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See also : Residential Care Homes and Nursing Homes:
Todays Elderly
People were
brought up believing that they would be looked after by the state throughout
their lives. This is not the case though, and as far as long-term care
costs are concerned the state only pays for the least wealthy.
The NHS continues to provide medical
care in hospitals which is free to everyone (getting
a bed though, in a long stay hospital if you are elderly and infirm is
often not a simple matter!!!). However,
under the Community Care Act of 1990, the provision of long-term care outside hospitals has
become the responsibility of individual Local Authorities and it is not
free to every one.
If your Local Authority agrees that
you need residential or nursing home care it will assess your means to
work out what proportion of the costs is your responsibility, and what
the Local Authority will pay. If you can expect a contribution from your
Local Authority, the Authority will contract with the home, pay the home
direct but ask that you make a contribution towards the fees to them.
The size of the contribution depends on the assessment of your wealth
by a means
test (which
may include the value of your own home
!)
Your charge will be worked out on the basis of the details that you provide.
- personal details
- financial representative / 'third party' details
- income details
- capital details
- details of any property you own
- details of any on-going commitments you may have
- Calculating a financial assessment of how much you will have to pay
The next stage is to calculate your charge, which is done as follows (the method used is a very similar to how Income Support is worked out):
Weekly Income
All your weekly income is added up. Examples of income are:
- Any state benefits you receive (e.g. State Retirement Pension, Pension Credit, Income Support).
- Trust Fund Income
- Occupational Pensions
- Annuity Income
If you receive Attendance Allowance and Disability Living Allowance (DLA), the care component payment will stop after your first four weeks in a home.
The Attendance Allowance/DLA will be taken into account in working out your charges for the first four weeks if you have moved into a residential/nursing home permanently. These allowances will be ignored if your stay is temporary.
If you receive the DLA mobility component, this will be entirely disregarded for assessment purposes, whatever the circumstances of your admission to the home many be.
Any payments from charitable or voluntary sources can be taken into account, although you will be able to keep the first £20 per week as well as your 'personal expenses allowance'.
Voluntary payments you receive to help pay your charges (known as 'third party contributions') or one-off payments for specific purposes will be disregarded when calculating your charges.
Income on Capital
A weekly income is worked out on your capital. Examples of capital are:
- National Savings
- Bank or Building Society accounts
- Stocks/Shares & Government Stocks (current market value is taken)
Under the rules the income from capital is called tariff income.
The weekly tariff income is worked out by adding up all your savings. The first £14,000 is not included in the calculation. The tariff is calculated at £1 per £250 or part thereof. For example if you have £15,500 the tariff income would be £6.00.
The value of any property you own is treated as capital and tariff income is calculated in the same way as above.
The tariff income figure is then added to your actual weekly income.
If you have more than £23,000 in savings you will be unable to claim assistance.
What can I do if I am unable to deal with my own financial affairs?
If you are unable to manage because of physical difficulties, you can appoint someone else to act on your behalf by giving them Enduring Power of Attorney. If you are unable to manage because of mental disability, the Benefits Agency can appoint someone to help you with your state benefits. The Court of Protection can appoint someone if you have other financial resources.
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