selling house to pay for care home

treliac

EdInvestor wrote: »

Can anyone else comment about this?A differential of 40% between the social services cost and self funding is massive and most certainly indicates a different approach to funding if it is correct/ widely applied.

The price that social services pay is set locally and reflects the market in any specific area. It is likely to be lower than an individual would pay due to the value to care home owners of having local authority business and thus being able to keep rooms in occupance. Basic economics if you like.

To be charging private residents a 40% higher rate smacks of exploitation. How does this home compare with charges made by other homes in the area? What is this home offering that is so superior? Would shopping around be advisable. Maybe not for someone settled somewhere. But for anyone starting to search, it is important to look around and find out the charges to private residents, how homes compare and what is provided for what you are going to pay. (It should also be possible to find out what the local authority would pay and how the charges compare).

Most homes are private businesses and are out to make a profit. Many offer good care, some not so good. Some charge reasonable fees, others may be considered greedy. In my area, very good care is provided by the ex-council run homes that are now run by a not for profit organisation.

I would advise anyone starting to look, to make careful enquiries and to look at a range of suitable homes before making a decision.

getting-sorted-sarah

Have a word with your local Age Concern, in many areas they can put you in touch with Independent Financial Advisors who specialise in this area and can provide an initial consultation free of charge.

http://www.ageconcern.org.uk/AgeConcern/local.asp

treliac

bryanb wrote: »

In my experience the LA do not tell you how much they pay for care at any individual home, they just say how much the resident must contribute taking into account their income. Attendance allowance, DLA and pension credit were ignored in my mothers case (2005)

Social services do not decide at local level how much to charge the care home residents that they are supporting. These charges are set out by the Department of Health in their 'Charging for Residential Accommodation Guide (CRAG) http://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_073650

Staff just have the responsibility of implementing the charges as set by central government.

They have no jurisdiction over the fees imposed by privately-run care homes to residents for whom they do not pay.

treliac

getting-sorted-sarah wrote: »

Have a word with your local Age Concern, in many areas they can put you in touch with Independent Financial Advisors who specialise in this area and can provide an initial consultation free of charge.

http://www.ageconcern.org.uk/AgeConcern/local.asp

I believe that Age Concern will help and advise people who are looking for a suitable care home and who want advice on the whole issue of funding / paying for care. They are independent and should be able to offer excellent advice.

I've not heard of people being referred to an IFA though. Wouldn't an IFA be looking to sell some sort of a product rather than be likely to be an expert in this area of finance?

bryanb

treliac wrote: »

Social services do not decide at local level how much to charge the care home residents that they are supporting. These charges are set out by the Department of Health in their 'Charging for Residential Accommodation Guide (CRAG).

I know , but I said the LA do not reveal the amount they pay to the care home.

movingon

"Wouldn't an IFA be looking to sell some sort of a product rather than be likely to be an expert in this area of finance?"

No one should be looking at a general IFA for issues regarding care fee funding. You need an IFA who specilises in this area and is has appropriate qualifications, and can advise on appropriate tax situation and how best to save money for potential beneficiaries as well as how best to fund the care fees. . See here.
http://www.fssc.org.uk/cgi-bin/wms.pl/Accreditation/618

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treliac

bryanb wrote: »

I know , but I said the LA do not reveal the amount they pay to the care home.

It's no big secret. Anyone working in the field should have access to the figures. Or, contact the social services 'contracts section.' Or, ask the home management - if they are evasive, it might be a warning sign. They should be able to justify their pricing policy.

bryanb

treliac wrote: »

It's no big secret. Anyone working in the field should have access to the figures. Or, contact the social services 'contracts section.' Or, ask the home management - if they are evasive, it might be a warning sign. They should be able to justify their pricing policy.

I made a token attempt to get this info,
The LA said the home would provide the info if they chose to.
The home management told me that they give a bulk booking discount to LA, but not the amount.
I stopped at this point as mother is Part LA funded and the info would not have had any effect on her payment.

treliac

bryanb wrote: »

I made a token attempt to get this info,
The LA said the home would provide the info if they chose to.
The home management told me that they give a bulk booking discount to LA, but not the amount.
I stopped at this point as mother is Part LA funded and the info would not have had any effect on her payment.

bryan, I have just looked at the public website of my own LA. I typed 'care home contracts' into the search bar and up came the info.

Why not try your own/your mother's? The person you asked may not have known off the top of their head, but it is the public's right to know if they so wish, irrespective of whether it will affect their relatives' costs. It might shed light on the approach of the home itself.

bryanb

Thanks, found it, now need to understand the banding etc.