paying for a care home SUPPORT AND information to help you plan bupa.co.uk/care-homes
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Paying for care is a subject few people have any experience or knowledge of; it is a specialist and complex area and yet more families are facing this challenge every year. This guide sets out important facts very clearly, providing an insight into the issues to be considered before seeking professional advice and guidance. Nicola Cave Managing Director, Eldercare Solutions Ltd Eldercare Solutions Ltd provides a broad range of information and resources for those seeking care and to those working within the care sector. 3
CONTENTS 6 Introduction 7 How much do care homes cost? 8 Local authority or private funding? 8 What the state will normally provide 10 NHS continuing care 10 First steps 11 Direct payments 13 if you will be paying for your own care 13 What will you be paying for? 14 What happens if your capital falls below the upper limit? 14 Changes in capital or income 15 Insurance policies to pay for care 15 Private medical insurance 17 if the local authority will be paying towards the costs of your care 17 The financial assessment 17 Your choice of care homes if the local authority is paying 18 Moving to a home that costs more than the local authority will pay 19 Third party contributions 19 Moving to a different part of the country 4
20 Financial assessment 20 Capital and income 22 Personal expenses allowance 22 Couples 23 Pensions 23 If you live on your own 23 If someone still lives in your home 24 If you own your home jointly with someone else 24 The first 12 weeks 24 Deferred payments and legal charges 25 Going into a care home at short notice 25 Giving away your assets 27 Pensions and benefits 27 Contributing to the costs of your care 27 Pensions 27 State benefits which you currently receive 28 Pension credit 28 Attendance allowance and disability living allowance 28 Carer s allowance 28 Housing benefit and council tax benefit 30 Useful contacts 5 5
Introduction Paying for long-term care is a complex Throughout this booklet we use the term subject, and many people feel that they care home. This reflects the current term don t know where to start. This booklet used for the registration of residential and is an introduction to the different ways of nursing homes. A care home that provides paying for long-term care in a care home, only personal care is the equivalent of from local authority funding to paying the a residential home. A care home that full cost yourself. provides personal care and nursing care is the equivalent of a nursing home. Where As we all now know, the state no longer the distinction between personal care and provides care from the cradle to the nursing care is significant for funding, we grave. Instead, it provides a safety net, make this clear. providing funding for a level of care for the less well off. But if you have more than All the information and figures given in this a certain amount of capital and income, guide were correct at April 2013, but please you will have to pay some or all of the note that they may change. Some figures costs of accommodation and personal change annually in April. care in a care home. As you read, it may Please note become clear that you are likely to have to Everyone s situation is different. The pay the costs of care yourself, or that you information that follows is intended are likely to be eligible for help from your as a useful guide, but you should take local authority. However, to understand independent professional advice about the situation fully, we do recommend that your own circumstances before making any you read the whole booklet. decisions. We have included some useful contacts at the end so that you can discuss your personal situation in more detail. 6
How much do care homes cost? It is impossible to put an exact figure on the cost of care in a care home. It will depend on a number of factors, including: the type and level of care you need the style and location of the care home the size and style of your room the level of services offered, such as entertainment, activities, and health and beauty treatments such as physiotherapy or hairdressing The costs will generally cover 24-hour personal care, 24-hour nursing care if you are assessed as needing it, accommodation, meals, laundry and many of the facilities of the home. Those who require nursing care are very likely to receive Funded Nursing Care, which will reduce this weekly cost by 109.79 per week (England only). In Scotland, you will be assessed for free personal care and nursing care contribution. Most retired people need to draw on capital or seek help from others, such as their local authority to meet these costs. For example, you may be surprised to know that around two thirds of residents in Bupa care homes receive at least some financial help from their local or health authority. To find out if you are eligible for financial assistance, visit bupa.co.uk/funding-indicator Fees for care will range from about 550-1,200 per week subject to assessment. Fees may be more than this in some parts of the country, depending on the particular care needs of the resident and on the room you choose. Based on prices at the time of going to press in August 2013 7
