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- Cameron has told Nick Clegg that he will implement recommendations that cap the amount individuals pay at £35,000
- Senior Coalition sources say the Prime Minister will find the £1.7billion annual costs of the plan in the next public spending review
- Last year more than 24,500 people had to sell their homes to pay the bills – a rise of 20 per cent in a decade
David Cameron has pledged to end the heartache of tens of thousands of elderly people who are forced to sell their homes to fund long-term care.
He has told Nick Clegg and senior Tories that he will implement recommendations that cap the amount individuals pay at £35,000 – with the taxpayer picking up any further bills.
Senior Coalition sources say the Prime Minister will find the £1.7billion annual costs of the plan in the next public spending review.
Last month Health Secretary Andrew Lansley announced that the Dilnot proposals were being put on ice after the Treasury said they were unaffordable.
But the Mail has learned from senior Tories and Liberal Democrats that Mr Cameron has had a dramatic change of heart and is determined to press ahead with the plans.
The Prime Minister and Mr Clegg both want to announce this autumn that they will implement the Dilnot recommendations in order to put the Coalition back on track.
They plan to insert the pledge to enforce the proposals in 2017 into the Government’s Care and Support Bill.
They see it as a key legacy project for the Government that will show the two parties working together to solve a major problem that affects millions.
At the moment anyone with assets over £23,250 has to bear the cost of their own care. Last year more than 24,500 people had to sell their homes to pay the bills – a rise of 20 per cent in a decade.
Under the proposals drawn up by economist Andrew Dilnot, the cap would be set at £35,000, after which the Government would pick up the tab.
The initial £35,000 could be funded by an insurance policy taken out by people while they are still working.
He also recommended that the £23,250 means test threshold should go up to £100,000.
It is understood the Coalition will also honour this proposal.
The Mail has learned that Mr Cameron decided to implement the Dilnot report a week after Mr Lansley put it on the back burner.
He informed Mr Clegg of his decision and then told senior Tories, including the Health Secretary, before revealing his decision to the rest of the Cabinet at a meeting before the summer break.
Since then intensive discussions have been going on behind the scenes between Downing Street, the Department of Health and the Treasury.
A senior Conservative source said: ‘The Prime Minister told the Cabinet before the recess. He said “We’ve got to do Dilnot. We’re going to do this”.’
A senior Lib Dem source added: ‘It’s definitely on. Cameron came to us and said… “Will you back me?” and we were thinking “that’s what we’ve been pushing for months and months”.’
Mr Clegg hinted at the change of heart last week when he said: ‘I personally have also felt we should go further and faster to deliver a properly funded system of social care for the elderly.’
In addition to the Dilnot proposals, which primarily benefit pensioners with large homes, Lib Dems are also trying to win Tory support for moves to do more to help the poorest pensioners who have few assets. A Whitehall source added: ‘They’ve come to the conclusion they’d be mad not to do it. It’s all about the legacy.
‘It means both the Conservatives and Lib Dems can turn round in 2015 and say – we sorted out social care. No one will have to lose their homes to pay for nursing home care any more.
‘That’s a pretty big achievement – and would appeal to both sets of voters.’ Ministers have considered raising the £35,000 threshold in order to reduce the costs of the Dilnot plan.
But officials say that the Coalition is minded to implement the proposals in full since they command the support of charities and other care pressure groups.
Such a move would also make it more difficult for Labour to object, since they have also called for a deal.
By delaying the implementation of the plans until 2017, the Chancellor will not have to find the extra cash until the spending review in 2014.
‘The debate is not about the size of the cap, it’s about when you bring it in,’ one source with knowledge of the discussions said.
The Treasury is expected to argue that the plan should be paid for out of the general NHS budget.
But that could create problems for Mr Cameron because Labour could argue that funding care was robbing hospitals and frontline services of cash. ‘The idea is to announce that the money will be found,’ one Whitehall official said.
‘If the Prime Minister says we’ll find the money then George will have to find the money.’
