Social assistance cover explains: What the new social assistance bill means for you

Today (Monday 22 November) there will be a vote on an amendment to the Social Welfare Bill, which has come under fire.

There are plans for a social cap of £ 86,000 on how much individuals should pay for their own social costs.

Once that £ 86,000 is reached, the goal is for the local authority to step in and see if the person in need of care is eligible for additional help.

It was first proposed over 10 years ago by economist Sir Andrew Dilnot in a government-commissioned review.

The upper limit is intended to enable people who are affected by high social costs to pass more of their wealth on to their children.

However, the government has come under fire as it is still likely that those who are not that wealthy will not benefit much from this system.

What effects will the new social welfare law have?

For many people in need of social care, there could be a problem as income-based support from local authorities for low-income households no longer goes towards the £ 86,000 ceiling.

As a result, these families will have to spend more of their own money on care before they can reach the limit of life.

This is a change from Sir Dilnot’s original recommendations, and he criticized the government’s plans in the Daily Mail, arguing that it meant “the less wealthy will not benefit from the cap”.

Financial expert Martin Lewis also slammed the proposal when it appeared on the Andrew Marr Show and kept breaking it up.

He said, “Everyone assumed they would follow Andrew Dilnot’s suggestion because they spoke about this language.

“There are two protections in the Dilnot proposals for people on welfare. One is a cap: £ 86,000. You don’t have to pay any more money.

“The other is means testing, where the state pays part of your welfare, and the two have worked together in making proposals.

“What happened is that the government said they weren’t going to interact.

“So effectively, it was thought that if you were receiving means-tested assistance and the government paid some of your welfare, it would, along with any private money you invest, go towards your price cap.

“But it won’t be anymore. If you are very wealthy, you would not have means-dependent support, but means-dependent support does not matter for those with lower incomes and less wealth, “he added.


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