With 96% of people over the age of 65 in the UK having not made any financial provision for potentially needing future care in a residential or nursing home, it is clear that more information is needed in the public sphere that will allow them to take an informed course of action and begin to plan for the future.
In addition, The 2014 Care Act has introduced major changes to the way that the government will assist certain people financially, as care and nursing home costs are not covered free of charge by the NHS – this means that anyone who moves into a home has to pay for it themselves. While the cost of residential care differs wildly from county to county across the UK, people need all the information they can get to ensure that they aren’t paying more than they need to wherever they are.
A new downloadable guide from Caring Homes explains these changes and lays out what people with different levels of capital can expect in terms of financial assistance if they require it for a move into a residential or nursing home. Given that the process is difficult enough to get to grips with as it is, it’s important that elderly people discover how to give themselves the best quality of life at the lowest price possible.
State-funded or self-funded?
One of the most significant questions that the guide answers is the way that funding for residential care works.
Your local authority will determine whether you or your loved one need residential or nursing home care and then assess you financially. Whether you are state-funded, self-funded or a mixture of the two will be determined by their assessment of your assets and capital.
That financial assessment is based on the state of your income and assets, including interest on savings, bonds, investments, pension and assets such as your house. It does not include the value of personal possessions, nor does it include the income of a spouse, partner or family members.
• Ultimately, if your total capital is below £14,250 you will be completely financially assisted and you will not have to pay anything towards care bills.
• However, if your total capital is greater than £23,250, no financial support will be offered. This tends to be the case with most people who own their own homes. This however is set to be addressed in 2016 and is likely to change again.
• If you require a high level of care, which would mean that you struggle to perform simple tasks, you may be eligible for the £72k care fee cap which will be introduced in April 2016.
The guide explains the situation and the different options in more detail. Download it today to see what you or your loved one should be doing in preparation for potential residential care over the next couple of years.