A Downing Street spokesman denied a date had been set for an announcement but confirmed Mr Cameron wanted to act and that serious discussions were under way.
He said: ‘We are keen to get social care right for the long-term. It is not in the long grass.’
He has told Nick Clegg and senior Tories that he will implement recommendations that cap the amount individuals pay at £35,000 – with the taxpayer picking up any further bills.
Senior Coalition sources say the Prime Minister will find the £1.7billion annual costs of the plan in the next public spending review.
Last month Health Secretary Andrew Lansley announced that the Dilnot proposals were being put on ice after the Treasury said they were unaffordable.
But the Mail has learned from senior Tories and Liberal Democrats that Mr Cameron has had a dramatic change of heart and is determined to press ahead with the plans.
The Prime Minister and Mr Clegg both want to announce this autumn that they will implement the Dilnot recommendations in order to put the Coalition back on track.
They plan to insert the pledge to enforce the proposals in 2017 into the Government’s Care and Support Bill.
They see it as a key legacy project for the Government that will show the two parties working together to solve a major problem that affects millions.
At the moment anyone with assets over £23,250 has to bear the cost of their own care. Last year more than 24,500 people had to sell their homes to pay the bills – a rise of 20 per cent in a decade.
Under the proposals drawn up by economist Andrew Dilnot, the cap would be set at £35,000, after which the Government would pick up the tab.
The initial £35,000 could be funded by an insurance policy taken out by people while they are still working.
He also recommended that the £23,250 means test threshold should go up to £100,000.
It is understood the Coalition will also honour this proposal.
The Mail has learned that Mr Cameron decided to implement the Dilnot report a week after Mr Lansley put it on the back burner.
Tough: At the moment anyone with assets over £23,250 has to bear the cost of their own care, which leads to many distressed pensioners selling their homes (file picture)
He informed Mr Clegg of his decision and then told senior Tories, including the Health Secretary, before revealing his decision to the rest of the Cabinet at a meeting before the summer break.
Since then intensive discussions have been going on behind the scenes between Downing Street, the Department of Health and the Treasury.
A senior Conservative source said: ‘The Prime Minister told the Cabinet before the recess. He said “We’ve got to do Dilnot. We’re going to do this”.’
A senior Lib Dem source added: ‘It’s definitely on. Cameron came to us and said… “Will you back me?” and we were thinking “that’s what we’ve been pushing for months and months”.’
Mr Clegg hinted at the change of heart last week when he said: ‘I personally have also felt we should go further and faster to deliver a properly funded system of social care for the elderly.’
Changes: Cameron has told Nick Clegg and senior Tories that he will implement recommendations that cap the amount individuals pay at £35,000 - with the taxpayer picking up any further bills
‘It means both the Conservatives and Lib Dems can turn round in 2015 and say – we sorted out social care. No one will have to lose their homes to pay for nursing home care any more.
‘That’s a pretty big achievement – and would appeal to both sets of voters.’ Ministers have considered raising the £35,000 threshold in order to reduce the costs of the Dilnot plan.
But officials say that the Coalition is minded to implement the proposals in full since they command the support of charities and other care pressure groups.
Such a move would also make it more difficult for Labour to object, since they have also called for a deal.
By delaying the implementation of the plans until 2017, the Chancellor will not have to find the extra cash until the spending review in 2014.
‘The debate is not about the size of the cap, it’s about when you bring it in,’ one source with knowledge of the discussions said.
The Treasury is expected to argue that the plan should be paid for out of the general NHS budget.
But that could create problems for Mr Cameron because Labour could argue that funding care was robbing hospitals and frontline services of cash. ‘The idea is to announce that the money will be found,’ one Whitehall official said.
Heartbreaking: Last year more than 24,500 people had to sell their homes to pay the bills - a rise of 20 per cent in a decade
A Downing Street spokesman denied a date had been set for an announcement but confirmed Mr Cameron wanted to act and that serious discussions were under way.
He said: ‘We are keen to get social care right for the long-term. It is not in the long grass.’
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