The threshold for government assistance with care fees in England has remained at £23,250 for 15 years, a period during which inflation would have raised it to over £35,600. This stagnation is effectively a "stealth tax" on families, costing them an additional £12,400, a report by the King's Fund has found.

This situation affects approximately 220,000 individuals in England who self-fund their social care, a cost that can run into tens of thousands of pounds annually. The King's Fund also highlights that these self-funders often pay higher fees than those whose care is funded by local authorities, as they subsidize the lower rates paid by councils. A 2017 Competition and Markets Authority report indicated a 41% difference in rates, a gap that the King's Fund suggests has likely persisted.

Simon Bottery, a senior fellow for social care at the King's Fund, stated that the frozen thresholds are a symptom of an unfair system resulting from decades of delayed reform. He welcomed Prime Minister Andy Burnham's stated intention to address these issues, noting a renewed drive for reform that has placed the matter high on the political agenda.

Burnham has previously acknowledged the failures of past governments in managing the care system and has committed to finding political consensus and public support for future delivery and funding models. While he has explored options such as a "death tax" on estates, he has also indicated a willingness to negotiate with other parties and has not ruled out tax increases or "difficult decisions."

Prime Minister Burnham has asked Baroness Louise Casey to expedite her review of how to deliver and fund a "National Care Service" to run in parallel with the NHS, with publication anticipated for the summer of 2027.

Currently, individuals in England requiring care home placement must deplete their assets to £23,250 before qualifying for state assistance. This often necessitates selling their homes. For care provided at home, asset levels are set by local councils but cannot fall below £23,250, though the value of the home is excluded from this calculation. The rules for asset thresholds differ in Scotland, Wales, and Northern Ireland.

While the NHS can fund care based on health needs through "NHS continuing healthcare," the application process is noted for its complexity and "red tape." Homeowners are exempt from selling their property if certain relatives, such as a spouse or those under 18 or over 60, continue to reside there.