Local authority or private funding? England Your local authority will pay for the cost of your care if your capital is less than 14,250. Your local authority will still pay, but not fully, if your capital is between 14,250 and 23,250. For every 250 you have over 14,250, they will subtract 1 a week from the The first thing to establish is whether you may be eligible for any contribution towards care home costs from your local authority or the NHS (in England and Wales). It is also possible that the help for which you are eligible may change over time. For example, your capital may drop below the upper capital limit or your nursing needs may increase. What the state will normally provide The amount your local authority will contribute to the cost of your care depends on the value of your capital and income, and whether you live in money they contribute and you will have to make up that amount as your contribution. You will have to pay the full cost of your accommodation and personal care if your capital is over 23,250. If your capital is less than the upper limit, but your weekly income is more than your care home fees and the personal expenses allowance of 23.90 added together, you will have to pay the full cost. England, Scotland or Wales. 8
Funded Nursing Care (FNC) In England, the NHS contributes to the costs of nursing care for everyone who is assessed as needing it, whether it is you or the local authority who is paying for your care. This is called funded nursing care or FNC. This funding is not paid directly to you. The NHS will pay it to the care home either directly or via the local authority. The normal amount you will receive is 109.79 per week. The rest of the costs, for accommodation and personal care, will still have to be met by you or the local authority. If you are moving into a care home because you need nursing care for an ongoing medical condition, you should check whether you might be eligible for fully funded NHS continuing care (see page 10). Scotland Your local authority will pay for the cost of your care if your capital is less than 15,500. Your local authority will still pay, but not fully, if your capital is between 15,500 and 25,250. For every 250 you have over 15,500, they will subtract 1 a week from the money they contribute. You will have to pay the full cost of your accommodation if your capital is over 25,250, but you will receive a contribution to the costs of your personal care (see over). If your capital is less than the upper limit but your weekly income is more than your care home fees and the personal expenses allowance of 23.90 added together, you will have to pay the full cost. All figures correct at August 2013 9
Personal care and nursing care contributions In Scotland, people over 65 receive a flat rate contribution of 166 per week towards personal care, irrespective of their capital and income. A flat rate contribution of 75 per week is made towards nursing care, regardless of age, in addition to the contribution towards personal care. Wales Your local authority will pay for the cost of your care if your capital is less than 23,750. You will have to pay the full cost of your accommodation and personal care if your capital is over 23,750. If your capital is less than 23,750 but your weekly income is more than your care home fees and the personal expenses allowance of 24.50 added together, you will have to pay the full cost. Funded nursing care A flat rate contribution of 120.55 per week towards nursing care is made in Wales, irrespective of your capital and income. NHS continuing care* If you have particular nursing needs, you may be entitled to full NHS funding for your care home. In England this is called NHS continuing care. NHS continuing care is not always granted permanently and is regularly re-assessed. Your health authority can give you more information about this. If you are in hospital, your needs should be assessed before you are discharged. First steps If you think you may be eligible for help from the local authority, contact your local social services department (social work department in Scotland) for an assessment of your needs. During the assessment, they will discuss your needs and wishes with you. It is important to be honest about your situation, so that they can offer you the best help for your circumstances. After this assessment, the care plan they produce will recommend whether or not you need to go into a care home and whether you need personal care or nursing care. You should also request a local authority assessment of your needs if you think you may need to ask your *Does not apply to Scotland 10
local authority to contribute towards your care costs in the future, if your capital falls below the upper limit. You will want to be sure that the local authority agrees with you about the type of care you need, so that it will be willing to contribute to the costs if you become eligible. If you think you need nursing care, you should also request an assessment for funded nursing care, so that the NHS will contribute to the costs of your nursing care. If you do need to move into a care home, social services will then carry out a financial assessment to work out how much you will have to contribute to the costs (see Financial assessment section). This is called the resident or client contribution. If you expect to pay for your care yourself, you do not have to involve social services, but the manager of the home you choose will want to carry out an assessment to make sure that the home can meet your care needs. Direct payments Since April 2003 every local council has offered people who needed help to stay in their own home money instead of arranging services for them. These direct payments enable you to choose how to organise the help you need in a flexible way. The vast majority of people getting social services from the council have a right to direct payments. Your social worker should discuss this with you when they assess your care needs. Your council will tell you more about the arrangements and the limited circumstances in which direct payments are not appropriate. Direct payments are intended to support adults in independent living, so you cannot use them to pay for permanent residential accommodation. You may be able to use direct payments to secure occasional short periods in residential accommodation, if your local council agrees that is what is needed. Further information about direct payments can be found at http://www.dh.gov.uk/en/ Publicationsandstatistics/Publications/ PublicationsPolicyAndGuidance/ DH_083561 All figures correct at August 2013 11
