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Rory
Post  Post subject: Social care costs  |  Posted: Wed Jan 28, 2015 9:59 am
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So I was just playing around with this cost calculator, 'Care: the costs you could face' on the BBC website and it seems that, if you reach an age at which you are not longer capable of living independently (or with part time care provision) in your own home, then as a state pension recipient you would still be expected to pay the £230 residential care home fee per week. How are you supposed to do this on a pension of £113 per week?

If a pensioner has no other means of income (from property, savings or private pensions) but is also dependent on full time care for survival, then what does the council do? Do they literally ignore them and leave them to die?

http://m.bbc.co.uk/news/health-30990913

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marnixR
Post  Post subject: Re: Social care costs  |  Posted: Wed Jan 28, 2015 12:54 pm
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where do you get the £230 from ? this BBC page seems to indicate that it's more than double that amount

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Rory
Post  Post subject: Re: Social care costs  |  Posted: Wed Jan 28, 2015 3:43 pm
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Oh yeah, sorry, £230 is the projected amount that would need to be paid in living costs (separate from care costs) once the 'cap' on how much you are required to pay for care is reached.

Quote:
What happens when the cap is reached?
The local authority will pay the part of your bill that covers care costs.

You will still be responsible for your £230 a week living costs.


This is the result produced if you plug in data for a state pensioner receiving nothing except state pension:

Quote:
From your income, benefits and assets you may pay
£28,800
Over 6 years & 3 months
before reaching the cap on care costs
We estimate you could be entitled to some help before you reach the cap
Your contributions
£28,800
TOTAL£146,900
Over 6 years & 3 months Council contributions
£118,100 The total bill may be £146,900 as living costs do not count towards the cap. This makes the overall cost more than £72,000.
The figures above are estimates and do not constitute financial advice.
Weekly breakdown of costs
Living costs
=£230 a week +
Care costs
=£222 a week
£452 a week
This assumes you are being charged the weekly rate set by your local authority. Many care homes argue this does not cover costs so will charge people funding themselves more.

How do independent sector and council rates compare?
£503 a week
average cost for self-funders in North West* £469 a week
average local authority rate in North West


Although in reality such a person would also receive housing benefit prior to entering residential care so I don't know how that is taken into account.

It's pretty confusing - what I want to know is, would they actually deny a care-dependent pensioner a place in a care home if their state pension and related benefits were insufficient to meet the care and living costs?

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marnixR
Post  Post subject: Re: Social care costs  |  Posted: Wed Jan 28, 2015 7:38 pm
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i think the main losers in this type of scheme would be people like my late mother-in-law, who lived on a pension of about £90 a week, but owned her own house, inherited from her husband after he died

that would immediately put her in the bracket where she had to fork out for care from an income that is clearly inadequate for the purpose
fortunately she died 20 years ago and never had to deal with this dilemma

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Rory
Post  Post subject: Re: Social care costs  |  Posted: Thu Jan 29, 2015 12:00 am
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Yeah, it's not very fair, sometimes you just have to think, what is the point?

Both sets of my grandparents have rented privately for their entire life, and sure they worked hard, but I think my parents have worked far harder and for a lot longer. Yet it is my grandparents who receive a lot of state support whereas, when my parents reach that age, they will be expected to use money from their home ownership in order to pay care costs.

Why does the government seem to try to remedy the lack of equality of opportunity with equality of outcome? It's a double injustice.

No point working imo except to spend time doing what you love and doing something constructive for society.

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marnixR
Post  Post subject: Re: Social care costs  |  Posted: Thu Jan 29, 2015 5:03 pm
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i've long ago given up on expecting any hand-outs from the government when it comes to means tested benefits

true, we're not not poor, but that's mostly because we tend to live within our means - we're probably from the last generation where "borrowing" was a dirty word
not for us the concept of middle class represented in the Sunday Times who worry about public schools and nannies, but even then assistance towards e.g. paying student fees eluded us

so in a way that's why the concept of a mansion worries me : at first it will start with houses over 2 million, then 500,000 and before you know it, anyone who owns their own house pays mansion tax - it wouldn't be the first time that tax creep perverted its initial intention

so i'll just have to hope that we both stay sufficiently healthy before dropping dead at short notice

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Rory
Post  Post subject: Re: Social care costs  |  Posted: Thu Jan 29, 2015 11:51 pm
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"So you own a two bed flat, eh? Hm. I'm afraid, Sir, that's now classed as a mansion."

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Rory
Post  Post subject: Re: Social care costs  |  Posted: Fri Jan 30, 2015 7:51 pm
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If you were expecting to need to be admitted to a residential care home in the near future (within the next 12 months or so) and you owned a home/savings/other financial assets, then you would be better off liquidating all of it and giving it either to next of kin, or to whatever cause you wanted your life's work to be dedicated to, or just spend it on yourself (travelling the world, or whatever) OR give it to your kids in their name on the understanding that it is still your money and that they will buy things for you out of it, as and when required. Instead of handing it all over, effectively, to the local council.

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