Care Home Fees – Partial Funding And Benefits
The rise of an ageing population has led to a sharp increase in the number of individuals in care homes. Whether you are embarking on this process for the first time, or have already had experience in this area, it is important that professional assistance is sought in order to ensure that you receive the partial funding and benefits you are entitled to. This article will provide a general overview of the partial funding and benefit arrangements available to certain individuals seeking a care home.
One of the main contributors to the cost of care is the local authority. Their contribution is provided depending on the size of the individual’s assessable capital, often referred to as the ‘savings limit’. In order to be eligible for this contribution, the individual’s upper savings limit must be less than £21,500. It should be noted that when assessing this savings limit, many sources of the individual’s income are partially or wholly disregarded. Personal expenses of £20.45 per week are disregarded for the purposes of the means test, as is the income of any relevant partner. In addition, the first £13,000 of capital is not included, after which the individual is classed as having £1 of income for every £250 of capital.
If an individual has an assessable capital greater than £21,500, they will have to meet the full cost of their care. This may sound like a very low threshold on the face of it, but it is important to bear in mind that many assets are disregarded for the purposes of determining the individual’s capital. For instance, the value of the individual’s property is wholly disregarded, as are their business interests, joint business assets and their personal possessions.
Another benefit available to certain individuals requiring assistance with their care home fees is the Attendance Allowance. This allowance acts as a tax-free benefit for people aged 65 and over and can be applied for via a claims form available from the Department for Work and Pensions. As with many aspects of care home fees, it is useful to seek professional assistance to find out what you are entitled to in law, and to help advise you of your rights and responsibilities. Our team of highly trained solicitors have a wealth of experience dealing with Residential Care Fees and provide clear, easy to understand legal advice at low sensible fees. For more information, feel free to give us a call on 01536 276300.