Age-old funding issue
THE CARE HOME MEANS TEST
THE NHS may be free but elderly care is not, and those who need support have to undergo a means test to see if they can afford to fund it from their own pocket.
In practice, most people have to pay, because the bar for getting local authority help is incredibly high.
If you have total assets of more than £23,250, you will get no help towards your care costs in England or Northern Ireland.this “upper capital limit” is slightly higher in Scotland at £28,750 and is £50,000 inwales.
You only get full support in England and Northern Ireland once your assets fall below £14,250, known as the lower capital limit. In Scotland it is £18,000. In Wales, you get help towards residential care once your capital falls below £50,000.
If you own your home and live there alone, its value will count towards the means test. However, it may be excluded if your spouse, partner or a disabled relative lives there.
Some may be tempted to give assets away or even sell their home to beat the means test, but Stephen Lowe, group communications director at later life adviser Just Group, warns against this. “Under ‘deprivation of assets’ rules, your local authority will still take into account anything you gave away to reduce your
contribution to care costs,” he said. It will also examine your income. If that’s enough to cover your care costs, again, you will have to pay yourself, this is known as self-funding.
It is still worth applying for a local authority needs assessment even if you will have to pay for care, says consumer champion Which?.
This will provide a formal recognition of your needs, and your council will also tell you what services are available locally, and help you arrange care. Find out more at gov.uk/apply-needsassessment-social-services.
Most people will want to stay in their home if possible, getting informal caring and support from family, friends and neighbours.
Self-funders can pay for “domiciliary care”, paying carers to help with everyday tasks such as getting washed and dressed, preparing meals and cleaning, and general getting about.
Your local authority is the gatekeeper for all social care services. Lowe said:
“It will tell you how the adult social care system works, what services are available, and carry out assessments and organise care. GPS and social workers can also provide information and refer patients for assessments.”
The Government’s free guidance service Moneyhelper.org.uk offers impartial information on the meanstesting system. “Age UK and
Independent Age provide information on care and choosing a home, as do specialist charities such as the Alzheimer’s Society,” Lowe added.
Some charities have advisers trained to help you through the benefits process, including Citizens Advice, debt charity Stepchange and Turn2us.org.uk. Or visit Gov.uk/benefits-calculators.
If seeking independent financial advice, you can get hold of a specialist via the Society of Later Life Advisers.
The real crunch comes when somebody can no longer cope at home and has to go into a residential or nursing home, which can cost as much as £1,200 a week.
Every year, around 20,000 people have to sell their homes to meet care costs, said Tilney financial planning director Louise Higham: “This is unlikely to change even after the new £86,000 care cap comes into force from October.”
You might find that your assets shrink quickly if you go into a care home, finally making you eligible for local authority support.