CHANGES TO THE SOCIAL CARE FUNDING SYSTEM The Government has announced that it will be implementing a new funding system for social care. This new system will come into effect from April 2016 subject to the passage of legislation. There will be a cap of 72,000 placed on the costs that an individual (in England) has to pay to meet their eligible care needs. The definition of eligible needs will be set out in legislation but many Local Authorities have already set their criteria at substantial care needs or above i.e. if you have moderate or low care needs, the cap will not apply. The cap is calculated on the weekly amount that the Local Authority would be prepared to pay for your care if they were providing it, not the actual cost of the care at the Home that you choose. No account is taken of accommodation costs, food and other associated charges and expenses. The upper capital limit for means-tested support will be increased to 118,000 but, in reality, due to the continuation of the tariff income system, only people with assets below the proposed lower limit of about 17,500 will get maximum Local Authority contributions from outset - and even then, they will still be expected to contribute the majority of their income. In summary, researchers have suggested a cap of 72,000 means that only about 10% of people will benefit from these proposals. If you would like to talk to a specialist adviser who can explain how the changes are likely to affect you or you would like advice about the best way to pay for your care right now, please call Bupa s trusted advice partner, Eldercare Solutions, on 0800 082 1155 or visit their website for more information www.eldercaregroup.co.uk 12
If you will be paying for your own care If you have capital of over 23,250 ( 25,250 in Scotland, 23,750 in Wales), you will have to pay the full accommodation and personal care costs, although in Scotland you will receive a contribution to your personal care costs and if assessed as needing nursing care, a nursing care contribution will also be paid. You are free to choose any home within your budget so long as it provides the kind of care you need. For example, you may want to move to a local home that offers only personal care, and be able to pay the fees, but if you need nursing care the home may not be able to accept you. What will you be paying for? When you have chosen the right care home for you, you should be given a written contract. Make sure that you are clear about all aspects of the contract, particularly fees. Useful questions to ask include: What will be covered by the fees (eg, accommodation, meals, personal care, laundry)? Are there any extra costs (eg, organised activities, chiropody, hairdressing)? How often are the fees reviewed? How much notice will you be given of any increase in fees? How much notice would you have to give if you wanted to move to a different home? What charges would be made if you went into hospital for a short time, or on holiday? Would you have to take out your own contents insurance? For how long would the home expect payment if you were to die, and how soon would your effects have to be collected? (It is important that your relatives are aware of this, to avoid the distress of finding that fees still need to be paid.) All figures correct at May 2010 13
What happens if your capital falls below the upper limit? If your capital falls below 23,250 ( 25,250 in Scotland, 23,750 in Wales), you can apply to the local authority for help with the costs of your care. In Scotland, this will be in addition to your personal care allowance. This process can take some time, so it is worth approaching them a few months before it happens so that they can carry out a financial assessment (see Financial assessment section). However, if the home you have chosen costs more than the local authority would normally pay for your care needs, you may have to arrange for someone to top up* the local authority s funding (see page 19, Third party contributions). It is therefore worth considering whether you can afford the home of your choice in the long-term. in another part of the country as a self-funded resident and your capital reduces to the upper limit, you should approach the local authority for the home in which you live now. Changes in capital or income Most local authorities only review financial assessments annually, so if your capital or income change significantly during the year you should inform the local authority. This is because if you have between 14,250 and 23,250 (or the equivalent limits in Scotland and Wales) the amount you have to contribute to the cost of your care may change. If your capital falls below these key figures, the help you can receive from the local authority changes. If you think that your capital may reduce to the upper limit at some point in the future, it is worth checking before you move in that the care home of your choice would be willing to accept local authority funding if it became necessary. If you originally moved to a care home *Top ups are not available in Scotland 14
