The long-awaited £86,000 cap on care costs, once a beacon of hope for families seeking certainty, has been scrapped. Once again, we find ourselves back at square one.

For financial advisers, this policy vacuum presents both a challenge and an opportunity.

The public continues to be confused, and looking for guidance

Our research shows that:

• 53% of over-45s are confused by government announcements on care funding
• 47% say they will delay making financial plans until reforms are introduced, and
• 63% don’t know how the scrapping of the care cap will affect their own plans.

This uncertainty is causing confusion and stopping people from taking control. Yet it’s also a moment for advisers to step in and provide clarity, structure, and reassurance.

The cost of care is misunderstood

Nearly half of care home residents are fully self-funded, yet 60% of over-45s underestimate the cost of a year in residential care by at least £10,000. Many assume the state will step in, only to discover too late that the system is means-tested and support is limited.

Advisers can play a crucial role in helping clients understand the true cost of care and explore funding options, including immediate needs annuities, equity release, or structured drawdown strategies.

Property wealth elephant in the room

The idea of selling a home to pay for care remains politically toxic, yet property wealth is likely to be part of the solution. With nearly £3 trillion in housing wealth held by retirees, advisers are in a unique position to help clients navigate this sensitive topic, balancing emotional considerations with financial pragmatism.

Planning conversations are rare, but powerful

Only 6% of over-45s have made specific financial provision for care. However, among those who’ve worked with a financial adviser, 63% have discussed care planning, more than double the national average.

This is a powerful reminder: when advisers lead the conversation, clients engage.

Client-centricity across generations

Focusing on care advice, shows a commitment to putting clients first, even when it doesn’t bring in ongoing fees. It also supports Consumer Duty and your role in helping clients in vulnerable circumstances. Care decisions often involve not just the individual, but their children and extended family, making it a uniquely multi-generational planning opportunity.

By guiding families through emotionally and financially complex care scenarios, advisers can further build trust across generations, strengthen client relationships, and position themselves as indispensable partners in long-term financial wellbeing. In a world where value is increasingly measured by impact, not just income, care advice is a powerful differentiator.

Final thought

The social care system may be stuck in a policy “Groundhog Day,” but advisers don’t have to be. By proactively raising the topic of care, demystifying the funding landscape, and offering tailored solutions, together we can help clients take control of their future, and build deeper, more valuable relationships in the process.

Visit our Care funding overview page to access tools, training, and support for care advice.

Download 2024 Social Care Report to see all the findings.