Moving into a Care Home can be a difficult time, the rules and regulations when deciding who pays the fees, including nursing care, can be complicated. Here we have tried to answer some of the more commonly asked questions. We cannot however give individual financial advice but have supplied a list of useful contacts.
Who qualifies for Council funding?
What is Capital?
Capital is the total value of savings, bonds, shares property and land owned by the resident.
A resident’s resources are either capital or income. It may not always be obvious whether a payment is capital or income, but generally, a payment of capital is one which is:
– not in respect of a specified period; and
– not intended to form part of a series of payments.
Examples of capital are shown in the following list. The list is intended as a guide.
Any savings held in:
Can I transfer my capital to someone else? (Deprivation of Capital)
During the financial assessment the Council may consider that a resident has ‘deprived’ themselves of capital in order to reduce accommodation charges.
A transfer may be considered as ‘deprivation’ regardless of the time of disposal if it was considered to be with the intention of avoiding accommodation charges.
If the Council decides there has been deprivation of capital it will consider the resident as having ‘notional capital’, they will treat the resident as having the capital and charge for accommodation.
Where a resident transfers capital to avoid accommodation charges within 6 months of assessment of needing care the council has the power to recover the cost from the person/s to which those assets were transferred.
Do I have to sell my property?
If you do not put your house on the market the council will lend you money against the value of your property which will be re-paid once the house is eventually sold, however they may limit how much they will pay and because it is not on the market it will be treated as capital and subject to its value.
Will the Council pay my fees whilst I sell my property?
If savings are below £23,250.00 the council will disregard the value of the property and pay towards the cost of care for the first 12 weeks. After 12 weeks the Council will recover any payments received from the eventual sale of property.
How will this affect my partner?
Property occupied by a partner will be disregarded, 50% of any private pension and 50% of joint savings.
What will happen when I run out of money?
Once your capital reduces to the upper limit you can ask the Council to pay towards the fees. The Home will negotiate with the council an agreeable weekly fee.
Do Social Security Benefits stop? Are there other benefits I can claim?
How much is Personal Allowance?
Personal Allowance is paid with weekly pension; the current rate is £24.50 and will be deducted from the total pension before working out the resident’s contribution.
There may be times when the resident receives the majority of a couple’s income leaving the spouse at home with insufficient income to maintain his/her lifestyle. The Council may increase the resident’s personal allowance so they can continue to support the spouse living at home.
Who decides which Care Home?
The person moving into the Care Home has the right to choose which one, it does not matter whether they are getting help from the Council or whether they are paying the fees privately as long as the Home;
Freephone information line – 0800 169 65 65
Counsel and Care
Advice Line – 0845 300 7585
Department for Work and Pensions
Attendance Allowance – 0845 712 3456
CHARGING for RESIDENTIAL ACCOMMODATION GUIDE (CRAG) April 2012 (Dept of Health)