Care Home Fees: What Could It Cost You?

Proposed Government changes to elderly care home fees in England have been misleading and could still cost people their home. Originally it was suggested that nobody would ever have to pay for care home costs, but Labour claims the new proposal is deliberately misleading.

At present, anybody entering a care home would have to sell their assets, or use their own money, to pay for their care. However, if a person can’t afford the care then the Government will subsidise the same standard of care. This means many people are being forced to sell their property, while other people in society get the same care, but for free.

The New Proposed Cost of Care

The proposed cost of care under the Conservative Government would mean a cap of £75,000 on the cost of care from 2017. This means the maximum cost of care anybody could be asked to make towards care home fees is £75,000. Often, people in retirement will only have their house as an asset, but this could mean using the property to pay for a proportion of the care.

Within the new proposal, it was thought the Government would not require the money until the person had died. However, for wealthier people that is not the case. For most people, the Government will wait until the person has died then take their share of the money. If you’re in the “wealthy” category then the Government would expect the money upfront.

The new system will also mean that the £75,000 is solely for care. So there will be additional costs for the elderly resident, such as for food, gas/ electricity and accommodation. This is estimated to cost £12,000 per annum.

Care Home Fees and Inheritance

From 2016, people with more than £23,250 in the bank will be required to pay their care home fees upfront. This means they cannot defer payment.

People who can’t afford their own care will continue to get free care home support. Anybody with assets of £123,00
0 or more will be forced to pay for their own care, up to the value of £75,000.

Care home fees don’t consider the impact of a person’s inheritance. In the end, what’s left is split according as determined by the will. However, for many people, a large percentage of any inheritance will go towards paying for care home fees. It doesn’t have to be this way.

Our qualified financial advisors can help you keep your fair share of your money and ensure your money is passed onto your family as you intended. This is achieved by writing your assets into Trust and will guarantee your property can’t be used to pay for care home fees, both today or with the new Government changes in 2016.

To discuss how we can help you maximise your pension, please get in touch and we’ll be glad to help.