Financing Care

Updated: Nov 13, 2020

Benefits: Your Entitlements

When considering your best options for funding care the first stage is to ensure that all state entitlements are explored. Here we have considered the main benefits but it is important to stress that depending on an individual’s circumstances and needs, there may be other benefits to which you, or they  may be entitled.

For further information on all the benefits listed here (as well as all other benefits) visit the Department for Work and Pensions website at www.dwp.gov.uk

Non means-tested benefits are those which you receive by right based on your circumstances are are not affected by your levels of capital or income.


Means-tested Funding

Under the NHS and Community Care Act 1990 Section 47, the social services department of your local authority (LA) has a statutory duty to assess your financial situation regarding the payment of care services. The financial assessment will either be offered to you or you can request one.

A major part of the financial assessment involves your local authority reviewing your income and capital to check how much you may have to pay for care. If you live in England the important threshold is £23,250. If you have the amount (or higher) of capital you will be assessed as being able to meet the full cost of your care.

If you have capital of £14,250 or under then your capital will be ignored in calculating how much you have to contribute to the cost of care. If the amount of capital is between £14,250 and £23,250 then the level of contribution to your care costs is determined by allocating an income value of £1 for every £250 of capital.

Whatever the assessment based on your capital the local authority will then review your ability to pay based on the assessment of your income. It is vital that before the financial assessment is carried out that you are claiming all benefits for which you may be entitled to. This is extremely important, as the means test assumes your overall income based on what benefits you should be in receipt of.

Important Note: If you are receiving or will be receiving care in your own home, the value of your home is not counted within the means test.

In calculating your financial situation/wealth any asses jointly held, only the proportion you are deemed to own is taken into account. E.g. For a couple have £30,000 in saving all in joint names, £15,00 would be deemed each person’s capital.


Pension Credit

Under the NHS and Community Care Act 1990 Section 47, the social services department of your local authority (LA) has a statutory duty to assess your financial situation regarding the payment of care services. The financial assessment will either be offered to you or you can request one.

A major part of the financial assessment involves your local authority reviewing your income and capital to check how much you may have to pay for care. If you live in England the important threshold is £23,250. If you have the amount (or higher) of capital you will be assessed as being able to meet the full cost of your care.

If you have capital of £14,250 or under then your capital will be ignored in calculating how much you have to contribute to the cost of care. If the amount of capital is between £14,250 and £23,250 then the level of contribution to your care costs is determined by allocating an income value of £1 for every £250 of capital.

Whatever the assessment based on your capital the local authority will then review your ability to pay based on the assessment of your income. It is vital that before the financial assessment is carried out that you are claiming all benefits for which you may be entitled to. This is extremely important, as the means test assumes your overall income based on what benefits you should be in receipt of.

Important Note: If you are receiving or will be receiving care in your own home, the value of your home is not counted within the means test.

In calculating your financial situation/wealth any asses jointly held, only the proportion you are deemed to own is taken into account. E.g. For a couple have £30,000 in saving all in joint names, £15,00 would be deemed each person’s capital.


Council Tax Benefits

If you qualify for the Guarantee Credit element of Pension Credit then you would normally qualify to have your council tax paid in full. If you are not receiving the Guarantee Credit element and having savings in excess of £16,000 then you will not be eligible for Council Tax Benefit.

The assessment to establish whether you qualify for support with your Council Tax if your savings are below £16,000 is based on your level of income and the amount of Council Tax that you pay.


Attendance Allowance

Attendance Allowance is a tax free benefit payable to those aged 65 or over who may need help with personal care due to physical or mental disability.

Usually to qualify you must be age 65 or over and at least one of the following must apply:

  • You have a physical disabilty (including sensory disability, such as blindess), a mental disability (including learning difficulties), or both.

  • Your disability is severe enough for you to need help caring for yourself or someone to supervise you, for your own safety or for someone else’s safety.

Attendance Allowance is paid at two rates depending on how your disability affects you, based your levels of care needed.

  • Higher rate £89.15 per week

  • Lower rate £59.70 per week

If you are aged below 65 then you may alternatively be entitled to Disability Living Allowance.


Disability Living Allowance

DLA has been discontinued by the government and replaced with Personal Independence Payment - you can still claim DLA if you were born before April 1948 and are already claiming this scheme.


Personal Independence Payment

PIP has replaced DLA. You must be under the state pension age to claim Personal Independence Payment, otherwise you should be looking at Attendance Allowance as mentioned above.

PIP consist of two components: Daily Living and Mobility.


Daily living component weekly rates are as follows:

Standard: £59.70

Enhanced: £89.15


Mobility component weekly rates are as follows:

Standard: £23.60

Enhanced: £62.25

Constant Attendance Allowance

If you claim industrial injuries disablement benefit or war disablement pension, and you need daily care and attention as a result of a disability, you can claim constant attendance allowance.

In addition to the above, in order to claim you must: need daily care and attention (for example home nursing or home meals) be classified as 100% disabled space (according to a medical examination)

the information provided relating to benefits is based upon our understanding of current qualification criteria based on information provided by www.dwp.gov.uk or www.direct.gov.uk to assess your individual circumstances you should seek appropriate advice.


Direct Payment

To receive direct payments you will need to contact your local council to ask them to assess your needs.

The amount you receive will depend on the assessment the local council makes of your needs. Direct payments are made directly into your bank, building society or Post Office.

If you already get services from your local council, ask about direct payments. If you are applying for services for the first time, your local council social services department should discuss the direct payment options with you when they assess your needs.


Figures and information gathered from AgeUK , visit their website for more information / advice on funding home care services.




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BeCaredFor

Elderly Home Care Services in South Nottinghamshire and The Vale of Belvoir 

info@becaredfor.co.uk

01949 358010