Paying for care can be a worry for many elderly people and their families, particularly if moving into a care home. At some point most of us can expect to need some assistance with our daily care. In this guide we explain the financial assistance available and the different steps to accessing it.
You first step in understanding care requirements and funding options is to complete a Care Needs Assessment, which will identify the level of care that you need.
You can request a Care Needs Assessment from your Local Authority Adult Social Care Team. Your local GP or community nurse can help with this if required. If you sit between areas then it is up to the Local Authorities involved to designate your correct area and, to pay for care if needed, until this is resolved.
The assessment will take place face-to-face or over the phone. Sometime you may be required to self-assess or have a combined assessment if you have a dedicated carer. Extra support is available from the Authority if you think you may find it difficult to communicate your needs during the assessment.
During the assessment you will be asked questions about your health, your daily activities and things you may find difficult, as well as your emotional wellbeing.
You want to be sure that you don’t miss anything, so try to prepare for the assessment by keeping a diary of your needs and daily activities that you may find difficult. Ensure you have a list of medication that you take and also any medical conditions/health care needs.
If the assessment finds that you;
OR
OR
The Care Plan you receive will detail your needs and the support you require in order the meet them, as well as an action plan for putting things in place. Once you have completed your Means Test, it will also list out any financial or funding details.
Once the Care Needs Assessment results are finalised a Means Test will be carried out, which looks at both capital (e.g. savings, ISAs, stocks and shares, investment properties) and income (e.g. pension and Income Support)* and will calculate if you are eligible for funding towards the cost of your care.
The Means Test will include your “Personal Budget”, which is the end figure calculated as being sufficient to cover the costs of a suitable care home for you. Within these calculations will be the figures for any contributions you may be expected to make, dependent on your finances. It is the responsibility of the Local Authority to ensure that you are not left with less than £24.90 a week as a Personal Expenses Allowance (PEA), though they do have the discretion to increase this amount, depending on individual circumstances.
You can challenge the decision of your Means Test with your Local Authority if you believe it is incorrect.
Local Authority Funding
If you have assets (savings) of less than £23,250 (not including capital tied up within a person’s home) then you could be eligible for financial assistance from the Local Authority. This could include some or all of the cost of the care. The level of contributions are calculated from your income and savings levels.
Your total capital (savings) impacts the level of Local Authority funding available for your elderly care.
Your capital (savings) |
|
Over £23,250 | You will not be eligible for financial assistance from the Local Authority and will be “self-funding” |
Between £14,250 and £23,250 | You will make a contribution based on your final calculation of income and capital (based on £1 income per £250 capital) |
Less than £14,250 | Your capital (savings) will be ignored when calculating your financial contribution to your care, though you may still need to make contributions based on your income. |
*Some income is exempt from being included e.g. some disability benefits
If you are eligible for funding you can arrange the care yourself rather than go through the Local Authority. You will need to ensure that you engage care support appropriate for your needs and within the Personal Budget allocated. You will then need to arrange payments to your care provider through your Local Authority.
NHS Continuing Health Care
If you have complex medical needs and are eligible, then your care will be paid for under the NHS CSC arrangement (Continuing Health Care). This covers the cost of any care home placement, essentially making it free. It is the responsibility of the Local Authority to refer you for this care to the NHS if they identify that you are eligible through the Care Needs Assessment process. Depending on where you live, the level of CHC may be impacted by your Personal Budget.
Given that this enables the elderly person to receive free care, it is certainly worth applying to see if you qualify. If the individual’s health care needs increase then it is worth revisiting this funding route.
NHS-funded nursing care
Even if you are not eligible for CHC, you could still receive a contribution towards your care from the NHS through the NHS Funded Nursing Care (FNC) if you have nursing needs and need to move into a registered nursing home.
In this instance, any payments will be made directly to the nursing home. There is no means testing requirement for this funding so, if you are eligible, then you should receive it.
If your total assets are over £23,250* then you will not be eligible for support from the Local Authority. However, there are options for paying for your care.
Deferred Payment Scheme
Here, your local council will pay towards the cost of care –up to a certain amount –for life.
This is where a loan is secured against your home at a fixed interest rate. You’ll have to sign a legal agreement with the local council agreeing to repay the amount owed, any added interests, and any annual administration charges once the home is sold upon death. Using a Deferred Payment scheme is only possible if you meet the following criteria:
You might want to consider renting out your home. The income can be used to pay for your care, thus reducing the local authority’s bill.
You can read more about deferred payment schemes here.
Care Insurance
Increasingly in the UK, we are seeing insurers start to offer long term care insurance.
Long term care insurance is useful as it provides the money you need if you have to fund care for either yourself or a loved one. Long term care insurance will typically cover the cost of assistance for those who need help to perform the basic activities of daily life such as getting out of bed, dressing, washing and going to the toilet.
In addition, this type of care insurance allows you to protect yourself against diseases such as dementia and Parkinsons. If someone does get these, the insurance will cover the costs of care.
Renting Your Property or Releasing Equity
If you have a property then you could consider renting it out to pay for the cost of your care, meaning that you will keep the equity within your property. Alternatively you have the option of releasing equity from the property. In any case, you should seek professional financial advice.
Using Savings, Pensions or Investments
A lot of elderly people rely on using their existing savings, investments or pension income to pay for their care. You should seek specialist financial advice to decide which is the most financially-efficient means for you and your family.
Immediate Needs Care Annuity
This provides a tax-free income for you when paid directly to the care provider. It is a type of insurance policy that uses an upfront lump sum investment in exchange for an income for life to pay for care. The cost of the upfront premium is calculated using your age, level of income required, life expectancy and current rates. You should always seek specialist financial advice as annuity rates can vary considerably.
In all instances of self-funded care options, you should seek the advice of a professional financial representative.
Lancashire County Council Adult Social Care
https://www.lancashire.gov.uk/health-and-social-care/adult-social-care/
Lancashire County Council Care Needs Assessment
Lancashire County Council: Home Services
https://housingcare.org/service/provider-9900-lancashire-county-council
Community Mental Health Team (Adult) for Lancashire & South Cumbria
https://www.lscft.nhs.uk/cmht-adult
Morecambe Continuing Health Care
https://www.morecambebayccg.nhs.uk/your-health/continuing-healthcare
Cumbria Continuing Health Care
https://northcumbriaccg.nhs.uk/your-health/continuing-healthcare
*Rates in Scotland, Wales and Northern Ireland vary.