Meeting the cost of care
A number of options available to finance your care
This guide to funding options illustrates ways in which
home care services are often financed and would ultimately depend on the level of support required.
PRIVATE FUNDING
The cost of care could be less than you think, especially if only requiring a little amount of help each week, and the costs can often be met out of normal income, pensions and allowances.
If you require more comprehensive personal care services, which cannot be met by the local authority, thought must be given as to how this funding is achieved.
Please refer to the allowances which might be claimed – at the end of this section.
For many people their main asset is usually the family home, and with the receipt of pensions and benefits it is often the case that
you can continue in your own home receiving home care services instead of an alternative residential care option. Because
you wish to continue living at home you may also have to consider alternative funding options, such as equity release and annuity based schemes.
Many different financing schemes are available to fund your
care and nursing; each scheme needs to be tailored to your
specific financial circumstances and you should take proper
independent advice.
Inheritance tax planning can reduce the overall cost of care
and nursing by 40% if your home and other assets are worth more
than £325,000 (IHT Nil rate band tax year 2009-2010).
For such individuals, the net cost of care & nursing is 60%
of the total fee; this is because the cost of the care service
reduces the value of the estate and related inheritance taxes
accordingly.
Your children and future beneficiaries of your estate should be
included in any discussions and legal arrangements on care
funding.
We are not qualified to give advice about which funding option
might be most suitable for your needs. You should seek independent
financial advice.
PUBLIC FUNDING
The Government and local authorities provide financial
assistance, advice and other forms of support to elderly, sick and
disabled people who need help with their personal care or nursing.
Assistance may vary between different areas of the UK.
Social Services Support and 'Direct Payments'
Your local Social Services can arrange and may pay for, or
contribute towards, the cost of your care but not any nursing you
may need.
If you want them to pay for your care they will means-test you.
They will ask about your weekly income including pensions,
earnings and benefits and about your savings and investments. The
value of your home or car is not considered and they will
generally ignore any savings or investments you may have if they
are less than about £22,250 (the figures vary from area to area).
East Sussex County Council's website says "If you have savings of over £23,000 you will have to pay the full cost of the care you receive. This charge begins from the date your care begins.
You may not have to pay anything if you have savings or capital below £22,250 and have income (other than earnings from any work that you do) of less than:
• £162.50 a week if you are over 60
• £114.75 a week if you are aged between 25 and 60, or
• £98.06 a week if you are aged between 18 and 24.
Once you have been assessed to have less than £23,000 we may offer you help towards your cost of home
care".
The Council will then work out how much you may need to pay
towards the cost of providing you with care.
If you are entitled to local authority financial support, as an
alternative to actually providing you with care, councils are now
obliged (if you meet certain conditions) to offer you Direct
Payments. With this regular cash income you can opt to pay for
private homecare and related activities such as shopping services.
If you are a volunteer Carer (e.g. a relative or neighbour) you
may also be able to get Direct Payments.
You cannot use Direct Payments to pay for permanent places in
residential or nursing homes or to buy care from the council.
Social services can also suggest special equipment to make your
life easier, e.g., grab rails and bathroom aids.
Grants for adapting housing may be available from local
Community Occupational Therapists (details available through your
GP).
For more information about getting help from the Social
Services contact the care managers via your local county council
office or equivalent authority.
NHS Continuing Care
Your every nursing and care need is entitled to be paid for 'in
any setting' - including in your own home - if, following a short
clinical assessment, your local health authority agrees your
health needs meet their criteria for funding.
The value of Continuing Care may exceed £1,000 per week. You
do not receive the cash, the NHS spends it on your behalf in
accordance with the needs and aims stated within a Care Needs
Assessment.
The health authority (Primary Care Trusts in England, Health
Boards in Scotland and Wales) are obliged to take the wishes of
the client into account. If you want, for example, to have a
live-in nurse provide you with the care you need at home you
should make this clear as early as possible during the care needs
review.
If your partner is your main Carer, he or she may need a break
now and then. Continuing Care funding may help to pay for
professional respite services, e.g. a visiting nurse for an
afternoon or sometimes a live-in nurse for a week.
Continuing Care funding criteria may vary from area to area,
but to be eligible you must usually suffer from a serious
life-limiting or terminal condition.
There are several kinds of 'Continuing Care'. You may be
eligible for help under more than one. For example, your health
authority and local council may use different schemes to jointly
co-ordinate and fund one package of care that meets both your
health and social care needs.
To find out more about Continuing Care phone NHS Direct (0845)
46 47.
Attendance Allowance
Attendance Allowance is a tax free benefit for people over 65
who need help with personal care such as getting in and out of
bed, washing, eating, medication or mobility, or because they can
become confused and need to be watched over. Attendance Allowance
is not affected by savings and is usually unaffected by any other
income you may have.
Telephone your Local Benefits Office or (0845) 712 3456; see
leaflets DS702 and HB5 available from Jobcentres, Pension Centres
and Social Security offices.
Carer's Allowance
Carer's Allowance is a taxable benefit for people such as
friends and family members who look after someone who gets
Attendance Allowance or Disability Living Allowance. Extra
expenses can be claimed for paying a third party to provide care
while you are out.
Telephone your Local Benefits Office or (0800) 882200; See
leaflets DS700 available from Jobcentres, Pension Centres and
Social Security offices.
Disability Living Allowance
Disability Living Allowance is a tax-free benefit for children
and adults with a disability or illness who need help with getting
around or personal care and who claim before the age of 65.
Phone your local Benefits Office or (0845) 712 3456.
See leaflets DS704 (or DS706 for children) and HB5 available
from Jobcentres, Pension Centres and Social Security offices.
Independent Living Fund
The top-up fund that works in conjunction with Social Services.
The Independent Living Fund (ILF) pays grants to disabled people
with high support needs who wish to live independently. ILF
disregards your earnings and that of your partner so you can earn
without losing any funding.
Phone (0845) 601 8815.
Helplines
Senior Line (0808) 800 6565.
A welfare advice line run by Help the Aged for older people and
their carers. Free, confidential and impartial advice about
benefits and community care.
Benefits Enquiry Line (0800) 882200.
A confidential telephone service for people with disabilities,
their representatives and carers.
Benefits Website - DirectGov http://www.directgov.gov.uk/en/MoneyTaxAndBenefits/index.htm |
