A social care support threshold freeze since 2010/11 means that some people must spend an additional £12,400 of their own money before qualifying for state support, according to new analysis from The King’s Fund.   

Unlike healthcare, social care is means tested and only people with assets and savings below £23,250 qualify for state-funded support when they need it.

But The King’s Fund notes that this figure has been frozen for fifteen years, and if it had been uprated in line with inflation, it would have reached over £35,600 in 2026/27.

The independent charity is calling for this ‘stealth tax’ to be addressed as part of the major reform of the social care system in England, as promised by the new Prime Minister, Andy Burnham.

The analysis also found that around 220,000 self-funders in England have been subject to “further injustices” created by the system.

It explains that people who pay for their own care face much higher fees than those funded by the local authority, because many social care providers increase self‑funders’ rates to compensate for the lower fees paid by councils.

The Competition and Markets Authority in 2017 found a 41% difference between self-funder rates and local authority rates and there is nothing to suggest that this gap has been addressed, the King’s Fund said.

This means self-funders not only keep less of their savings but also see them disappear more quickly because they are charged significantly more than people receiving state support. 

The King’s Fund is calling on Andy Burnham to revise this threshold and bring it line with inflation.

Simon Bottery, Senior Fellow for Social Care at The King’s Fund, said: ‘The 15-year freeze to the thresholds is just one symptom of an unfair social care system resulting from reform being put off for decades. Governments have talked about change and even legislated for it but have not had the courage to implement it.   

“We welcome the new Prime Minister’s aim to buck this decades long trend. His words and actions have shown a renewed drive from the centre to force reform through, something that had been sorely lacking, and has put this issue near the top of the political agenda. 

“Wholesale reform is now needed. Currently, the system leads to a loss of dignity and independence for those in need of care. It also creates stress and anxiety for loved ones supporting people in need and worries about catastrophic care costs, whilst piling pressure on an already creaking NHS.”