The State and Long Term Care

The popular conception of being looked after from the cradle to the grave by the NHS took a very rapid and terminal turn for the worse back in 1993, when the Community Care Act 1990 came into force. This introduced some big changes so that the NHS would only be responsible for the nursing care of people who are unable to look after themselves in the long term. The burden of all other care issues passed to the individual local authority and this is only for people who qualify for help after being “means tested”. Broadly speaking, if you have assets (and this can include the value of your house!) above a very modest level, you will be expected to use your money up first before any help will be forthcoming.

Long Term Care is required when people are unable to carry out what are known as their “activities of daily living” without assistance. This may happen through illness, injury or just old age. It can also take many forms, from help getting up and going to bed in their own home, through to having to be cared for full-time in a residential care home.

It is one of the most complicated areas to understand and this isn’t helped by there being different rules for Wales and Scotland. In addition, each individual local authority may have their own priorities and budgets they have to balance, so getting expert help is very important. At Ashwood Law, we have advisers who have specially qualified in this area and can help you through the minefield of all the different rules and regulations involved in care costs.

As explained it is a very complicated area but as a starting point there are a few simple basics about the means test. (To keep things simple the following only apply to England).

If you have assets greater than £23,250* you won’t qualify for any help.
If you have assets of less than £14,250* you will qualify for full help.
Anything in the middle and you will be on a sliding scale depending on your income.
*(Figures correct at 2010/11)

In addition, if you do qualify for help, you may forfeit some or all of your income and this can include private pensions as well as state benefits. You will be entitled to keep a little bit of “pocket money” for personal spending.

You are not allowed to give away your assets in order to get help. This is called “deliberate deprivation” and because local authorities are very keen to minimise costs, they look very closely at this sort of thing.

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