The Government's tightening of restrictions on rest home subsidies will cause resentment among the elderly, a lobby group says.
"And it will bring a lot of unfairness back into it," Grey Power president Roy Reid said yesterday.
In a little-signalled move, the Government is switching to inflation-indexing of the maximum assets people can own and receive taxpayer subsidies for aged residential care.
The previous Labour administration dramatically increased the limit in 2005, and began $10,000 annual increases that were to continue until 2025/26.
This year's limits are $210,000 for a single person or couple in care. Couples with one partner in care can opt to choose a limit of $115,000, excluding the value of a house and car.