Paying for Care
What the state will normally provide What the NHS will normally provide Where can I get more advice? Will the local authority pay for care in my own home? Benefits which may help Long term care insurance
What the state will normally provide
There was a time when we thought the state would look after us 'from cradle to grave'. These days, the state still provides 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.
Briefly, there are three bands of support:
Your local authority may pay for the cost of your residential or nursing home care if your capital is less than:
England - £12,250
Scotland - £11,750
Wales - £13,500
Your local authority will still pay for your accommodation and personal care, but not fully, if your capital is between:
England - £12,250 and £20,000
Wales - £13,500 and £20,500
Scotland - £11,750 and £19,000
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:
England - £20,000
Wales - £20,500
Scotland - £19,000
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.
If you want a more expensive home than the authority is willing to pay for, you are allowed to arrange a 'third party contribution' from another source.
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 £18.10 (£20 in Wales) a week spending money.
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 a registered nurse.
Scotland
The Scottish Executive has introduced a flat rate contribution of £145 per week for personal care, plus £65 per week for those assessed as needing nursing care.
Wales
The Welsh National Assembly has introduced a flat rate contribution of £105 per week towards nursing care.
Where can I get 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:
· Charities such as Age Concern (0808 808 6060)
· Help the Aged (0800 800 6565)
· Counsel and Care (0845 300 7585)
· Your local Social Services department
· The Benefits Agency (0800 88 22 00)
· The Nursing Homes Fees Agency (0800 99 88 33)
· Independent financial advisers (ring 0117 971 1177 for the names of local IFAs)
· Insurers who specialist in care fees planning
Will the local authority pay for care in my own home?
There is no simple answer. For care in a person's own home, each local authority makes its own decisions about charges. Some authorities do offer free services, but will assess your income and will charge you if your income is above a certain level.
Benefits which may help
Many people are hesitant about applying for benefits, but if you want to remain in your own home, they can be extremely useful to you and your carers. For example, Attendance Allowance does not depend on your savings or income, and could enable you to contribute to the petrol costs of a neighbour who does your shopping, or pay for a home help to do the tasks you can no longer manage. There are also benefits for people under 65, and for carers. For example, Invalid Care Allowance is for people unable to work because they are caring for someone.
Everyone's situation is different, and you should get advice. Try Age Concern (0808 808 6060), Help the Aged (0800 800 6565) or the Benefits Agency (0800 882 200, or in your local phone book).
Long term care insurance
Many people find that insuring for possible future care needs makes sense for them. If you use your savings to pay for your care you run the risk of using up your capital leaving very little for yourself, or for your family when you die.
There are two types of long term care insurance:
Long term care insurance - for future long term care needs
This is paid for by you over a period of time, so that it will pay for your care when you need it. Insurance schemes usually pay out when you are unable to manage the "activities of daily living", or are diagnosed as suffering a mental impairment. This type of insurance is no longer widely available.
Immediate care insurance - for immediate long term care needs
Most insurers offer a scheme for those who need immediate care. Normally you would pay a single premium, with the amount based on how long the insurance company thinks you'll need care.
Long term care costs are not cheap, and insurance can represent a significant expense, especially in one payment. However, set against the cost of buying care directly and as protection against unexpected or longer than expected costs, you might consider it worthwhile. Long term care insurance is complex and it is a good idea to speak to an independent financial adviser who specialises in long term care planning.
Please note that this is information is correct at the time of writing, but is subject to change.