Financial Planning for Care
Paying for care is a complex subject, and everyone's situation is different. Your capital determines the level of support you can gain from your Local Authority.
What the local authorities will normally provide
There was a time when we would be looked after 'from cradle to grave'. These days, local authorities still provide a level of care for the least well off. But if the state thinks you can afford to pay, you will have to pay at least some of the costs of accommodation and personal costs in a residential nursing home:
England
Your local authority may pay for the cost of your residential or nursing home care if your capital is less than £14,000.
Your local authority will still pay for your accommodation and personal care, but not fully, if your capital is between £13,500 and £22,250. For every £250 you have over the lower amount, they will subtract £1 per week from the money they contribute.
You will have to pay the full costs of your accommodation and personal care if your capital is over £23,000. If your capital falls below the upper amount while you are in a care home, you will become eligible for help from the local authority.
In England the NHS contributes to the costs of nursing care for everyone who is assessed as needing it, whether it is you or the local authority paying for your care.This is the 'registered nursing care contribution' or RNCC. This funding is not paid directly to you.The NHS will pay it to the care home either directly or via the local authority. The normal amount you will receive is £103.80 per week. The rest of the costs, for accommodation and personal care, will still have to be met by you or the local authority.
If you are moving into a care home because you need nursing care for an ongoing medical condition, you should check whether you might be eligible for fully funded NHS continuing care.
Your home would be included in your assets only if you live alone, or you are both moving into a care home. In addition, the local authority will disregard the value of your home for 12 weeks after your admission to permanent nursing or residential care.
You will be expected to use all your income - including your pension, benefits, and so on - to fund your care. However, you can keep £21.90 in England and Scotland a week personal allowance.
What the NHS will normally provide
Even if you are paying all your own fees, the NHS now makes a contribution to your nursing costs. Nursing care is defined as the care you are assessed as needing from aregistered nurse.
Insurance policies to pay for care
Immediate care insurance may be suitable if you are currently considering moving into a care home. It involves paying a single sum at the time you decide you need care.
The cost is based on how long the insurer thinks you'll need care for, and the level of care you need. While the cost can seem a large amount, it should provide a fixed payment for as long as you need care, and can protect the rest of your assets.The payments are tax-free, are generally made directly to a care home and are portable if you decide to move to a different home. Long-term care insurance, where you pay premiums over a lengthy period before you actually need care, is no longer widely available. If you have already taken out one of these policies it should still be honored. All policies are slightly different. We suggest you speak to an independent financial adviser who specialises in care fees planning. Among the questions to ask are:
What are the benefits and for how long will I receive them?
What is the maximum amount the insurer will pay out per month?
Should I take out capital protection so that the balance of any lump sum is returned to my estate?
Are the benefits paid to me so that I can arrange my own care, or paid direct to the care home?
Are the benefits protected against inflation?
Need More advice?
Paying for care is a complex subject, and everyone's situation is different. You should seek advice about your own case.
Among the organisations offering specialist advice are:
Age Concern - www.ageconcern.co.uk, or tel: 0808 808 6060
Help the Aged - www.helptheaged.org.uk, or tel: 0808 800 6565
Counsel and Care - www.counselandcare.org.uk, or tel: 0845 300 7585
Benefits Agency - www.direct.gov.uk, or tel: 0800 88 22 00
Nursing Homes Fees Agency - www.nhfa.co.uk, or tel: 0800 99 88 33
