Theresa May’s Dementia Tax – View From ”The City”

@Labour Left

This quote from the city worker on the dementia tax:

”The Conservatives will attempt to soften the blow by promising that pensioners will not have to sell their homes to pay for their care costs while they or a surviving partner are alive. Instead, ‘products will be available’ allowing the elderly to pay by extracting equity from their homes, which will be recovered at a later date when they die or sell their residence.

I have just seen this post online:

‘People need to read the small print associated with this because its a lot nastier than it looks.

I work in the City. The insurance industry was approached by the Government several months ago with the aim of creating a new market for a ”new product.”

This arrangement is a culmination of those discussions. You won’t have to sell your house PROVIDED that you purchase an insurance product to cover your social care. The “premiums” would be recovered from the equity after the house has been sold and the Insurance company will have a lien on the house and can force a sale if it wants to. So your offspring can’t keep it on the market for long in order to get the best price.

The real kicker in this is that in order to encourage the industry to market these products the government guaranteed that there would be no cap on the premiums.

This was in some ways “attonement” for Osborne’s destruction of the highly lucrative annuties market. This means that the premiums could be up to (and including) the entire remaining equity in the property after the government has taken its cut. Companies will be falling over themselves to get their snouts in this trough.

In short your offspring and relatives could get absolutely nothing from your estate.  If you buy one of these products you need to read the small print very very carefully indeed because there will be some real dogs on the market.

I suspect that this is another financial scandal waiting to happen, but by the time it does May will be long gone.”’

Thanks to a Comment @ NLAT for this insight!

Another Comment @ NLAT:  ”As I said elsewhere, she is picking on those who bought their council homes during the eighties.

If during the eighties you bought your council house for £100,000 but now it is worth like £600,000, what Theresa May is going to do is take all the positive equity of £500,000 and leave you with the original purchase price.

If over those years you have built up a large family, that £100,000 is going to become like pocket money to your offspring rather then an investment that helps them get on what is now an impossible housing ladder.

This so called Dementia Tax is the latest stitch up from the Tories who promised so much in the past but are now going to reap the benefits from what you worked hard for by pocketing your nest egg for themselves.”

Further Comment @ NLAT:”

Comment @ NLAT:  Threads like this are certainly putting a spring in my step. Thought I was a lone voice in the wilderness, 101% anti the cheating Tory’s. Now, I’m seeing dozens and dozens of folks sharing my views of the corruption of the spivs. Can’t wait for June the 8 and 9th for the biggest political upset in many years.

Comment @ NLAT:  She’s weak and unstable not strong and stable – bring it on you have shown your true colours !!!!

Comment @ NLAT: Perfect name “MAY”…. She might she might not…. But you can bet she blooming will once in power.

Comment @ NLAT: Apparently she says it’s not a u turn, So what is it Theresa an alternate bend. Yeah yeah we know.#votelabour

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