• An organisation you chose manages your personal budget

What else am I entitled to?

Some things aren’t means tested, which means they can be offered to anyone needing extra care, including:

• Bits of equipment or home adaptations that cost less than £1,000
• Care after you’ve been discharged from hospital