Care Fees – An OverviewPrintPdfClose »

08/03/2012

Care fees and funding is a complex and confusing area underlined by concern that your money will run out, you will become a burden on your family and, in turn, lose your dignity. In this article, I will attempt to provide some clarity on this issue.

So does the State have an obligation to financially assist you when care is needed? Generally, yes. Where your care needs are social (i.e. one focused on providing assistance with activities of daily living) and your assets are below £23,250, then following an assessment of your care needs, your Local Authority will determine which one of four categories you fall into. The higher your need, the greater the assistance by them. Devon County Council currently funds £391 where needs are substantial. Do be mindful, however, that income from the State Pension and the Pension Credit will be taken into account save for the Personal Expenses Allowance, which stands at £22.60 per week.

If your capital pushes you outside of the means test threshold then you will be responsible for meeting the cost of your care. Good wealth management can help you find ways in which pensions, investments and savings can be utilised effectively to create income to fund care both now and in the future, but this is outside the remit of this article. Do consult with a Financial Planner with the CF8 qualification to shed further light on this matter.

In cases where an individual is a “self-funder”, due consideration should be given to Welfare Benefits. Indeed, whilst most are means tested, Attendance Allowance is not. This benefit is for the over 65s who need help with activities of daily living (e.g. washing, feeding) and is paid at two rates. Currently, the higher rate is £73.60 per week. Whilst this barely makes an indentation into average residential care costs of £550 per week, every little counts and, of course, it goes some way to preserving inheritances for future generations. Do please note that public policy dictates that this benefit is not payable when an individual is in hospital or is Local Authority assisted.

Of course, self-funding and Local Authority financial assistance may be irrelevant if an individual has health need (i.e. one related to the treatment, control or prevention of a disease, illness, injury or disability). Where care is derived in a nursing home setting, then there may be eligibility for Registered Nursing Care Contribution (hereafter RNCC) paid at £108.60 per week. Do ensure that this is factored into a Care Home contract if you qualify for this.

Before considering RNCC, there must first be an assessment for Continuing Healthcare funding (CHC). In circumstances where an individual medical condition is unpredictable, intense and complex, then eligibility for CHC may follow. Here, your local Primary Care Trust (PCT) effectively picks up the tab of care fees (some subject to a cap). This can impact hugely on how much is left in your Estate.

Sadly, opportunities to assess for CHC eligibility are often missed on hospital discharge into a care home, for example. This means that there are many cases where CHC funding would have been awarded if looked at in the first instance. Be mindful that Social Workers should continue to review an individual who has come onto their radar annually. Despite this principle having statutory underpinnings, it often does not happen in practice and a new care home resident’s social services file is closed accordingly.

If you are or know someone where long term care needs are current or imminent, then please contact us today to and let us guide you through the care fees minefield.