Care home funding confusion poses risks to both families and advisers

Monday, 16 January 2012

The Society of Trust and Estate Practitioners (STEP) is calling on the UK government to clarify the legal and practical uncertainties around care home funding in order to put an end to the postcode lottery created by the current system. 

STEP Worldwide Chairman, Michael Young, addressed the STEP England and Wales Regulatory Group where he outlined the problems with the current system and the resulting uncertainty faced by families and those that advise them.

Mr Young said: “The situation that has now been created around funding the costs of long term care creates an impossible position for everyone – local authorities, the public and advisers alike.

We have a current legislative framework which few support, not least because it creates a postcode lottery based on the attitudes of local authorities. Surely it should not be possible for local authorities to pick and choose what legislation they will enforce and what they will ignore,” said Mr Young.

His speech also warned advisers to proceed very carefully in discussions with clients who request help in avoiding care home fees and to clearly articulate the potential pitfalls of any such scheme.

In addition to publishing advice to its members warning of the dangers around products designed to avoid paying care home fees, STEP will be urgently writing to Ministers and Opposition spokespeople highlighting the difficulties being faced by those wanting to make plans for their later years.

The full text of Michael Young’s speech can be found here: www.step.org/carehomefees