Insurance policies to pay for care Immediate care insurance (also referred to as a care fees annuity) may be suitable if you are currently considering moving into a care home. It involves paying a single lump sum at the time you decide you need care. The cost is based on how long the insurer thinks you ll need care for, and the level of care you will need. While the cost can seem a large amount, it will provide a fixed payment for as long as you need care, and can protect the rest of your assets. The payments are tax-free if they are made directly to a care home and are portable if you decide to move to a different home. Long-term care insurance, where you pay premiums over a lengthy period before you actually need care, is no longer widely available. If you have already taken out one of these policies it should still be honoured. All policies are slightly different. We suggest you speak to an independent financial adviser who specialises in care fees planning (see Useful contacts section). Among the questions to ask are: What are the benefits and for how long will I receive them? What is the maximum amount the insurer will pay out per month? Should I take out capital protection so that the balance of any lump sum is returned to my estate? Are the benefits paid to me so that I can arrange my own care, or paid direct to the care home? Are the benefits protected against inflation? Private medical insurance Private medical insurance is intended to cover you for medical and hospital costs, and is unlikely to cover you for long-term care costs. However, depending on your policy, it may include cover for a limited amount of convalescent care or home nursing, related to your medical needs. You should speak to your insurer about your own policy. All figures correct at August 2013 15
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If the local authority will be paying towards the costs of your care The financial assessment If your local authority assesses you as needing to go into a care home they will tell you the maximum amount they will pay for your care each week. This should be based on your individual care needs. They will then assess your personal finances to work out whether you should contribute towards the costs and, if so, how much (Financial assessment section). The amount you pay is called the resident contribution. The local authority should not generally carry out a financial assessment until a needs assessment has shown that you require care in a care home. The financial assessment should be a detailed calculation based on your full income and capital, not simply the rough value of your capital. If you do have to contribute, the local authority will explain the arrangements. For example, they may pay the care home the whole cost of your care and you pay your contribution to the local authority, or you may pay your contribution to the care home. If you are assessed as needing nursing care, you will also be eligible for Funded Nursing Care (or its equivalents in Scotland and Wales). Your choice of care homes if the local authority is paying Local authorities must make sure that you have a genuine choice over where you live, and should help you to live in the care home of your choice so long as: it appears to be suitable for your assessed needs accommodation is available the home will provide accommodation that satisfies the local authority s usual terms and conditions the home does not cost more than the local authority would normally pay for someone with your assessed needs (but see page 18, Moving to a home that costs more than the local authority will pay) 17
If the local authority is paying for your care, you do not have to move into one of its homes. The local authority should give you information on homes in your area which could meet your care needs, but they will not necessarily be local authority homes. There will also be a range of independent homes which have agreed to provide care at the local authority s agreed rate, or will accept third party contributions if the costs are higher (England and Wales only). However, you do not have to go into a home from this list. Scotland In Scotland, if you are assessed as qualifying for Local Authority funding, then your placement will be arranged through the National Care Home Contract (NCHC). The NCHC has two fixed annual rates, one for residential care and one for nursing care. Additional charges will only be requested if your needs are demonstrably greater than those covered by the NCHC. In this unlikely event, an additional care charge may be applied. The local authority should look at whether the home you want to go to costs more than they would expect to pay for you in another home, taking account of your individual needs. If the home of your choice does not cost more, or there are no suitable cheaper homes, the local authority should pay for you to live there, or allow a third party to pay the difference (England and Wales only). The home would have to be willing to enter a contract with the local authority to care for you at the price agreed. If the local authority says that the home of your choice is too expensive, it must show that your particular needs can be met properly in a less expensive care In Edinburgh, due to the higher costs of providing care, a small additional weekly charge may apply. home. Alternatively a third party, such as a relative, may pay the difference (England and Wales only). Moving to a home that costs more than the local authority will pay If the care home you have chosen is more expensive than the local authority will pay, someone else can pay the difference on your behalf. This could be a relative or an organisation such as a charity or a benevolent fund. This is 18
