Will the Council pay?
The Care Act 2014 is the legal framework for Social Care in England. It is supported by the Care and Support Regulations and Statutory Guidance and came into force on 1st April 2015.
Social Care reform
Social Care reforms including a Lifetime Cap on Care costs of £86’000 have been proposed with a change in the means test funding levels to be implemented under the Care Act 2014 from Oct 2023, a Health and Social Care Levy will mean an increase in National Insurance contributions from April 2022. Read More in our Lifetime Cap on Care Fees Article
Care and Support needs assessment
National criteria for assessing care and support needs were introduced under the Care Act 2014. A care needs assessment (and an assessment of a Carers needs) are free of charge, regardless of who is paying for the care.
Once assessed with an eligible care need a financial assessment will determine any client and/or Local Authority contribution.
The care and support planning process will determine what type of care will best suit the person’s needs and how those needs are being or to be met. The personal budget is the cost to the local authority of meeting the person’s needs and not necessarily the actual cost of privately arranged care and support. For people who are not ‘self-funding’ their care, a Personal Budget may be paid as a Direct Payment to enable choice of provider rather than a service that is commissioned by the Local Authority.
A Local Authority has the discretion to choose whether or not to charge following a care needs assessment but apart from some services which must be provided for free, ongoing Adult Social Care (unlike NHS services) is usually means tested. When a Local Authority charges for care and support services they must follow the Care and Support (Charging and Assessment of Resources) regulations and have regard to the Care and Support Statutory Guidance.
Financial Assessment – common elements
The following rules apply to financial assessment for both residential care and care at home;
Residents with over £23,250 savings/capital will meet the full costs of their care and are considered able to pay for their own care in full.
Residents with between £14,250 and £23,250 will make a contribution from their savings/capital as a tariff income of £1.00 for every £250 or part of, a contribution from income will also be assessed
Residents with Savings/Capital below £14,250 will not make a contribution from capital, but a contribution from income will be assessed.
Care at home
Because a person who receives care and support outside a care home will need to pay their daily living costs charging rules ensure they have enough money to meet these costs. For care at home, after charging a person must be left with the appropriate Minimum Income Guarantee (MIG).
Care in a Care/Nursing home
You will retain a Personal Expenses Allowance, currently £25.65 per week. If the Local Authority allows you to defer paying for your care against the value of a property, used as security (Deferred Payment Agreement), you may keep up to £144 per week. Please ask us to explain these rules to you as they do not apply to everyone who owns a house.
Remember it is an individual’s care need being assessed and so an individual’s ability to contribute towards the cost that will be financially assessed, any joint savings will be halved a financial assessment.
If you give away an asset or do not claim an income or benefit entitlement available to you and the Local Authority and/or DWP decide that this was done with a deliberate intention to avoid paying for your care or access a benefit entitlement then they may treat you as still owning or having it and the financial assessment can include the amount as notional income/capital.
If you would like some help to understand how a Local Authority assessment works, how they can help or charge for care please call us 0800 999 2 27 or get in touch.
The simple answer is why are you intending to make the gift? If it is to avoid paying for care then that asset may still be included in a financial assessment and you may be treated as a self-funder. If you would like some help to understand the Local Authority Charging system please get in touch
If you are making a trust specifically to avoid paying for care then that asset may still be included in a financial assessment and you may be treated as a 'self-funder'. The Local Authority have 'Deprivation of Asset' rules which may or may not apply to a gift, depending on the type of asset, timing and intent of the gift. Please get in touch if you would like to understand how this may affect you.
Often a property will be disregarded from a financial assessment and it is important to get advice before selling your main or only asset. Please get in touch if you would like to understand your Care and Housing options.
If you don't agree with a decision the first action would be to ask them to look at the decision again. Get as much evidence as possible (and relevant) and if you would like some advice before challenging a decision please get in touch
Social Care applies throughout the UK, the main differences are how you are assessed as eligible and how much any responsible authority will contribute.
In England, Wales and Scotland it is the Local Authority that is responsible for 'Social Care' . The funding levels are different but all will require an assessment of eligible care needs.
|14’250 - £23’250||£18'000 - £28’750
Free personal and nursing care for those assessed with eligible needs
In Scotland permanent care costs are split into Care, Nursing and Hotel costs. The Hotel cost is means tested.
£50'000 (Residential care)
£100 cap for Domiciliary care
|£14’250 - £23’250|