THE shocking revelations of the recent Panorama programme “A Carer’s Story” on BBC1 television highlighted the inadequacies of State-funded nursing and personal care for the frail and elderly.
Now a firm of independent financial advisers has launched a new dedicated website which addresses the problem, and gives detailed information and advice which will help people considering perhaps for the first time the advantages of funding their own private nursing or personal care.
The website is called Long Term Care Online and is the work of Independent Corporate Planning Ltd.
Nowadays, the majority of us are living longer and, with medical science continuing to advance, we are surviving what were once considered terminal illnesses. This means that more of us will need some form of long-term care and the big question is, “Who will pick up the bill?”
Location lottery
Most people are unaware of just how much long-term care costs, and that the financial help available at present depends upon where you live. At present you could pay around £329 a week (£17,108 a year) at an average residential home, while average nursing home fees across the UK are £455 per week (£23,660 per year). The cost of someone visiting you at home could be between £8 and £12 an hour, and home alterations, should they be necessary, can be expensive too.
What the state will pay
If you require long-term care, and approach the State for help, you will have to undergo a financial assessment (often referred to as means- testing) to determine whether or not you qualify for assistance.
In England and Northern Ireland, if you have assets worth more than £19,500 you lose the right to help with personal care and residential costs. In Wales and Scotland, the upper limits are £20,000 and £18,500 respectively.
Although the value of your home is disregarded for the first three months of a stay in a care home, the rapidly rising values of the UK housing market mean that many homeowners fail to qualify for state assistance with long-term care once the value of their home is taken into account.
If someone applying for care has assets below the upper limit, they may be eligible for some State help towards the costs of long-term care. There is a sliding scale of financial assistance for those with assets between the upper and lower limits. The lower limit is £12,000 in England and Northern Ireland, £12,250 in Wales, and £11,500 in Scotland.
It is important to be aware that having assets of less than the lower limit will not necessarily entitle you to completely free care. You will be expected to use any income from pensions and benefits to help pay for your own care. All you will be allowed to retain is £17.50 per week for personal expenses.
The main benefits that may be available are Attendance Allowance, Registered Nursing Care Contribution, and Disability Living Allowance.
Attendance Allowance is a tax-free weekly payment made directly to the person requiring care. It is only available to those over sixty-five who pay for their own care. It is not available to those who already receive State assistance towards care costs.
The Attendance Allowance payment is £38.30 for those who require attendance during either the day or the night, rising to £57.20 for those who need attendance during both the day and night.
Registered Nursing Care Contribution is available only to those people who are in a care home and require nursing care. In England, the RNCC will pay out £40, £75, or £120 per week, depending on the needs of the individual. In Wales and Northern Ireland there is a flat rate contribution of £100 per week. In Scotland, the situation is slightly different, as both personal care and nursing care are free to all those assessed as qualifying.
Disability Living Allowance is available only to persons under sixty-five, so is only relevant to those who may require care at an earlier stage in life.
As can be seen from the information above, a great many people will find themselves ineligible for State assistance with long-term care costs. For those that do qualify, the level of benefits paid is low, and this will greatly restrict the choice of care that is available.
Financial solutions
Basically, there are two kinds of financial product to consider for long-term care: those you buy in advance and those that help you meet the immediate need for care. The earlier you take out a long-term care plan, the less it costs but, sadly, people tend to tackle the problem only when it occurs and then selling their home is often the only option.
Director of Independent Corporate Planning Ltd Alasdair MacNab commented: “It is important to get advice as early as possible so as to ensure you have the maximum options and choices should you eventually need long-term care.”
Notes for the editor:
- A summary of the Panorama programme can be found on the BBC website http://news.bbc.co.uk/1/hi/programmes/panorama/3216461.stm
- The long-term care website is at www.longtermcareonline.co.uk and the main website of Independent Corporate Planning Ltd can be found at www.icplanning.co.uk
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