known as a third party contribution or top up (England and Wales only, see section below). You cannot usually pay this extra contribution yourself, except in very specific circumstances. Most care homes will accept funding from a number of sources. For example, your care could be funded by a mixture of the local authority, your family and a benevolent fund. If you need a more expensive care home because of the type of care your assessment says you need, the local authority must pay the higher cost. For example, people with dementia may need to move to a home with a safe layout and specialist staff. Your assessed needs can also include social and cultural aspects, such as remaining in a close knit community, or being able to practise your religion. Third party contributions The person or organisation who agrees to pay the third party contribution should be aware that they will have to enter into a contract confirming their contribution and will have to show that they are likely to be able to keep up the payments. The payments may increase each year. Moving to a different part of the country When your local authority in England or Wales agrees to fund your care in a care home, you are free to choose a home anywhere in England or Wales or, by special arrangement, Scotland. However, if the home or area is more expensive than the local authority would normally pay for someone with your needs, the issues on the section on the opposite page (Moving to a home that costs more than the local authority will pay), may apply (England and Wales only). Each person should be considered according to their individual needs, so it is important to make sure that your assessment and care plan cover the reasons you want to move to another area. For example, you might want to be near close family, or in a care home that meets your religious needs. If your move to a different area is agreed, the local authority that carried out your assessment will continue to pay for your care. 19
Financial assessment The rules about assessing your contribution towards the costs of your care are issued by the Department of Health, and local authorities must follow this guidance. Capital and income Capital Capital is defined as property, savings or investments you own, inside or outside the UK, and one-off or lump sum payments, such as an inheritance or a maturing investment policy. It will usually include the value of your home, except in some circumstances (see page 23, If someone still lives in your home). It does not generally include personal possessions, such as jewellery or furniture. Income Income is usually defined as payments which are made in respect of a particular period (for example, a month or year) and form part of a regular series of payments. This includes state, occupational and personal pensions, payments from an annuity, and benefits and allowances. Capital is valued at its current market value, less any mortgages or debts secured on it. So if an asset would be difficult or impossible to sell, its market value could be low. If there would be costs associated with selling an asset, 10 percent is deducted from the value until the exact costs are known. 20
Capital limits for help with the costs of care: a reminder (For more details see Local authority or private funding section) Your local authority will pay for the cost of your care if your capital is less than: England 14,250 Scotland 15,500 Wales 23,750 Your local authority will still pay, but not fully, if your capital is between: England 14,250 and 23,250 Scotland 15,500 and 25,250 For every 250 you have over the lower limit they will subtract 1 a week from the money they contribute. You will have to pay the full cost of your accommodation and personal care if your capital is over: England 23,250 Scotland 25,250 Wales 23,750 If your capital is less than the upper limit but your weekly income is more than your care home fees and the personal allowance of 23.90 ( 24.50 in Wales) added together, you will have to pay the full cost. 21
Any income unspent at the end of the period for which it was paid becomes capital. For example, a monthly pension payment counts as income, but at the end of the month the unspent portion becomes part of your capital. If you are contributing to the costs of your care, you may have to contribute all the income you receive, apart from your personal expenses allowance, up to the total of your share of the cost. However, the situation is complicated because there are circumstances where income is treated as capital, and capital is treated as income. For example, income you receive from your capital, such as interest on savings, is ignored as income, but counts as capital from the date you are due to receive it. There are also some types of capital and income which are ignored, or disregarded, for the purposes of the financial assessment. Tariff income If you have capital of between 14,250 and 23,250 (or the equivalents in Scotland and Wales) you will have to contribute towards the costs of your care. The amount is worked out by assuming that for every 250 or part of 250 you have between the lower and upper limits, you have an income of 1 per week. This is called tariff income. Personal expenses allowance You will be able to keep 23.90 a week as personal spending money ( 24.50 in Wales). This is called your personal expenses allowance. The local authority does have discretion to increase your personal expenses allowance, particularly where certain activities or services would contribute significantly to your wellbeing. If you receive the savings credit part of the pension credit, you can also keep up to 5.75 per week from the savings credit for your personal use (see Pensions and benefits section). Couples Only capital and income in your own name will count as belonging to you for the assessment. Joint savings and capital will be assumed to be shared equally, and only half will be counted as belonging to you. If you and the other person believe that this would not be fair, you may be able to make arrangements to reflect the accurate position. Please take independent professional advice before changing your financial arrangements, so that there is no risk of appearing to give 22
