The following information has been provided by NHFA Ltd, a firm of Independent Financial Advisers who specialise in advising on Long Term Care Planning.

Meeting the cost of care
Expert advice and information, available to all regardless of means. As our older population increases so does the number of older people who own their own homes and consequently fail the means test for care and have to pay for it themselves. In fact the most recent research by the Liberal Democrats states that 70,000 homes are sold each year to pay for care. Despite this very few people seek professional advice on what is probably one of the largest financial commitments they have ever made – paying care home fees.

Whether you are being funded by the State or paying privately for your care there is much to know to ensure you get what you are rightfully entitled to in the way of local authority or NHS or welfare benefits. There are also specially designed financial products that aim to meet the shortfall in income required to meet the cost of care. Often these products only require part of your capital to purchase, releasing the remainder for the eventual inheritance that so many older people wish to leave. NHFA Care Fees Advice is available to all regardless of means. Care funding can be complex, however here is a summary of ‘Who Pays for What?’

Who Pays for What?
The following information has been provided by NHFA Care Fees Advice who are responsible for its content. Further advice, information or an appointment with your local NHFA Care Fees Adviser can be obtained by clicking here.
When moving into, or helping a loved one into a care home, fully understanding what the State provides and being certain about costs and affordability is essential for all involved. Seeking independent advice is important, however, here we seek to answer some of the most commonly asked questions.

State Funding
Who qualifies for local authority financial assistance?
If the State is paying do I have a choice of care home?
What if the home costs more than the local authority is prepared to pay for?
My partner needs care, how does this financially affect me?

Self-Funding
Will the Social Services pay my fees whilst I am selling my former home?
Do I have to sell my property?
Do I have to pay council tax on an empty property?
Is there any financial help that is not means tested?
What happens if I move into a care home independently and run out of money?
What can I do to avoid this situation?

State Funding

Who qualifies for local authority financial assistance?
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 although you will still contribute your income less £21.15 a week 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 or part thereof 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 is dependent on you or a separated partner who is a lone parent.

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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.

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What if the home costs more than the local authority is prepared to pay for?
The local authority will allow the fees to be topped up by a third party 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.

My partner needs care, how does this financially affect me?
Only the partner requiring care should be means tested. Property occupied by a partner is disregarded and only fifty percent of any private pension should be taken into account. From April 2006 local authorities have been allocated extra funds so that they do not have to ask married couples to contribute what was known as ‘liable relatives contributions’ towards their spouse’s care however they will take into account 50% of any 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.

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Self Funding

If you are self-funding your care because you are not eligible for local authority funding, there are other forms of financial assistance you may be entitled to. These are mentioned below and you can contact NHFA Care Fees Advice for more information by clicking here.

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Will the 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 as above 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.

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Do I have to sell my property?
No, the 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 effect your welfare benefit entitlements.

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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.

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Is there any financial help 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 per week for those needing care by day or night and, at a higher rate of £67.00 per week 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 Registered Nursing Care Contribution (RNCC) towards the cost of your nursing care. If applicable, an amount of £101* per week is paid by the NHS direct to the nursing home as a contribution towards the weekly fees. If your needs are primarily health care needs, you may be entitled to full funding from your local Primary Care Trust (PCT) following an assessment under their continuing care eligibility criteria. The above applies to England only. Wales, Northern Ireland and Scotland pay different amounts. Visit www.wales.gov.uk, www.healthandcareni.co.uk and www.scotland.gov.uk for more information.

* This is a provisional figure based on 2007/08 and maybe subject to review.

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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 seeking less expensive accommodation, the move to which could be detrimental to health and well being. If there is a likelihood of running out of money it’s important for you to arrange an assessment of your care needs with the local social services department to ensure they will step into help. Also check if the care home owner can continue to accommodate you at social services funding rates, or will require a third party top-up.

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What can I do to avoid this situation?
There are ways of meeting care costs for as long as you need care whilst potentially using up only part of your capital. For example the use of Immediate Need Care Fee Payment Plans can contribute towards capping the cost from the outset thus enabling an inheritance to be left for the family. The important message is to not to try to do it alone, seek advice. NHFA specialise in this, and through their local advisers will ensure you fully understand your entitlements from the State and the options available to you for meeting your care costs, whilst also preserving capital and savings as far as possible. Click here for NHFA Care Fees Advice

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FUNDING YOUR CARE
The funding of care fees is a complex area and we strongly advise that you seek specialist financial advice. For example, even if you are self-funding, you may be entitled to State assistance towards your care of which you are currently unaware. You may also need to understand the financial products specifically designed to meet care costs and preserve capital as far as possible.  NHFA Care Fees Advice is available to all regardless of means, without any obligation whatsoever to follow any of our recommendations. If you wish to complete and submit an online Care Funding Advice Application Form to obtain your personalised Care Funding Report please click here Alternatively, if you wish to simply find out more please tick the relevant box below and we will respond accordingly:

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