THE NHFA
The Nursing Homes Fee Agency
EXPLAINS
PLANNING FOR CARE HOME FEES
CARE
IS VITAL FOR OLDER PEOPLE
Moving a loved one into a care home is a very difficult
and emotional time for all involved. Problems can be compounded by the lack
of information available on the financial and legal issues that need to be
addressed when obtaining and paying for care. To help negotiate this
minefield the NHFA Care Fees Advisory Services provides specialist advice
that aims to enable older people to meet the cost of their chosen care
whilst also preserving their capital.
If you, or a friend or relative has an immediate
need for care or even if you are planning for such an eventuality in the
future the following tips could be useful.
It is definitely worth drawing up a lasting power of
attorney. For the sake of paying a solicitor's fee you could save a lot of
expense and complications if in the future you were unable to cope with your
own affairs and your family had to involve the Court of Protection.
If you
are in the course of selling your house to pay for care the local
authority must disregard the value of your property for the first 12 weeks
of residential care and assist with your fees if your other capital is below
£22,250. After this period, the local authority can ‘lend’ you the money to
pay for your care through a ‘deferred payments agreement’ to be recovered
when your property is eventually sold. If you place your property on the
market whilst taking a loan from the local authority, subject to your other
income and capital, you can also claim Pension Credit with Attendance
Allowance.
If your care needs are primarily health care
needs you may be entitled to full NHS funding under your local health
authority’s continuing care eligibility criteria, which is free and not
means tested. Otherwise, The NHS will make an assessed contribution towards
your fees if you require nursing of up to £125 per week. This applies even
if you are only staying for a short respite period.
If you are self-funding your care there’s a good
chance you can claim attendance allowance. This is a non-means tested,
non-taxable DWP benefit paid weekly at the lower rate of £44.85 if you need
care by day or night and the higher rate of £67.00 if you need care by day
and night.
For many older people, an immediate
concern will be to ensure that they can afford the care they have chosen
over the long term. If you are unsure of this make sure the social services
will fund it if your money should run out, and that your care home will
continue to accommodate you for whatever the local authority might pay. A
move to lesser accommodation can be distressing. This situation can be
avoided through the prudent investment of capital. If therefore you have to
pay for care consider purchasing an immediate need care fees payment plan.
Normally requiring just part of one's capital to purchase, they are a way of
meeting care costs whilst potentially capping the cost of care. Thus, as so
many older people wish, enabling an inheritance to be left for the family.
Current care home fees are so
high that failing to plan carefully for long-term care can have disastrous
financial consequences. Residential and nursing care home fees are now
running at around £23,000 and £32,000 a year respectively. Most local
authorities expect you to pay for home care as well as residential care if
you have capital or savings of over £22,250.
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