This is a continuation of the previous blog entitled “DILNOT UPDATE” on the 5th March 2013.
The devil is in the detail of the Government’s proposals on long-term care funding. That must be why they need four years to work it out, which is why nothing will come into effect until 2017.
Here are some of the detailed questions:-
- What counts as care?
First of all, it won’t be all care. It won’t be care you want, it will be the care Social Services think you should have. So the idea of “personalised care” has gone out of the window, before it even got established. Domiciliary care, i.e. care in your own home, is unlikely to qualify except where it is cheaper than residential care and then only for “critical or substantial” cases.
- Will it cover all residential care costs?
Almost certainly not, because the costs will be limited to the level defined by the local Social Services. Many homes charge more than the basic level and you will have to pay the rest yourself. So don’t expect a room with a view or a balcony if you can’t pay the higher charges.
- What about accommodation costs?
In future you will have to pay these yourself, or presumably with housing benefit if you qualify. That is around £12,000 a year, which in theory you are already paying in your current home.
- So what will it cost?
The exclusion of accommodation costs presumably means that care costs will reduce. If residential care currently costs around £40,000 a year, then minus £12,000 for accommodation, care should come down to £28,000 per year which means the £75,000 cap will require you to pay your own care costs for nearly three years. If you add back the accommodation costs you have to pay yourself, then over three years will need around £111,000 – more if you stay in a better quality home.
If you’re still alive after three years in residential care,— which most people arn’t, —it’s only then that the Government will start to pay. Unless of course your assets sink below £125,000, in which case a tapered level of state funding for care will be offered to you.
…………TO BE CONTINUED