Paying for Care at Home
The financial assessment
If your social services assessment assesses you as needing care in your own home, a care plan will be drawn up and the local authority 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.
Not all services are charged –services of an occupational therapists and day centre visits are often free of charge, although transport to and from day centres would normally be charged.
Means-testing
In assessing your financial circumstances if you have more than £23,250 (England 2010/11) 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 2010/11), your income and any savings above the lower capital threshold (£14,000 England 2010/11) will be assessed but you must be left with at least the basic amount of Pension Credit plus 25%.
Capital between the Lower and Upper Capital Thresholds (£14,000 and £23,250 England 2010/11) 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 2010/11) 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.