Taxation: Care Homes Natascha Engel To ask the Chancellor of the Exchequer if he will take steps to enable the cost of residency in a care home to be set against the tax liability of the payer; and if he will make a statement. Jane Kennedy Since the introduction of the National Assistance Act 1948 people have had to contribute towards the cost of their residential care. The Department of Health is committed to providing affordable care for all who need it, but those who can afford to are asked to pay.