away your assets (see page 26, Giving away your assets). If you are both moving into a care home, you will still be assessed as separate individuals, even if you will be sharing a room. This means you each have an upper limit of 23,250 in capital ( 25,250 in Scotland, 23,750 in Wales) before you have to fund the full cost of care yourselves. Pensions For married couples, the local authority will ignore half of any occupational pension, personal pension or annuity so long as you pass at least this amount to your husband or wife, and they are not living with you in the care home. You do not have to do this, and your spouse should consider the impact this could have on any benefits they receive. Unmarried couples need to ask for their personal expenditure allowance to be increased if they want part of their pension to support their partner at home. Local authorities have the discretion to do this. If you live on your own If you own your own home, its value will usually be included as part of your capital. House prices today mean that if you own your home you will probably be above the upper capital limit and will have to pay the full costs of your care. In order to do so, it is possible that you may have to sell your house. The value should be based on the figure for a quick sale, rather than its optimum value. If someone still lives in your home You cannot be forced to sell your house if your husband or wife still lives there. We know many people worry about this, but there are circumstances in which your house is not counted as part of your capital, even if it is in your name. These include the fact that your home is lived in by: your spouse or partner a close relative aged 60 or over a close relative aged under 60 and incapacitated a child under 16 you are responsible for supporting 23
This is called an infinite disregard. Local authorities also have some discretion even if the person who lives there does not fit these categories, for example, someone who has given up their own home to look after you. If you own your home jointly with someone else If you own your home jointly with someone else, the local authority will work out the likely value of your share and count it as part of your capital. However, the value of your share depends on the actual sale price, and your ability to sell it. If the other owner cannot or does not want to sell the house or buy your share, the actual value for the purposes of your assessment might be very little. Please note that the rules differ depending on whether your home is owned jointly or as tenants in common. In some circumstances, the local authority may arrange with you to enter into a legal charge over your home (see opposite). The first 12 weeks The value of your home is not counted for the first 12 weeks after you move into a care home permanently. This is to give you time to sell your home, or so that you can go into a care home to convalesce before returning home, or for a trial period. Your contribution to the costs for those 12 weeks will be based on your capital excluding the value of your home. This is called the three month property disregard. Deferred payments and legal charges Your local authority may allow you to enter into a deferred payment agreement with it. This arrangement may be used while your house is for sale. So long as you have capital of less than 23,250 (or the equivalents in Scotland and Wales) apart from your home, and do not have enough income to pay the care home fees, the local authority may effectively lend you the money to pay for your care. The money is repaid from the eventual sale of your house either when you sell it, or after your death. Please note that the local authority is not under any obligation to enter into a deferred payment agreement. While there are some advantages, including the recent growth in property values, remember that you would be building up a debt that must be repaid at some point. This arrangement may also affect any benefits you are receiving. 24
If the local authority arranges a place for you in a care home, and you are unwilling or unable to make your contribution, perhaps because you have few savings other than your home, or you cannot or will not sell your home, it may be able to create a legal charge on your property (called a charging order in Scotland). This means that it can make a claim on the value of your property and recover the money owed to it when the home is sold. Going into a care home at short notice Although the local authority will normally carry out a financial assessment before you move into a care home, it has eight weeks to do so. If you have to move into a care home at short notice it can charge you a reasonable rate until the assessment is carried out. The rate will then be adjusted, and any under-payments or over-payments will be corrected. Giving away your assets Please note that you should not knowingly give away your assets, such as your savings or your home, or sell them at less than their true value, in order to qualify for contributions to the cost of your care. This is called deliberate deprivation. There are no set rules about when someone would be considered to have deliberately deprived themselves of assets. The local authority can consider both timing and motive, and if it believes you have deliberately deprived yourself of assets, it can still assess you as having notional capital. It can then assess your contribution to the cost of your care as if you still owned the asset. We strongly recommend that you take professional advice before giving away or transferring any assets. Also bear in mind that if you give away your capital, it could reduce your ability to use it to fund the care you choose, such as moving to a more expensive care home. 25
