At Sydney Mitchell, we pride ourselves ensuring that you receive the support you need without unnecessary stress. We understand how dauting the healthcare system can be and are committed to simplifying the process for you alleviating any financial concerns by addressing issues right from the start.
What are the requirements?
Where a person’s ‘assessable’ assets fall below the figure of £23,250, the Local Authority should step in to assist with funding care provision.
In dealing with this calculation there are certain assets that cannot be taken into account by the local authority and it is essential that advice is taken as
to what should or should not be taken into account so that this calculation is undertaken correctly.
People incorrectly assume that the local authority will simply fund the entire cost of their care once their capital assets have fallen below this limit. This is not the case. The person in care will be expected to contribute their entire income, less a nominal account, called the personal allowance. There is in fact a lower limit of £14,250 and a tariff will also be added to the person’s expected contribution on a proportional basis in between the upper and lower threasholds. In dealing with the calculation, the local authority will decide a maximum amount that they believe a particular level of care in a particular care home is worth. This is often not in line with what the care home will charge.
An example
| Care Home charge | 1000.00 | per week |
| Local Authority maximum payment for that particular care | 650.00 | per week |
| Balance outstanding (to be paid as third party top up) | 350.00 | per week |
This £350.00 difference between what the care home expects to be paid and what the Local Authority has set as its limit will need to be paid by a third party (often the resident’s family) and is not permitted to be funded by the resident personally. This is to ensure that families who wish for their relative to reside in a more luxurious or costly care home, are able to do so, without the local authority being liable for the additional ‘hotel’ costs.
In the calculation shown above the local authority’s maximum payment is then further split. The resident will be entitled to retain a small living allowance of approximately £30.65 per week but all other income will be used toward the cost of care. The resident will be expected to pay all the income they receive (including state pension, private pension etc.) as the ‘resident’s contribution’. The local authority will then pay the difference between that resident’s contribution and the maximum amount that the Local Authority feel that the room is worth (in our example £650.00).
| Local Authority Maximum Limit | 650.00 | per week | |||
| Residents income | 280.00 | per week | |||
| Less: living allowance | 30.65 | per week | |||
| Resident’s contribution | 249.35.00 per week | ||||
| Actual amount paid by Local Authority | 400.65 per week |
As you can see often this means that the local authority contributes a relatively minor sum in comparison to the resident and the third party. Clearly assessments will not always be as simple in practice and can often involve complex calculations and exemptions which are not readily explained. Advice should be sought at the earliest opportunity and this is usually when the resident or their family are presented with a financial assessment to complete.
How we can help you?
We will be able to provide guidance and advice, often at a time of crisis for you and your family by assessing your current situation and steer you through the maze of conflicting information you are likely to be receiving.
We can provide clarity and peace of mind by representing you and your relative at assessments and providing support and guidance for you throughout the complex and often stressful process ensuring that you or your relative’s case is put forward in the best way possible to ensure they receive any funding to which they may be entitled.
Talk to our experienced Private Client team on 0121 746 3300 or complete our online enquiry form at the top of the page.
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