Long Term Care in England

Means Testing

Local Authorities/ Primary Care Trusts will only provide maximum funding for those who pass a means test.

Those with personal capital assessable assets (and ½ of any jointly held assessable assets) exceeding only £22,250 (2008/9) have to pay for all of their own care, unless you need nursing care in a Care home or Elderly Mentally Infirmed (EMI) when you qualify for a Registered Nursing Care contribution which is an NHS contribution made towards the costs of a home employing a registered nurse, not towards the costs of personal care nor accommodation and food.

Only those currently below: £13,500 (2008/9)

Qualify for the maximum Local Authority /Primary Care Trust budget, often known as the standard rate or contract rate. This rate varies from one local authority to another. This contract rate may not even be sufficient to pay for some local authority run homes.

Even where you do qualify for the maximum local authority funding, they will take all your income including most benefits, bar your Personal Expenses Allowance (currently, £21.15 per week 2008/9), plus, if you are over 65 and getting Savings credit, either £5.45 per week (if single) or £8.15 per week (if a couple) Pension Savings Disregard, away from you as contributions towards their funding.

Those whose capital falls in between the upper and lower capital thresholds will have the value of any capital exceeding the Lower limits theoretically converted into “income” at a rate of £1 extra “notional income” for every £250 worth of capital exceeding the lower limit.

This is then added to any actual income received including most benefits (or any which you would be entitled to even if not claiming them) , bar your Personal Expenses Allowance (currently, £21.15 per week 2008/9), plus either £5.45 per week (if single) or £8.15 per week (if a couple) (2008/9). Pension Savings Disregard providing you are over 65). The total is then compared to the actual cost of care. If your combined weekly income figure exceeds the cost of care, once again you would need to pay for your own care until your capital reduced to such a level as the “income” didn't’t meet the cost of care. If the combined income, however, falls short of the required care costs, the local authority would fund only the difference.

Clearly then should your assessable capital exceed £ 22,250 (2008/9) and you want to try and ensure such care can continue to be paid for indefinitely, professional care fees planning will be essential.

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