Financial Guidance for Entering a Care Home
What will it cost to move into a care home?
The cost of staying in a care home varies. You will be required
to contribute to the cost whether your stay is temporary or
permanent, including any time when you are away from the home but
your bed is kept for you.
The exact amount you will pay depends on your income, savings and
in the case of permanent residents, the value of your property if
you have any. Since 1 July 2002, those over 65 can apply for free
personal and/or nursing care.
Your lawyer, financial adviser or the Citizens
Advice Bureau will be able to advise you on financial matters.
Perth & Kinross Council also has a dedicated Welfare Rights Service who can assist
you. They can be contacted on 01738 476900.
Financial Assessment
When it has been identified that you need to receive care in a
care home setting we will contact you or your representative to
arrange a financial assessment. A Financial Assessment Officer
will come to visit you to gather information regarding your
finances.
You will be asked to show paperwork relating to your:
- Income - from benefits, pensions, trust funds etc,
- Savings - bank/building society statements,
- Any other capital.
We will take photographs of these for our records. Wherever
possible, at the time of the visit you will be given an indication
of how much you will be expected to pay. The actual amount
will be confirmed to you in writing.
How much will I have to pay?
If you have savings of less than £14,500 then you will pay
most of your state pension, all of any other pension and all your
other benefits except mobility allowance, towards the cost. For
Short Breaks in a care home your Attendance Allowance or Disability
Living Allowance is not included.
If you have a private or work pension and have a spouse that
continues to live at home, you will only pay 50% of the pension
towards the cost.
Everyone retains a weekly personal allowance to spend as they
choose on items of a personal nature, including clothes. The
current weekly personal allowance is £22.60.
Tariff Income
If you have savings or capital over £14,500 but less than
£23,500 we will ask you to pay, in addition to your pensions
and state benefits, £1 per week for every £250, or part
thereof, above £14,500.
Self-Funder
If you have capital over £23,500 you will be a Self
Funding Resident. Capital includes any savings, investments
and property that you own. The value of your property will not
normally be included when calculating what you will pay for a short
break.
The contract for your care will be between you and the care home
that you choose. Perth & Kinross Council will pay a Free
Personal and/or Nursing Care payment to the home if you have been
assessed by us as requiring this care.
You are entitled to ask for a financial assessment at any time but
when your capital is nearing or below £23,500 you should
contact us and we will carry out another financial assessment.
Will I have to sell my property?
If you are thinking about entering a care home and own a
property it is probable that you will be a self funding resident as
the value of the property is likely to be in excess of
£23,500. For the first 12 weeks of entering a care home we
will not include the value of the property in calculating what you
will pay towards your care. This means that if your capital,
excluding the value of the property, is below £23,500 you
will pay less for this period. This is to allow you time to
decide what you want to do. You will never be forced to sell
your home to pay for your care.
If you do sell the property within the first 12 weeks then the
proceeds will be included in your total capital from the date of
sale. If this then takes your capital above £23,500 you
will be a self funding resident.
If after 12 weeks you choose not to sell the property or have been
unable to sell it, we will include the value of the property when
calculating what you will pay and you will be a self funding
resident. If you are unable to pay the fees from your
accessible capital you can request to enter into an Interim Funding
Agreement with us.
If your spouse, partner or other specified person for whom you have
a responsibility continues to live in the house, and ownership of
the property remains unchanged, its value is not included. Where
you may have previously owned property we have the right to
consider the effect of this on your ability to pay for
care. Your individual circumstances will be considered and
discussed fully with you.
Hospital admissions from care home placement
Residents who are admitted on a short-term basis to hospital and
who have had their bed kept for them, awaiting their return to the
care home, are expected to continue to meet their assessed
charge.
Making gifts
From the time you begin to need or consider care, the law does
not allow you to give away sums of money, for example, to a
relative or a charity, in order to pay a lower charge for your
accommodation. We have the right to continue to base your charge on
the amount of money you had at the time you first needed to
consider care. Should you wish to give away, after that point, sums
of money which will reduce your savings you should seek advice from
us before taking any action.
Every year you will be free to give small gifts, for example, to
immediate family members for birthday presents or gifts to
charities, from your capital or income after you have met the costs
of your care.
How will I pay the bill for the care home?
Before moving, you will be asked to agree how you will pay your
share to the care home. Each care home has it own procedure for
this and will discuss it with you fully. Once you have agreed, this
will be written into a contract, which you will be required to
sign.
Never sign anything until you are completely satisfied with every
detail. If in doubt, always ask for help from a lawyer or some
other professional person you know and trust.
You may wish to continue to handle your own money. If not, you can
authorise someone to be your agent to deal with your
finances. You can find more information on The Office of
Public Guardian website: http://www.publicguardian.gov.uk.
What money will I have left to spend?
A certain amount of your pension or allowance is yours to buy
personal items like clothes, shoes and toiletries. The exact amount
is decided by Parliament and usually revised each year to take
account of the rise in prices (currently £22.60 per
week).
Additional service charges and extras
A care home can make a charge for additional services and goods
provided these have been agreed with the Council. Details of the
agreed additional charges can be found in the care home's
introductory brochure. A care home may also charge for extras not
included in the service charge if you agree to receive these.
What if my financial circumstances change?
If your capital or income goes up you may have to pay a greater
share of the costs of your care. If your capital or income reduces
you will pay less. In either of these circumstances you must tell
us.
We will reassess what you will pay each year and notify you in
writing of any changes.
If you have chosen to live in a home that is more expensive than we
would normally pay and your circumstances change, or the people or
the organisation helping to fund your care can no longer help, we
will need to reassess your care needs. If you need a long term home
we will help you find somewhere where the costs can be met us.
Note:
The above information is general guidance only and each case
will be reviewed on an individual basis taking your circumstances
into account. If you want to discuss anything please call us
on 01738 476925 write to Charging Team, Housing & Community
Care, Pullar House
35 Kinnoull Street PERTH PH1 5GD or send us an e-mail at: communitycare@pkc.gov.uk
