Meeting the Cost of Care

Yet, the fact remains that many people do not get proper advice when faced with one of the largest financial commitments they may have to make – paying for care or nursing home fees. It can be a minefield trying to negate funding for elderly care, whether you are being funded by the State or paying privately.  You need to ensure you are getting what you are rightfully entitled to from your local authority, the National Health Service or from any social security benefits.  These days there are also specific financial products that can underwrite to help meet a shortfall in income and therefore help cover the cost of care.    It can be considered important to try and retain independence and equity to ensure an elderly relative does not feel they have been stripped of everything in their old age.

Assessing what funding is available is a complex area, and it is strongly advised that you seek some professional advice.

The usual place to start is with a Care Assessment, and everyone is entitled to a Care Assessment by his or her local authority.  This establishes care needs and measures the financial resources of the elderly person concerned.  It is a useful starting point for all considering care, even if the local authority is not likely to be funding the care.   Even if the local authority is funding the care, you still have the right to choose a care home, and if this costs more than the local authority funding contribution, you can top up the fees. Anyone who qualifies for funding from their local authority, will still receive funding even if they select a care home in another authority (to be nearer to family for example).

Selecting the right care or nursing home is vital.  Do your homework, and make visits to those you short-list.  Bear in mind the long-term care options, as you may not want to face moving an elderly relative if his or her care needs change.

Qualifying for Local Authority Assistance
If the Care Assessment qualifies you as needing care, and the capital held is below the upper capital limit (£23,250), you should receive financial assistance from your local authority.  If your capital is below the lower capital limit (£14,250), you will be entitled to full financial support.  If you have capital between these limits, then you will also pay a capital tariff of £1 per week for each £250 or part thereof between these two figures.

If your capital reduces once you have been assessed, you can re-apply for another assessment, and the local authority contribution may be revised.  You should seek to do this well below your capital funds fall below the threshold to ensure continuity of care.

If a property is joint-owned, 50% of any private pension and 50% of joint savings, will be taken into account.  It can therefore be advisable to have separate single savings accounts to pay for care needs.

The NHFA have a care advice line on 0800 822 3403 where you can speak to local Care Fees Advisers that can assist you.

Financial Help that is not means tested
If you funding your own care, the Attendance Allowance is a non-means tested, non-taxable allowance paid at the lower rate of £47.80 per week for those needing care by day or night and, at a higher rate of £71.40 per week for those needing care by day and night. Dependent on whether your stay is temporary or permanent, if you receive nursing care in a care home you may be entitled to an NHS Registered Nursing Care Contribution (RNCC) towards the cost of your nursing care. If you qualify an amount of £108.70 per week is paid by the NHS direct to the nursing home as a contribution towards the weekly fees. If your needs are primarily health care needs, then you may be entitled to full funding from your local Primary Care Trust (PCT) following an assessment under their continuing care eligibility criteria.