Frequently asked questions about Care Fees
Helping you understand fact from fiction
There are many misconceptions about Care Fees and Paying For Care.
There’s a general assumption in the UK that when we grow old we have to pay for Long-Term Care out of our own pockets. Politicians do little to change that assumption, budget-holders in the NHS and local authorities must love it, and yet it can devastate the lives of elderly people and their families.
The following FAQs will help clarify some of the most important points. When it comes to financial matters, always take independent financial advice, as the decisions you make about your Care may affect other aspects of your finances or Benefits.
If I have savings or own a house, do I automatically have to pay for Care?
No. Before you’re means-tested for anything, the NHS is obliged to assess your Health Needs, to see if you’re eligible for fully-funded NHS Care. (This is called NHS Continuing Healthcare.) The local authority should not be involved in any decisions about money until this has been done. It is incorrect to assume that just because you have savings or other assets you have to pay for Care.
Can the local authority ask me about my finances once they know I need Care?
If you have Health Needs, the local authority has no business asking for information about your financial situation before a proper Care Assessment for Free NHS Continuing Healthcare has been done by the NHS – and you have been given the opportunity to appeal any decision that denies you Free NHS Care.
This is about health first and foremost, not money. Ask the local authority to show you when and how exactly you will be assessed for Health Needs. If a local authority is trying to get you to pay for Care (through a Section 47 assessment) without the NHS having assessed you, they are breaching clear guidelines.
Do I have to sell my home to pay for Care?
Not necessarily. If an NHS assessment shows that you do need to pay for your own care, you still don’t have to sell your house. If you want to keep it as an investment and perhaps rent it out, you can negotiate a Deferred Payment Arrangement with the local authority and they will pay your Care Fees interest-free for the moment. They recoup the costs from you (or from your estate) when the house is finally sold. (This question is relevant if you’re going into a Care Home.)
Will my family have to move out of my house so it can be sold to pay for Care?
Not necessarily. Your property cannot be taken into consideration in any means-testing if:
- your partner/spouse still lives there
- another relative over 60 lives there
- a younger relative still lives there who is incapacitated
- your former partner (divorced or estranged) still lives there and is a lone parent
- a dependant under 16 lives there
- a relative over 60 lives there (or in some circumstances a friend who has been caring for you for some time and for whom the property has become their home)
Will the value of my property be taken into account in means-testing?
Not necessarily. The value of your property should be disregarded for the first 12 weeks of Full-Time Care. This means it should be excluded from any calculations about Care Fees. However, if you sell the property during these 12 weeks, the proceeds from the sale are considered fair game by the local authority from the moment you have them – and the 12 week property disregard ceases.
After the 12 weeks, if you choose not to sell your house AND if the value of your other savings/assets is below the current savings thresholds, the local authority will pay for your care. (See the point above about a Deferred Payment Arrangement.)
If you have been in Care for a while, paying Care Fees and then you run out of money to pay the fees, but still own a property, you can apply to the local authority for financial assistance if you don’t want to sell the house. The local authority is obliged to apply the 12-week property disregard from the time you ask for assistance.
Always remember though that if your Care is primarily for Health Needs, the NHS has a duty to provide NHS Continuing Healthcare funding, which covers all the costs of your Care.
Can I reclaim retrospectively for NHS Continuing Healthcare?
Yes. If you believe you should have been funded by the NHS before now, you can ask for a retrospective review of your Health Needs. Similarly, if you had a relative in Care who has now died, you can claim retrospectively on behalf of his/her estate for the same reason.
Contact the NHS Continuing Care Department at your relative’s local Primary Care Trust (PCT).
Do I have to cash in all my investments to pay for Care?
No. You can keep hold of all investment bonds with an element of life cover.
Do I have to pay for physiotherapy or other therapies in a care home?
If you’ve been assessed as needing such therapies because of your Health Needs, you should not have to pay for them. They should be provided as part of free NHS Continuing Healthcare.
Can all financial advisers help with Long-Term Care matters?
No. Be careful. You could end up buying a Long-Term Care product, such as an annuity, without the adviser taking account of the NHS’s potential duty to pay.
Ask the financial adviser about his/her specific qualifications, e.g. CF8 and Later Life Adviser Accreditation. Always take professional – and independant – advice from an adviser who understands the specific financial issues surrounding Elderly Care, including NHS Continuing Healthcare.
