Funding for long term care is an issue which has long been viewed by many as unfair with over 40% of current care home residents meeting their entire costs from personal income and capital. Expectations placed upon those with assets of £23,000 or more are considered wholly unreasonable by many and practices can vary from region to region in England.

Summary of the current system

• Anyone with total assets of £23,000 or more (including owners of an unoccupied property) has to meet care costs in their entirety whilst those with assets of less than £14,000 receive the same care without cost.
• Average care home fees in England are £627 per week,  nursing home fees are greater still.
• Inconsistency of means-testing in different regions within England.
• Lack of support for those seeking care provision in their own home.
• As we live longer the current scheme will come under increased pressure.

The Department of Health published its Green Paper on 14th July 2009 outlining its proposals for a new care and support system which is fair, simple and affordable for everyone, read on for a brief summary. If funding for care at home or in a care or nursing home may be an issue for you or your family, speak to EBS for professional, independent financial advice.

Key proposals within ‘Shaping the Future of Care Together’

Changes in funding methods with 3 options:

1. Partnership:  The state guarantees a known level of contribution for everyone with the individual funding any balance of costs on a means-tested basis.
2. Insurance: Similar to the Partnership scheme with the addition of a Government created insurance scheme to help individuals fund their care requirements without having to sell assets such as unoccupied property.
3. Comprehensive: Individuals would pay a lump sum or instalments totalling £20,000 - £25,000 at retirement into a social fund designed to cover care costs (not accommodation costs). A further variation may include deduction of the contribution from the estate upon death.

It should be borne in mind that any state-funded care will reduce or eliminate the choice of care or nursing home. For total freedom of choice, the individual should expect to pay accommodation costs.

Due to its complexity, advice in this area is restricted to individuals who have passed the specialist examination in Long Term Care (CF8). EBS has two such individuals and a third studying, so we are well-equipped to guide you through the process. A good starting-point is our recent Long Term Care newsletter which was published before the Green Paper.
All information correct at time of publication.

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