Hackney Council Scraps Social Care Cap, Bills Set to Triple for Some

Hackney Council has removed its £250 weekly cap on charges for at-home social care. The policy change, which takes effect on September 7, is expected to recover around £150,000 each year for the local authority. This decision follows a public consultation where 66 per cent of adult social care users expressed opposition to the proposed changes, citing concerns about affordability on low incomes and welfare dependency.

Impact on Residents

For some self-funding disabled residents, the removal of the cap will lead to a significant increase in their care bills. One individual, who wished to remain anonymous, is facing a projected tripling of their monthly care costs, from £1,000 to approximately £3,000. This means many will need to find an additional £2,000 per month or deplete savings below the £23,250 threshold for statutory social care support.

The council's cabinet approved wider reforms to its care charging policy in December 2025. However, a finalised Equalities Impact Assessment was omitted from these approvals, with officers instead submitting a draft document that did not detail how equality findings influenced the final decision. The council stated that a completed EIA review is available upon request.

Rationale and Financial Context

Hackney Council justified lifting the cap by stating it was a fairer approach and aligned the borough with government minimums and practices in other London boroughs. The decision comes as the council faces increased demand for social care, which has risen by 40 per cent since 2020. The borough anticipates spending £123 million on adult social care in the 2026/27 financial year, representing about 16 per cent of its total budget. Wider reforms to care charging are expected to generate £416,000 annually.

When the cap was first proposed in May 2025, the council indicated that budget cuts were necessary due to a multi-million pound overspend. At that time, it was suggested that only the wealthiest 40 per cent of residents would be affected, while the remaining 60 per cent would continue to pay nothing. However, the council's own data indicated that approximately 34 per cent of users with held financial records paid a nil charge, and the basis for the 60 per cent figure among the total user population remains unclear.

Comparison with Other Boroughs

While Hackney Council stated its changes would bring it in line with other local authorities, comparisons show variations. Tower Hamlets abolished non-residential homecare charges entirely from April 2025, providing universal support regardless of income. Hammersmith and Fulham also offer free at-home care for eligible residents. Newham Council removed its £400 weekly cap in 2024.

Hackney Council maintains that its assessment criteria, based on a resident's ability to pay under national guidance, remain unchanged. However, the council now measures 100 per cent of residents' assessable income, an increase from 75 per cent, and bills 100 per cent of service costs to care users, up from 92 per cent. Proposals to reduce the disregard of disability benefits in income calculations were dropped following objections during the consultation.

Consultation and Advice

The public consultation received criticism from a majority of adult social care users. Many respondents highlighted their low incomes and reliance on welfare, stating they could not afford increased care costs. Case studies presented by the council showed potential increases, such as an 85-year-old woman seeing her weekly costs rise by up to 25 per cent to £429. Age UK has advised affected older residents to seek independent advice regarding benefits, grants, and financial support they may be entitled to.

Hackney has historically experienced high levels of pensioner poverty. Age UK did not confirm its participation in the consultation, and Choice in Hackney, a Deaf and Disabled People's Organisation, was reportedly not consulted and its CEO was unaware of the cap's removal. Only two unnamed community groups responded to the consultation.

Next Steps

The changes to social care charging are now in effect from September 7. Residents facing increased costs are advised by Age UK to seek independent financial advice to ensure they are claiming all eligible benefits and support.