Paying for Care and The Care Act 2014

Posted by John Burrowes on Friday, May 01, 2015

The Care Act 2014 introduced big changes in the how care and support and are paid for and funded by local authorities. The changes are coming into force in two parts the first came into force on 1st April 2015 and the second, and for many the most important part, is due to be introduced on 1st April 2016.

The below has been prepared in April 2015 looking forward to the changes expected in the next year. However, with the upcoming General Election in May the Care Act 2014 may be changed or repealed before the remaining parts come into force.

The Current Position: Funding Care

Under the current rules the first £14,250 of assets are disregarded in means testing to pay for care. If you have between £14,250 and £23,250 the Council will subsidise your costs.

The Government says that anyone with over £23,250 of assets would be required to pay all costs of their care. This value excludes the value of property if their partner or close relative lives there.

If the person has less that this limit of assets the Local Authority will undertake detailed financial assessment to work out the contribution which should be made toward Care costs. This is calculated based on how much money you should be left with.

Funded Care is paid for by Personal Budget which is monitored by the Local Authority based on your needs assessment and support planning.

Post April 2016: Funding Care

The lower limit of £14,250 will stay in place and assets under this amount will be disregarded for contributions towards care costs.

The upper limit will change to £27,000 for non-residential care and to £118,500 for residential care. Those will assets between the lower and upper limits will be entitled to some financial support towards their care fees on a sliding scale.

For more information about the proposed changes to Care Fee funding please download our FREE information sheet by clicking on the "Documents" tab at the top of the page.