Members of the House of Lords have rejected the Government’s planned change to the cap on social care costs.

The House rejected the amendment yesterday evening.

The proposed change to the social care cap will now return to the House of Commons for further debate.

The Government said in November that any care that has been funded through the means tested system would not count towards its cap on social care costs.

The Government is looking to introduce a cap on social care costs at £86,000.

Shaun Moore, tax and Financial Planning expert at Quilter, said: “Research from the IFS and the Health Foundation has shown that the change in policy would disproportionately affect those with more modest levels of assets and wealth, including those living in the North East, Yorkshire and the Midlands.

“This change to the care cap had to be legislated for with an amendment to the Care Act 2014, which the government is doing through Clause 155 to the Health and Care Bill, which was defeated in the Lords last night.

“However, this rebellion will likely be short-lived. Once the Health and Care Bill goes back to the Commons, it is very likely MPs will seek to overturn this decision, though some MPs will put up a fight. There is a relatively large population of Conservative MPs against the cap on social care costs, which meant the vote only just went through in November 2021, so the government’s whipping operation will be in full force to get it through again.”

When the Government first introduced its plans for a social care cap in Autumn, several retirement providers said it could lead to a growth in clients looking to Financial Planners for help with later life and intergenerational wealth planning.