The Liberal Democrats have challenged Theresa May to answer ten pressing key questions on the Dementia Tax, calling on her to come clean before the election takes place.
These include what level the cap will be set at, whether it will be uprated with house prices and whether it will include interest rates and arrangement fees.
Theresa May has also been challenged over how long surviving relatives will be able to stay in a family home and whether measures will be put in place to stop people avoiding the Dementia Tax.
- At what level will the cap on care costs be set?
How will it be uprated? Will it be in line with house prices?
Does the £100,000 floor apply to households or individuals?
Will the cap and £100,000 floor apply to care costs only, or will it also include accommodation costs?
Will people still need to pay an arrangement fee and interest for care costs, and if so how will these charges be set? The Royal Borough of Windsor & Maidenhead (RBWM) currently charges 2.25% interest and a £900 set up fee plus £300 a year (link).
Will interest fees and fee payments for care costs be included under the cap?
Will local councils have to pay the additional costs for this scheme or will they be fully reimbursed by the Treasury?
Will widows, widowers or dependent children be able to remain in the family home after their relative has died, especially where they are elderly themselves? Or will they be forced to sell the home to pay for care costs?
What interest rate will be charged on a deferred payment once the beneficiary has died? Royal Borough of Windsor & Maidenhead charge 8% if not settled within 90 days of death (link).
Will measures be put place to prevent people avoiding the Dementia Tax, for example releasing equity or gifting a house to children or grandchildren more than seven years before death?
The Liberal Democrats have committed in their manifesto to implementing the recommendations of the Dilnot Commission, which would mean a cap on care costs of £72,000
Norman Lamb, Liberal Democrat Shadow Health Secretary, said:
“It is simply not good enough to dodge difficult questions and proper scrutiny during the campaign over an issue that will have such a huge impact on people’s lives.
“Under these proposals, many would end up paying far more for their care.
“Families deserve to know now what the Dementia Tax will mean for their homes, finances and relatives.
“We have set out a clear set of questions Theresa May must answer in order to come clean to the British public and address their concerns.
“The Liberal Democrats will keep campaigning to scrap the Dementia Tax and ensure no-one has to worry about catastrophic costs to pay for their care.”
Nick Clegg has warned today (Saturday 27th May) that Theresa May’s plans to scrap free school lunches could hit children’s health by depriving hundreds of thousands of pupils of their 5-a-day.
It comes as the Liberal Democrats have unveiled a hard-hitting digital poster of a hungry child asking: “Please Theresa, May I have some more.”
Unlike school lunches, there are no nutritional guidelines or minimum portions for breakfasts. This means while pupils currently get at least two to three of their five a day with free lunches, with free breakfasts they could potentially get none.
Current standards would allow school breakfasts to consist mainly of processed breakfast cereals, toast with sweetened spreads, and there would be no limit on the total amount of sugar children can consume.
Nick Clegg said:
“Theresa May’s plans would hit children’s health by depriving them of a free nutritional meal at school.
“This is particularly short-sighted when we are struggling with soaring levels of childhood obesity.
“The Liberal Democrats will protect free school lunches for infants and ensure all primary school children can get a healthy, free lunch a day.
“Conservative candidates must make clear whether they will vote to take away lunches from hard-pressed families or stand up to Theresa May for the sake of the education and good health of our children.
“Theresa May should take her inspiration from Jamie Oliver not Oliver Twist.”
Responding to Theresa May’s announcement on social care in which she said “nothing has changed,” Liberal Democrat Leader Tim Farron said:
“May’s manifesto meltdown changes nothing. As Theresa May has made clear herself, nothing has changed and her heartless dementia tax remains in place. This is a cold and calculated attempt to pull the wool over people’s eyes.”
“Theresa May still wants to take older people’s homes to fund social care.”
Havant Liberal Democrat Candidate Paul Gray added: “The Dementia tax is a disgrace. Having been encouraged throughout their lifetimes to put money into bricks and mortar, our elderly are now told their homes could be ripped away from them. 96% of homes in our area could have to be sold to pay for this death tax. I will fight against it with all my vigour.”
The Institute for Fiscal Studies (IFS) has published a damning analysis of the Labour and Conservative manifestos, saying that neither party “has set out an honest set of choices.”
It says plans in the Conservative manifesto could do “serious damage” to the quality of public services such as the NHS and schools, while Labour’s tax rises may not raise anything like the tax revenues they have claimed.
The IFS has also previously stated that the revenue raised by the Liberal Democrats’ income tax rises, at around £6bn per year, is “more certain” than the revenue raised by Labour.
Liberal Democrat Shadow Chancellor Vince Cable said:
“Both the Conservatives and Labour are hiding the real impact of their plans from the public.
“Theresa May’s plans would decimate our public services while Jeremy Corbyn’s plans would decimate household finances.
“On top of that Labour has voted for Theresa May’s Brexit plans that will damage the economy and mean billions of pounds less funding for our schools and hospitals.
“The British people don’t have to accept this dismal choice, a brighter future is possible.
“The Liberal Democrats will put a penny on income tax to rescue the NHS and social care, and protect our economy and public services by fighting to stay in the single market and customs union.”
It was great to welcome to Tim Farron to the south coast today. Tim came to Portsmouth to visit the Mary Rose Academy, an excellent special school which the local Liberal Democrats were instrumental in getting built.
Tim, as ever, was open to chatting with the crowd and the assembled local and national press. Tim spoke passionately about the need to protect local services from a hard, divisive Brexit which would leave our economy severely damaged.
Then it was off again on the Lib Dem battle bus. Elections are tiring times for all those involved in the campaign as every second counts.
Having grown-up on Hayling, and having returned to the island some ten years ago, it is an honour and a privilege to offer my services to the people of my home town and the wider Havant area. I returned to our constituency after university in Manchester and a career in London.
My extensive management experience, gained in both the public and private sectors, would enable me to ensure Havant constituents are fiercely defended against any attempts to force yet more cuts to public services. Ultimately, I got involved in politics because I dearly love our neighbourhood, the people in it and care deeply about the issues which affect us all. I joined the Liberal Democrats as they echo my passionate vision for an open, tolerant, and united community.
Most recently I was involved with the successful relaunch of the Hayling Ferry service and the Save the Tip campaigns (which are happening all over our constituency). I also volunteer for the Queen Alexandra Hospital supporting our local nurses.
Primarily, I want our local area to be represented by someone who grew up here, knows the issues that are most important to local people, and calls this place home. This is in contrast to a career politician dropped into our constituency by Conservative HQ as if we were just a pin on their map.