Who qualifies for local authority assistance/help?
If you have been assessed as needing a care home place and your capital is below £22,250 you should be entitled to financial support from your local authority. If you have capital below £13,500 you will be entitled to maximum support contributing your income less £21.15 retained for personal expenses. If you have capital between £13,500 and £22,250 you will also pay a capital tariff of £1 per week for each £250 between these two figures. Capital includes the value of your former home unless it’s occupied by your partner, a relative who is aged over 60 years or incapacitated, a child under 16 years who you maintain or a separated partner who is a lone parent.
(Note that details correct for 2008/09 tax year. Figures and details may change in later tax years.)
If the state is paying do I have a choice of care home?
Yes and it can even be in a different county. The home you choose must be suitable for your assessed needs, comply with any terms and conditions set by the authority and, not cost any more than they would usually pay for someone with your needs.
What if the home costs more than the local authority is prepared to pay for?
The local authority will allow a third party to top-up who is able to do so over the long term.You are not allowed to top-up the fees yourself from capital below £22,250.
Will Social Services pay my fees whilst I am selling my former home?
If, apart from your property, your other capital is below £22,250 the local authority will help with the costs during the first twelve weeks of permanent care.
Beyond that period any financial help will be charged against the value of your former home and recovered from the eventual sale proceeds.
Do I have to sell my house?
No, Social Services can lend you the money to pay for your care charged against your property value. However, they may limit how much they will pay and it could adversely affect your welfare benefit entitlements.
Do I have to pay council tax on an empty property?
If you move into a care home and your property is left empty then you should receive full exemption from Council Tax until it’s sold.
My partner needs care, how does this affect me?
Only the partner requiring care should be means-tested. Property occupied by a partner is disregarded and only 50% of any private pension should be taken into account. The local authority will take into account 50% of joint savings therefore, to accelerate financial help it is better to have separate single accounts meeting care costs paid from the account of the person in the care home.
Is there any financial help I can claim that is not means tested?
If you are self funding, Attendance Allowance is a non-means tested, non-taxable allowance paid at the lower rate of £44.85 for those needing care by day or night and, at a higher rate of £67.00 for those needing care by day and night. Also, whether your stay is temporary or permanent if you receive nursing care in a care home you may be entitled to an NHS Nursing Care Contribution towards registered nurse time costs. This is currently a single payment of £101 per week*. If you need primarily health care, you may be entitled to full funding from your local PCT under their continuing care eligibility criteria.
What happens if I move into a care home independently and run out of money?
Once your capital reduces to £22,250 you can seek local authority assistance. However, if the home costs more than the local authority usually pays and won’t reduce its fees you could be in the difficult situation of either finding a source of top-up, or, which could be detrimental to health and well being, cheaper accommodation. If running out of money is likely you should arrange to have an assessment from your local Social Services department to make sure they will step into help and check if the care home owner can continue to accommodate you at Social Services funding rates.
What can I do to avoid this situation?
There are ways of meeting care costs for as long as you need care whilst using up only part of your capital thus, as so many older people wish, capping the cost and enabling an inheritance to be left for the family. Do not try to do it alone, seek advice.
Make sure you fully understand your entitlements from the State and the options available to best meet care costs whilst also preserving capital and savings as far as possible.