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Lib Dems to launch mock estate agents attacking May’s Dementia Tax for taking 57.2% of average house in Folkestone and Hythe

June 2, 2017 2:29 PM
Originally published by Folkestone and Hythe Liberal Democrats

Theresa May & CoA mock estate agency called "Theresa May and Co" has been launched by the Liberal Democrats today attacking Theresa May's Dementia Tax.

The Conservative policy would force the sale of family homes to fund care for elderly and vulnerable relatives.

The party has estimated that the Dementia Tax would cost £125,884, for someone receiving ten years of care living in an average-priced home in Folkestone and Hythe.

Across Folkestone and Hythe, 57.2% of the value of the average home would be wiped out to pay for the Dementia Tax.

Liberal Democrat Lynne Beaumont, said:

"Theresa May wants to force you to sell your house if you need long-term care.

"The effects of this cruel and unfair policy will be massive, and will have a huge people on people across our community.

"Elderly and vulnerable people across Folkestone and Hythe face losing over half the value of their home to fund this ill-conceived policy, with nine out of ten homes potentially at risk.

"This is like a new type of inheritance tax - but one that's targeted at people of modest means, not the wealthy. The Conservatives want to tax ordinary hardworking families out of their savings and homes if their relative is unfortunate enough to need years of care: it is grotesquely unfair.

"There is a week left in this campaign: if Theresa May fails to come clean to the British public, how can she be trusted?

ENDS

NOTES TO EDITORS:

The Liberal Democrat's mock Estate Agents' website can be found here.

Analysis by the Liberal Democrats has shown that if a cap was introduced at £200k, the costs of care for those with long-term conditions could wipe out over half of the value of an average family home.

This is assuming 10 years of domiciliary care at a cost of £14,560 a year as well as charges including estate agent fees, deferred payment fees, interest

payments and legal fees. This would cost a total of £173,282, or 54% of the average house price of £317,000

1. Cost of domiciliary care based on £14,560 average annual spend per person per annum - £20 per hour and 14 hours a week (link)

2. The average house price in May 2017 was £317,281 (link)

3. Currently Local Authorities administer Deferred Payment Agreements to allow self-funded care users to use their house to meet the costs of their care home (domiciliary care is not currently eligible), and recoups the spending once the holder of the agreement dies and the house is sold. Under the Conservatives proposed dementia tax, Deferred Payment Agreements would need to be extended to fund home care.

4. The Royal Borough of Windsor & Maidenhead (RBWM) currently charges 2.25% interest and a £900 set up fee plus £300 a year charge (link) for a deferred payment agreement.

5. DPA Interest Rate is latest publicly available from here.

6. Estate Agents fees are estimated to be 4%.