Overview of Elderly Care Fees
Care fees and funding is a very complex and confusing area. You and your parent may have concerns about money running out, burdening the family and loss of dignity.
What is the State’s obligation to the Elderly?
Where care needs are social (i.e. one focused on providing assistance with activities of daily living) and the persons assets are below £23,250, then following an assessment of your care needs, your Local Authority will determine which one of categories our parent may fall into in terms of care
- Home based care with support in the home
- Intermediate care transitional care designed to help people stay/remain independent -this is only temporary
- A place in a residential care home
The higher the need, the greater the assistance by the Local Authority.
Do be mindful, however, that income from the State Pension and the Pension Credit will be taken into account ( except the Personal Expenses Allowance, which stands at £23.50 per week) 2011-12
If your ageing parent’s capital pushes them outside of the means test threshold, then you/your parent will be responsible for meeting the cost of their 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
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 for Attendance Allowance is £77.45 per week 2012-13. 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 Attendance Allowance 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 needs (i.e. related to the treatment, control or prevention of a disease, illness, injury or disability)
What is Registered Nursing Care Contribution?
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
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Grace Consulting provides affordable fee-based independent advice to help you choose the best care option to suit you and your relative’s needs and wishes. Our Care Advisers provide the knowledge and support you need to make the right decision for you and your family. myageingparent.com is partnering with Grace Consulting, the UK’s leading provider of personalised independent care advice, who, for over 40 years, has specialised in finding the best possible care for older people. Please note this is not an Age Concern or Age UK service.
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Emma Mitcham is a Solicitor in the Community Care Department, specialising in all aspects of community care law, including adult social care, mental health, healthcare, care funding and challenges against the NHS and Local Authorities.
