Paying for Care at Home

The financial assessment

If your social services assessment (or social works department in Scotland) decides you just need some care in your own home, a care plan will be drawn up. In England and Wales each Local Authority can decide whether it wishes to charge for services provided to help you remain in your home but most do and will offer you a financial assessment (means test) to see if they would pay for the care, or ask you to pay for it. You can decline it although this could mean that you will end up paying for all of it.

In Scotland if you over 65 such social care will be provided free of charge but if under 65 you will still be financially assessed.

Not all services are charged –services of an occupational therapist or any service provided by the NHS such as visits by a district nurse, Visits to a day centre visits are often free of charge, although transport to and from day centres are likely to be charged and certainly you will be assessed paying towards visits from carers unless you qualify for NHS Continuing Healthcare.

Means-testing

In assessing your financial circumstances if you have more than £23,250 (England 2011/12) in capital (not including the value of your home) you will be charged the full cost of your care. (N.B. Your homes value is disregarded for domiciliary care but not if you have to enter a care home).

If your capital is less than £23,250 (England 2011/12), your income and any savings above the lower capital threshold (£14,250 England 2011/12, £10,000 in Scotland 2011/12) will be taken into account but you must be left with at least the basic amount of Pension Credit plus 25% (16.5% in Scotland). As the current rate (2011/12) for Guaranteed Pension credit is £137.35 this gives a protected amount of income of £171.68 (2011/12 in England) and (£159.89 in Scotland).

Capital between the Lower and Upper Capital Thresholds (£14,250 and £23,250 England 2011/12) is converted into tariff income at the rate of every £250 of capital between these two limits equal an extra £1 per week income.

The income of your partner or spouse and savings solely in their name is never included but half of any joint savings is counted as yours.

Please note: Unlike the means test for permanent residential care Local Authorities do have discretion to apply their own higher thresholds and you should check with your own local authority to see what they use.

Calculation

Income (including any tariff income) minus

actual costs incurred on any rent or mortgage payments
actual payments made for council tax
an allowance for general living costs (Generally Income Support or Pension Credit entitlement + 25%)

This produces a disposable income. You may then be asked to pay up to 95% of this disposable income towards the cost of care, although should your care costs require less than 95% you will only be asked to use as much as necessary.

Direct Payments

Instead of receiving "arranged services" provided by your Local Authority your Local Authority has a legal duty to offer you (or a responsible person on your behalf) "Direct Payments" but you are under no obligation to accept them.

For more detailed information on Direct payments visit direct payments.

Self Funding

Should your capital exceed exceed the Upper Capital threshold (£23,250 -England 2011/12) you will need to pay for your own care which could either be provided by the Local Authority or more likely by private carers.

One option which could be looked at to help limit the total cost of such long term domiciliary care is to purchase an immediate needs care fees annuity which would pay an ongoing tax free defined benefit to your chosen registered carer and would continue to pay even if you need full time care in a care home care.
To find out more about care fees annuities visit care fees annuities.

Help towards meeting care costs

If you are in need of care or are caring for someone who does, and they do not already receive any social security benefits, you may be able to claim at least some of the following to help you meet the cost of care:- Attendance Allowance or Disability Living Allowance (if under 65) Carers Allowance and possibly some Council Tax reduction. For more information about any of these please see State Benefits