Long Term Care
Funding of care fees: Understanding the true costs to you or your loved ones
Many older people receiving care, and others who anticipate needing help in their later years, will have followed with interest and some optimism the Care Act of 2014 through Parliament.
Changes came into force from April 2015 in the way that Local Authorities assess care requirements. Further changes were due from 2016 in personal financial limits (the "Charge Cap") but have now been postoponed until 2020 at the earliest.
Proposals were at the time to introduce from 2016 a "cap" on an individual's requirement to pay for social care with that cap set initially at £72,000 and to introduce a higher capital limit (the amount of savings which a person can have and still qualify for funding towards care fees) from the current level of £23,250.
The majority of people will not, however, be aware that these changes were postponed by the Government and that it remains likely that those with modest assets will still be required to contribute substantial sums towards the cost of care.
Understandably, Local Authorities – facing extreme financial pressure – will be under pressure to recover funds from those who are able to pay.
There are essentially two types of care need – health care and social care. The importance of the distinction is that health care (including nursing care) is the responsibility of the NHS and is free at the point of use, whilst social care - whether in your own home or in a Nursing Home - is the responsibility of the local authority and is means tested. Later Life decisions and resourcesErrors in defining which type of care an individual needs are the cause of most funding disputes and appeals.
The Care Commission specifically highlighted the need for those liable to fund care to have access to appropriate advice. This is such an important area to understand and plan for, whether for you or for loved ones who need your help. We take great interest in the application of the Care Bill and carry appropriate qualifications to give full and independent advice in this area.
This article should be used for information purposes only and under no circumstances be used for guidance. You should always contact a Financial Adviser before making a financial decision.
Remember, if a Financial Adviser cannot call themselves "Independent" - then they aren't Independent !