Sissy, a widow age 82 from Devon, receives domiciliary care for 3 years. She then moves into residential care for 5 years. In total, it costs £172,600.
She has income of £300 per week. Her home is worth £210,000.
In the current system, Sissy spends £167,000 on care with the prospect of losing all her wealth apart from the last £17,500.
In the reformed system, Sissy pays £75,000 towards her care. She also contributes £12,100 per year to her general living costs while she is in the care home, like she had to pay for her food and bills in her own home.
The local authority pays £38,600 for her care fees once she has reached the cap.
She takes out a deferred payment with her local authority to pay the £75,000 for her care. Therefore, she does not have to sell her home to pay for her care during her lifetime.
Sissy has benefited from the cap covering home and residential care, and from deferred payment agreements.
Find out more about how the care and support funding reforms will work.