Paying for care: new capital limits now apply
16/04/2007
If you, or someone you know is about to embark on long-term care, then you should know about the recent increases in capital limits.
As from April 10th 2007 the proposed lower capital limit was raised from £12,750 to £13,000, and the higher capital limit was raised from £21,000 to £21,500.
Individuals with capital of below £13,000 will have to contribute their income towards the care home fees, less £20.45 retained for personal expenses (previously £19.60). Individuals with capital of between £13,000 and £21,500 will also have to contribute a further amount of £1 per week for each £250 of capital between these two figures.
Individuals with capital above £21,500 will have to meet the full cost of their care. It's important to realise that "capital" also includes the value of your former home unless it’s occupied by your partner, a relative who is aged over 60 years or incapacitated, a child under 16 years who you maintain or a separated partner who is a lone parent.
NHS Nursing Care Contribution
The NHS contribution towards nursing care costs in nursing homes is payable in three bands, which have been increased with effect from 1st April 2007. The lower band is not changed at £40, the middle band has increased from £83 to £87, and the higher band from £133 to £139.
Where an individual’s care needs are primarily health care needs it may be possible that their care home costs could be fully funded by the NHS under their continuing care eligibility criteria. They should seek careful assessment of their needs comparing the results with their health authority’s published continuing care eligibility criteria.
Attendance Allowance
If individuals are self-funding their care they can claim attendance allowance. This is a non-means tested, non-taxable Department of Work and Pensions benefit paid weekly at the lower rate of £43.15 (previously £41.65) if they need care by day or night and the higher rate of £64.50 (previously £62.25) if they need care by day and night. Worth up to £3,354 per annum.
Philip Spiers, Director of NHFA said: “Many older people who are forced to sell their homes to pay for care fail to obtain all they are entitled to from the state towards their costs. This often includes the12 week property disregard funding from local authorities for the first 12 weeks of care and attendance allowance thereafter. These two together can add up to in excess of £6,000.
"Whilst increases in state assistance are welcome they nowhere near cover the fee increases imposed by care homes at the same time. It’s essential older people seek advice when paying for care not only to ensure they maximise benefits but also to understand the specialist care funding products available like ‘Immediate Need Care Fee Payment Plans’ which can effectively cap the cost of care.”
NHFA Care Fee Advisory Services are available to all regardless of means and can be accessed through a freephone Care Advice Line 0800 99 88 33, or via their website at the link below.