Hackney Council has scrapped a cap on social care bills despite widespread objections. The decision is likely to mean wealthier residents in the borough face increased charges for their home care.
Cabinet members at the east London local authority have, following a consultation, approved the removal of a £250 weekly ceiling on the charges residents face for home care. Defending the decision to abolish what they described as a "generous" cap, councillors said the move was fairer and brings the borough into alignment with other local authorities that also offer the statutory minimum support set by the UK Government.
Council defends move amid budget shortfall
In a statement responding to the consultation, Hackney Council said: "While the cabinet acknowledged the impact that higher contributions could have on individual residents, they ultimately decided to proceed with the remaining proposals to address a significant budget shortfall and rising demand."
The council said 60 per cent of those receiving social care would be unaffected by the move and would "continue to pay nothing". But it has conceded that some residents' care costs could spike by 25% as a result of the cap being lifted. The new policy came into effect on September 7, with updated bills expected to land in November.
National context and local impact
The update is timely, coming after Prime Minister Andy Burnham, speaking at Labour's party conference in Liverpool on Tuesday, vowed to fix social care by setting up a new NHS-style model of care in England. Mr Burnham said the new care system would be "fully funded – and not through borrowing" where "everyone contributes and everyone is covered." Economists have argued that Londoners are likely to be taxed more to pay for Mr Burnham's social care shake-up.
Under the current system, set out in the Care Act 2014, people with savings, investments or capital exceeding £23,250 are generally expected to fund their own care. However, Hackney Council had a policy of capping the maximum weekly charge at £250 for non-residential adult social care, meaning that many residents with income or savings beyond £23,250 continued receiving financial support.
Financial recovery and consultation response
Lifting the cap is estimated to recover roughly £150,000 per year for the council, which has seen social care demand leap by 40 per cent since 2020. The borough is forecast to spend a net £123 million on adult social care in the 2026/27 financial year – roughly 16 per cent of the total council budget. Wider reforms to its care charging policy are expected to claw back £416,000 a year.
The changes were first put forward 16 months ago when Labour ran the council. The changes have now been agreed by the Green Party administration, which took over running the council after the May local elections. The majority of responses to last year's public consultation were critical of the social care charging reforms. More than two-thirds of responses came from social care users.
Those with savings or income above the £23,250 statutory threshold argued it was unjust for the council to seek extra money for care that was already costly, particularly for disabled individuals. The council's own consultation included case studies of how the changes would impact certain residents. It said an 85-year-old bed-bound woman receiving at-home care would see her costs jump by up to 25 per cent to £429 per week if the cap was lifted.
Council assurances and advice for residents
A spokesman for Hackney Council said: "Despite the huge pressures all councils face in funding social care, in Hackney we are clear that those on the lowest incomes do not have to pay for their care, while those who are asked to contribute only do so based on a fair and transparent affordability assessment. The changes to our care charging policy have been made carefully and transparently, and bring Hackney in line with other local authorities and national guidance."
The local authority said assessments will be carried out to determine whether individual financial contributions need to change. "No new charges will start without us contacting a resident first," it added. Age UK has advised older residents who may be affected to seek independent advice about other financial support they may be entitled to. A charity spokesman said: "Many people in Hackney are entitled to benefits, grants and other forms of financial support that they are not currently claiming, including disability-related benefits, attendance allowance and pension credit."
