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From April 8th 2002 there have been some important changes to the following areas of long term care funding
• Preserved rights for Income Support and Minimum Income Guarante
• The Residential Allowance
• Part III accommodation rates
• Attendance Allowance and Disability Living Allowance for personal care
Go to Additional Information for Care Home Owners and Associations
Since April 1993, local authorities have been responsible for assessing, arranging and funding a personÁs care needs. (As with Income Support, any help local authorities give takes account of a clientÁs income and capital). A new rate of Income Support, the Residential Allowance, was introduced from the same date for people moving into independent sector care homes run by private or voluntary organizations. People already living in an independent sector care home in April 1993, were given preserved rights to a higher rate of Income Support to fund their care. Care assessment and funding responsibilities for these people were not given to local authorities. People living in local authority run residential accommodation which provides board are paid the Part III accommodation rate of Income Support. This is generally a lower amount paid at the rate of basic state Retirement Pension.
Until April 2002, the Benefits Agency supported customers in residential care and nursing homes in one of three ways:
• preserved rights for customers living in homes before April 1993
• the Residential Allowance for normal Income Support, Minimum Income Guarantee,and a few JobseekerÁs Allowance Income Based customers in independent sector homes
• the Part III rate for people in local authority homes
Preserved Rights ended on 7 April 2002. Local authorities now take responsibility for arranging the care, and funding of care, of customers who had preserved rights. A new amount of benefit will be worked for people with preserved rights, using normal Income Support or Minimum Income Guarantee allowances and premiums. (Minimum Income Guarantee is paid as Income Support). Money that would have been spent on preserved rights of Income Support and Minimum Income Guarantee, is now given to Local Authorities to help with their funding responsibilities. They also get money to help meet the shortfalls between what some preserved rights customers get in benefits, and the fees care homes are charging them.
Customers getting the Residential Allowance or Part III accommodation rates on 8 April 2002 continue to get them as long as they reside in the home - disregarding any periods of temporary absence - or until their claim ends. If they claim again from a care or nursing home they will get normal Income Support or Minimum Income Guarantee allowances and premiums.
Since 8 April 2002 all new customers going into residential care or nursing homes get normal Income Support or Minimum Income Guarantee allowances and premiums.
Current savings rules will not change. If someone is claiming Income Support or Minimum Income Guarantee, savings over £10,000 affect the amount they can get. People with over £16,000 usually cannot get these benefits.
For someone asking the local authority for financial help towards their care, the amount they can get is affected if they have more than £11,500. People with savings over £18,500 usually cannot get help from the Local Authority.
Changes to Attendance Allowance (AA) and Disability Living Allowance (DLA) for personal care from 8 April 2002
If someone is in a care home funded by the local authority, AA or DLA for personal care usually stops after 28 days. This is because the local authority provides equivalent support. From 8 April 2002, AA or DLA for personal care also stops after 28 days for preserved rights customers.
People who had preserved rights and get AA or DLA higher or middle rate component may be able to get the Severe Disability Premium with their Income Support or Minimum Income Guarantee until their AA or DLA stops, 4 weeks after 8 April 2002.
Severe Disability Premium is a component of Income Support or Minimum Income Guarantee paid to disabled people who satisfy additional criteria. If a customer is entitled to this they will be informed by the Department for Work and Pensions.
After 7 April 2002, everyone who claims Income Support from a care or nursing home will be able to apply to the Local Authority for help with care. The Local Authority will work out how much someone should contribute towards the cost of their care.
Advantages of the new arrangements
The new arrangements also help people who want to be cared for outside a care home, by allowing local authorities to be more flexible in the ways they provide care. For example, by phasing out the Residential Allowance there will be less of a financial incentive for Local Authorities to place people in residential care, and consider other options such as supported housing, or help at home.
The new rules also mean that the local authority will be able to ignore
the value of someoneÁs home for up to 12 weeks when looking at any contribution
the person should make towards their care. This will, in particular, help
people thinking about going into homes for the first time, by giving them
time to make decisions about their future care, before having to make
a decision about selling their home.
Additional Information for Care Home Owners and Associations
What would happen if the social services Departments assess a lower level of funding than currently paid?
The guiding principle is that it would be exceptional for anyone who wishes to remain in a home to be moved. Clearly, if someone does wish to move out of a home, and appropriate care can be provided by other means, Local Authorities will look to do this wherever possible.
What would happen if a home wanted to increase fees?
If a home wishes to increase fees,any proposed increase will be for negotiation between the home and the Local Authority.
Will the changes represent an opportunity to standardize Local Authority contracts?
Local Authorities will continue to draw up their own contracts and there are no plans to set a national standard. Any authority that has placed a client in another area, and has a financial interest in them, will retain funding responsibility for that client.