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Pensions and benefits Please note that the following information can only be a broad outline of the situation, and you should take advice about your personal circumstances. The most important thing is to let the office(s) that pay your benefits know that you are moving into a care home. The impact on benefits can be different depending on whether your stay in a care home is temporary or permanent. Below, we only discuss permanent stays, when the care home becomes your main place of residence. If you go into a home on a temporary or trial basis and then decide to stay permanently, you are generally considered a permanent resident from the date you decide to stay. Contributing to the costs of your care If you have more than 14,250 in capital (or the equivalent figure in Scotland or Wales) you will be expected to contribute your income towards your care home fees, even if the local authority is contributing to the cost of your care. This includes tariff income, pensions and benefits, with a few specific exceptions. You will be able to keep a personal expenses allowance of 23.90 each week ( 24.50 in Wales) to spend yourself. Pensions Going into a care home will not affect your right to any state, occupational or private pensions. However, the income they provide may affect how much you have to contribute to the costs of your care. State benefits which you currently receive Moving into a care home can affect the benefits you receive, but you may still be able to claim some. 27
Pension credit You can claim pension credit if you live in a care home. There are two parts to pension credit. The guarantee credit is for people over 60, and tops up your income to a set minimum amount each week. The savings credit is an extra amount for people over 65 who have some savings for their retirement. You may be able to get the savings credit even if you do not qualify for the guarantee credit, or you may be eligible for both. For people living permanently in a care home, the first 10,000 of capital will be ignored. For every 500 over that amount, you will be assumed to have an income of 1 a week. (Confusingly, these amounts are different from those used to assess whether you should contribute to the costs of your care, and are different from the amounts that affect pension credit for people living in the community). Attendance allowance and disability living allowance Attendance allowance and the care component of disability living allowance will usually stop after four weeks if your local authority: arranges for your care in a local authority care home, or is contributing to the cost of care in an independently run care home If you are paying for your own care your attendance allowance or disability living allowance care component will usually continue. (Please note that different rules apply in Scotland because of the contribution towards the costs of personal care). Moving into a care home will not normally affect the mobility component of disability living allowance, but it may be affected if the NHS arranges your care. Carer s allowance If someone gets carer s allowance for looking after you, it will stop if your attendance allowance or disability living allowance care component stop. Housing benefit and council tax benefit If you are moving into a care home permanently, you cannot normally get housing benefit and council tax benefit. If you are part of a couple and previously claimed these benefits in your name, your partner should now claim in their own name. 28
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Useful contacts These organisations offer advice on paying for long-term care and related issues, such as benefits. They are all free to approach for information and details of the services they offer. Many provide information and literature free of charge, but please check whether there is any cost if you decide to use their services. 30
Age UK Advice line 0800 169 6565 www.ageuk.org.uk Advice, information and fact sheets. Attendance Allowance, Disability Living Allowance Helpline Helpline: 08457 123 456 (local rates) www.direct.gov.uk/en/disabledpeople/financialsupport For enquiries about disability living allowance, attendance allowance and other disability benefits. Benefits Enquiry Line Freephone 0800 88 22 00 (Monday to Friday 8.30am to 6.30pm, Saturday 9am to 1pm) Email bel-customer-services@dwp.gsi.gov.uk www.direct.gov.uk/disability-money Warbreck House, Warbreck, Hill Road, Blackpool FY2 OYE Free benefits helpline for people with disabilities or sickness and their carers. Advice, leaflets and forms are available, but they do not have access to your personal records and cannot give personal advice. Bupa Care Homes Telephone 0800 00 10 10 (lines open 24 hours a day, 7 days a week) www.bupa.co.uk/care-homes www.bupa.co.uk/funding-indicator to find out if you are eligible for financial assistance Bridge House, Outwood Lane, Horsforth, Leeds LS18 4UP Details of over 300 Bupa care homes in England, Scotland and Wales. Department for Work and Pensions (DWP) www.dwp.gov.uk Provides information on services and benefits, leaflets and claim forms can be downloaded from this website. 31
