Paying for Care
It’s been confirmed in the Autumn Statement today that the Social Care Reforms, including the Care Cap of £86,000, that were due to come into effect from October 2023 have been delayed for two years. Given that the original Care Cap of £72,500, which was due to come into effect from April 2016, was postponed to April 2020 and then scrapped altogether, will we ever see changes to social care and how it’s paid for?
Rather than dwell on the “what ifs”, it is important that individuals and their families are aware of the current rules when it comes to paying for care. Highlighted below are some of the key points to consider.
Care needs and financial assessments
Anyone who has a need for care or support, regardless of their financial position, can ask the adult social services department of their local council for a care needs assessment, even if the care or support is being provided by a family member. Carers are also entitled to ask social services for a Carers Assessment.
If the care needs assessment shows that an individual has eligible needs, the local council should prepare a care and support plan detailing how those needs will be met. The local council will also carry out a financial assessment to establish what contribution the individual will need to make towards their care costs.
Capital Threshold – £23,250
If an individual has capital over £23,250, they will have to pay for the full cost of their care. This is often referred to as being a “self-funder”.
Some capital assets must be disregarded during the financial assessment – for example, if you receive care at home or your spouse lives in the property the value of your house will be ignored, and some investments that have a life insurance element must be disregarded.
If you are a self-funder it is important that you seek advice at an early stage so that you understand the capital disregards that apply in your case and ensure that you are claiming all the benefits and exemptions that may be available to you, such as Attendance Allowance or Council Tax exemptions.
You should also consider obtaining financial advice to see what steps can be taken to preserve your capital. You could also consider whether an Immediate Care Needs Annuities, where a one-off premium is paid to provide an income for your lifetime to use towards your care costs, is a viable option.
For couples, consider whether one or both of you should change your Will. Most couples leave their estate to their spouse but if the survivor needs care then the whole estate will be available for care fees. An alternative is to review the ownership of assets and to pass them by Will into a trust or to your children. If you want to leave 50% of your property to then ownership will need to be changed to tenants in common.
People often ask if they can make gifts or transfer assets during their lifetime as a way to avoid paying care fees. The Care Act Guidance states that where an individual attempts to deliberately avoid paying for their care by gifting their income or capital to others, the local authority can treat the individual as if they still own the assets when carrying out a financial assessment. For example, if you gift £10,000 to a child and the local authority consider this to be deliberate deprivation of assets, your assets would have to fall to £13,250 (£23,250 less the £10,000 gifted) before the local authority would contribute towards the cost of your care.
Capital below £23,250
Once a person’s capital falls below the threshold, they can ask the local authority for financial assistance towards the cost of their care however, the individual will still be expected to make a contribution from their capital, until this falls below £14,250, and their income.
An individual living in a care home is entitled to keep a weekly Personal Expenses Allowance of £25.65 whereas someone receiving their care at home will be allocated a weekly Minimum Income Guarantee to cover their outgoings. If you have a spouse, a portion of your pension income should be allocated to them.
If an individual has additional outgoings that are directly related to their disability, they can make a claim for additional Disability Related Expenditure. This could include the additional cost of specialist food, clothing or equipment or additional heating costs.
Could my care be paid for by the NHS?
You should ask a healthcare professional to consider whether you might be entitled to NHS Continuing Health Care. If they agree you may be, a full assessment will be carried out to decide whether you are eligible.
If you are not eligible, but you are assessed as requiring nursing care in a care home, you should receive NHS-funded Nursing Care. The current weekly rate is £209.19.
When being discharged from hospital, the NHS will sometimes provide a reablement package of care which is funded for up to 6 weeks. This may cover the cost of care or support at home or in a care home.
Some individuals who have been kept in hospital under the Mental Health Act may quality for s117 aftercare after they leave hospital.
Can I pay a family member to provide my care?
The Office of the Public Guardian has issued guidance for Deputies who are asked this question, and the guidance may be helpful for individuals or attorneys. If there is a conflict of interest, for example an attorney cannot pay themselves for care if the LPA does not provide for this, or there is a dispute about whether a family member should be paid, then an application can be made to the Court of Protection.
Overview
The current care system is complex and is considered by many as unfair. Successive governments have failed to reform the system and carers, both paid and unpaid, often feel undervalued.
Care is one of the most expensive purchases a person will make in their lifetime and care planning should be as important as making a Will, estate and tax planning and preparing Lasting Powers of Attorney.
If you would like to discuss paying for care, or any of the issues referred to above, please get in touch at aza@bennett-griffin.co.uk or call 01903 706955.
The information above is for general guidance only and is not intended to be legal advice. It is important that you seek specialist professional advice so that the law can be applied to your individual circumstances.