The Process of Financial Assessment for Care at Home
Home care is not a free service, with certain exceptions. To receive funding from your local authority, you will need to arrange a needs assessment, followed by a financial assessment, also known as a means test.
A financial assessment determines the amount you will contribute toward your home care and the amount of financial support you may be entitled to receive.
Receiving Financial Support Through Your Local Council
The process of receiving financial support through your local council can be overwhelming, as many aspects must be taken into consideration.
In most areas of the UK, the financial assessment looks at components of your income and capital, and there are limitations to be aware of.
Several benefits and resources are widely offered to those who do not meet financial support criteria.
Needs Assessment
You must complete a mandatory needs assessment to be considered for financial support through your local council. The needs assessment is designed to evaluate your level of independence and functionality. In order to continue the process of applying for funding through the local council, you will need to be deemed in need of care through the needs assessment.
Financial Assessment Process in England
A Financial Assessment Officer from your local council will be assigned to evaluate your capital standing if you are in England, Wales, or Scotland; it is not required in Northern Ireland. During the financial assessment, they will visit you and ask questions to investigate your financial status. If you are receiving home care, the financial assessment officer will not factor in the value of your property during the means test.
Means Test Components in England
The financial assessment officer that conducts your means test will look at your earnings, pensions, benefits, and savings. If your income is generated alongside a partner, only your portion of the income will be factored in for the purpose of the assessment. The financial evaluation does not consider the value of your possessions or life insurance policies.
Capital Limits for Home Care Funding in England
The capital limit for home care financial support is £23,250. If your capital is between £14,250 and £23,250, you are entitled to some financial support towards home care from the local council. If your capital is below £14,250, it will not be included in the means test, and the local council will fund your home care.
Financial Assessment Process in Scotland
If you are above the age of 65 and have been deemed eligible by a needs test, you can receive free personal or nursing care in Scotland, regardless of your income or capital worth. The NHS will provide these services through your GP surgery. This support does not cover shopping or housework services.
Capital Limits for Home Care Funding in Scotland
Council must disregard the first £10,000 for individuals above state pension age, with a weekly tariff income of £1 per £500 over £10,000. For individuals below state pension age, the first £6,000 is disregarded, with a weekly tariff income of £1 per £250.
Financial Assessment Process in Wales
Welsh Government guidelines are slightly different from other areas of the UK. In Wales, the government guidelines state that no individual should live below the minimum income level. Therefore, you will pay a reasonable fare determined by your means test, with a maximum of £100 per week.
Capital Limits for Home Care Funding in Wales
Any capital below £24,000 is not considered during the means test; only the income will be factored in. For couples, it is only the individual seeking home care whose portion is considered. If your income is over £24,000, the local council may charge you the maximum cost for home care.
Financial Support Assessment in Northern Ireland
In Northern Ireland, the local Health and Social Care Trust determines whether you will receive home care, home adaptations, or financial assistance through a needs assessment. No financial review is required. The amount of care or financial support you receive is based on your needs.
Preparing for a Financial Assessment
It is helpful to gather the information you need to prepare for the financial assessment portion of this process. This information may include:
- bank account details;
- building societies;
- premium bonds;
- individual savings accounts; and
- your stocks or shares.
Collecting details of any disability-related expenses you currently have is also recommended.
What You Can Expect After a Financial Assessment
Upon completing the means test, you will be supplied with written records of your council’s assessment and decision on your required amount of contribution to at-home care. If you qualify for council funding, you will be given a personal budget toward care expenses. You can receive your budget through direct payments or arrange for the council to set up care for you, which you will be billed for.
Self-Funding
If you do not qualify for funding through your local council, you will have to pay the total cost of your home care services on your own. The council will be responsible for regular re-evaluations to determine your capital standing, typically once per year. The council will still aid self-funders in finding services and resources; however, they will not cover any additional expenditure.
Benefits You May Claim
There are several benefits available to individuals seeking home care. Many of the benefits you may claim do not require a financial assessment to be qualified. You may receive benefits alongside financial support from your local council, and you may be entitled to more than one benefit. Individuals with significant capital may still receive benefits.
Available Benefits
The available benefits include the following:
- Attendance Allowance
- Personal Independence Payment
- Industrial Injuries Disablement
- Constant Attendance Allowance
- Carers Allowance
- Pension Credit
- Disability Premium
- ESA Support
- Council Tax Discount
What if I Am Unhappy With My Results?
If you are unhappy with the results of your financial assessment, you have the right to make a complaint to your local council. Local councils have complaints procedures, which are typically available on their website. If your local council does not handle your complaint adequately, you may bring your concerns to your local government and Social Care Ombudsman.
What Happens if I Give Away Some of my Money?
Giving away capital or hiding your money is known as the deprivation of assets. If you intentionally reduce your wealth before a means test in an attempt to avoid paying for your home care services, you risk losing any financial support from your local council.
How Much Will I Have to Pay for Home Care?
The amount you will pay depends on the type of care or services you need and your unique circumstances. Individuals going into a care home will be given a Personal Expenses Allowance at a minimum of £24.90 per week after possible contributions.
Can I Receive Free Equipment or Home Adaptations?
If you are deemed in need of specific equipment or home adaptations, you may receive up to £1,000 of aid to cover costs. This is available through the local council, and anyone is entitled to this resource, regardless of income or capital. The only prerequisite of this service is a home assessment.
What Is a Home Assessment?
A home assessment is conducted through your local council. You must arrange for a home assessment in order to have access to free equipment or adaptation coverage; this can be done in person, by phone, or on your local council’s website. A council officer will perform your home assessment and determine the necessity for special equipment or adaptations.
What If I Am Self-Funding and Can No Longer Afford Care?
At the time of your initial financial assessment, you may have tested over the capital limit, but your savings have depleted significantly since then. Once you fall below capital limits, you can have your case reevaluated for financial support through the local council. It is recommended to have this arranged before hitting the capital minimum.
More Information on Home Care in the UK
There are many aspects of planning for home care in the UK, and it can quickly become overwhelming for you or your family to navigate on your own.
Shine Care At Home is a leading home care provider, with kind professionals available to answer your questions or concerns regarding preparing for home care, needs assessments, or means tests. Contact us today for further information.