Direct Payments 08701 555 455 www.dh.gov.uk/publications Email dh@prolog.uk.com Eldercare Solutions Ltd Freephone 0800 082 1155 Email advice@eldercaregroup.co.uk www.eldercare-solutions.co.uk Suite 4, Titmore Court, Titmore Green, Little Wymondley, Herts, SG4 7JT Eldercare Solutions Ltd advises on financial solutions to meet the cost of care including advice about selling, renting or releasing cash from a property. Elderly Accommodation Counsel Telephone 0800 377 7070 Email info@firststopadvice.org.uk www.housingcare.org EAC is a charity, completely independent of any provider of housing or care services. The website is designed to help you explore options and make decisions about your housing, support and care needs in later life. 32
Financial Ombudsman service Enquiry line: 0800 023 4567 (free from a landline telephone) 0300 123 9 123 (free for mobile phone users who pay a monthly charge for calls to numbers beginning in 01 or 02) www.financial-ombudsman.org.uk A free service, set up by law to settle financial disputes. Including pawn broking, pensions, car insurance and elderly consumers mis-sold investments. Grace Consulting 01483 203 066 www.graceconsulting.co.uk Orchard House, Albury, Guildford, Surrey GU5 9AG Offers independent expert advice to guide clients and their families through the large range of care options now available, and offers an assessment of needs service. Health Literature Line 020 7210 4850 www.dh.gov.uk Leaflets from the Department of Health, including NHS Funding Care in Nursing Homes. Independent Age 0845 262 1863 www.independentage.org advice@independentage.org Free and impartial advice on home care, care homes, NHS services, housing and other issues. Lines are open Monday to Friday from 10am - 4pm. Turn 2 Us 0808 802 2000 www.turn2us.org.uk Helps people in financial need gain access to welfare benefits, charitable grants and other financial help. 33
The Pension Service 0800 99 1234 (lines open 8am to 8pm, Monday to Friday) www.dwp.gov.uk/thepensionservice Help and advice from the government for pensioners in England and Wales. Relatives and Residents Association Advice line 020 7359 8136 (lines open 9.30am to 4.30pm, Monday to Friday) www.relres.org Email info@relres.org Offers practical and emotional support to relatives whose family member is going into elderly care. 34
Bupa Care Homes has used all reasonable care and skill in compiling the content of this document but makes no warranty as to the accuracy of any information in this document and cannot accept liability for any errors or omissions, except in the case of fraud or fraudulent misrepresentation. Bupa Care Homes shall not be liable to any person for any loss or damage that may arise from the use of the information contained in this document. The information contained in any such material is not intended nor implied to be a substitute for professional advice. These exclusions of liability will not apply to any damages arising from the death or personal injury caused by the negligence of Bupa Care Homes or any of its employees or agents. This notice is governed by and construed in accordance with English law. If any part of this notice and disclaimer is deemed unlawful, void or for any reason unenforceable then that part will be deemed severable and will not affect the validity and enforceability of the remaining parts. Bupa Care Homes is the owner of the copyright rights in this document, except where specifically stated otherwise, including content, data, design, graphics, text and images. Bupa Care Homes is the owner of all trademarks, service marks, trade names, logos and devices which appear in this document, whether registered or unregistered, except where specifically stated otherwise. Bupa Care Homes 2003. Published by Bupa Care Homes, Bridge House, Outwood Lane, Leeds LS18 4UP. All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing it in a medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission for the copyright owner, except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, W1P 9HE. Applications for the copyright owner s written permission to reproduce any part of this publication should be addressed to the publisher. Warning: The doing of any authorised act in relation to a copyright work may result in both a civil claim for damages and criminal prosecution. No responsibility for loss occasioned to any person acting or refraining from action as a result of material in this publication can be accepted by the authors or the publishers. Bupa Care Homes (ANS) Limited No. 1960990 Belmont Care Limited No. 2509860 Bupa Care Homes (AKW) Limited No. 4122364 Bupa Care Homes (Bedfordshire Limited) Limited No. 3333791 Bupa Care Homes (BNH) Limited No. 2079932 Bupa Care Homes (CFCHomes) Limited No. 2006738 Bupa Care Homes (CFHCare) Limited No. 2741070 Bupa Care Homes (GL) Limited No. 1587972 Bupa Care Homes (Partnerships) Limited No. 2216429 Bupa Care Homes (BNHP) Limited No. 3183275 Registered in England and Wales Registered office Bridge House, Outwood Lane, Horsforth, Leeds LS18 4UP Bupa Care Homes (Carrick) Limited No. SC151487 Registered Office: 39 Victoria Road, Barrhead, Glasgow G78 1NQ Bupa Care Homes is regulated in accordance with the Care Standards Act 2002 and Regulation of Care (Scotland) Act 2001. 35
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