Change of benefits on entering care home

[imnotloony]

Hi,
Haven't posted much on here though often read other posts. Now that we are thinking of long-term care for Mum (Az for 4 years, living with us) I need a bit of advice. She will be self-funded, as she owns a property which is being rented out. After phoning pension service to find if her pension would be affected, was told that her pension credit would probably be stopped when she starts paying CH fees. No explanation was given so wondered if anyone knows why this is? Also, was interested to read on another thread that we don't legally have to pay top-up fees. When Mum had gone into respite over last few years, I have always signed a form saying that I would pay this, but can I just refuse? It's all so mind-boggling!

 

[nitram]

Pension Credit is given for an assessed period, normally 5 years.

Moving into a care home, amongst other conditions, terminates this assessed period.

After the move your Mum should inform DWP of the change and reapply for Pension Credit, hopefully she will be granted another assessed period.

It most likely was not top up fees, it was a charge for respite because of your Mum's financial circumstances, you have to pay this, The only exception would be a 6 weeks maximum of intermediate care under reablement on discharge from hospital.

Top up is when the LA are funding care and ask for a top up as the care home charge more than the LA tariff, you don't have to pay this and should not sign anything. Top up could be £x but the care home increase fees and top up becomes £(x+n), the LA will expect you tp pay £(x+n)

 

[PeggySmith]

Does she get Attendance Allowance? If so, that will continue. Also, if she's in a nursing home, she'll probably also get Funded Nursing Care which all adds up towards the fees.

 

[imnotloony]

Thanks for the comments.
Didn't make myself totally clear as when she has had respite stays, they have been funded by LA as her savings are less than £23,500 and they didn't take the property ownership into consideration.
Nitram - yes, we will inform DWP of the change when she moves into CH so hopefully they will reassess and start paying pension credit again.
Peggy - yes, she receives AA so that should continue. It won't be a nursing home, just a care-home which has dementia residents.

 

[cragmaid]

I don't understand how your Mum can own a property, rent it out and still get Pension Credit, let alone not have it count towards her assets? How does her rental income not count as income, thus eliminating Pension Credit.
My Mum was on pension credit and AA, sub-basic state pension was her only income and she owned her own house with savings of about £10k. When Mum went in to the CH her Pension credit was paid while the deferred payment scheme kicked in for her fees. When her house was sold she became self funded, no Pension credit was payable but she still gets AA and the sub-basic pension as before. She will receive no financial support for her CH until she gets down to the £23.5K
Please don't think I'm accusing anyone or anything like that, I just wondered how the system is so different, perhaps it's a locality thing?

 

[nitram]

AIP (assessed income period) is complicated and can lead to some strange outcomes, it is currently under review.

"The current policy means that there are different expectations for different customers:
Under 65 – AIPs are not set for this group of customers, so they are already required to report all
changes of circumstance which will affect their entitlement as they happen.
Aged 65-75 – AIPs are typically set for 5 years. This means that any changes to capital or
retirement income within this period which reduce a customer’s entitlement will not be applied, and
customers are not expected to report such changes. However, if they report a change which would
increase their entitlement then this will take immediate effect. Customers are expected to report all other changes of circumstances as they happen, regardless of whether these would increase or
reduce their entitlement.
Aged 75 or over - AIPs set after someone reaches the age of 75 typically have no end-date (so that
those aged 80 and over are not subject to a review); customers are completely protected from any
changes to capital or retirement income which would otherwise reduce their entitlement. As with the above group they can still benefit from changes to their retirement provision which would increase
their entitlement, and they are still obliged to report any other changes to their circumstances."

>>>Abolition of Assessed Income Periods for Pension Credit<<<

 

[imnotloony]

Thanks for that info, nitram. Mum is 92 so comes into the upper age-bracket. Rental of house has only just begun but I rang DWP straight away and informed them and was told that the rent would not affect her pension credit.

 

[nitram]

I think the AIP situation is currently as I posted in post 6 and that it could change in April 2016.

The current Government announced its intention to abolish AIPs in the Spending Review on 26 June 2013. It has tabled an amendment to the Pensions Bill 2013/14 in advance of Report Stage on 29 October to provide for the abolition of AIPs from April 2016.

>>>COMMONS LIBRARY STANDARD NOTE<<<

 

[steviep]

Nitram - Mum's PC was stopped when she went into the CH because of her change of circumstances as they included 50% of the value of her house as capital. If she had remained at home the AP wouldn't have ended.

The house has been disregarded for CH fees by the LA because I'm over 60 in July and live in the house so why is it different for PC?

I've informed the DWP that she was self-funding for a month until her income fell below the £23,250 but they haven't re-instated her AA for that period. It could be because the LA haven't yet sorted her charges for the period, though I've paid an invoice for the basic weekly rate for Nov 2013 to March 2014. Do they liaise? No, I suspect is the answer

 

[nitram]

stevep

As I have said it's complicated and depends on personal circumstances.
Best thing to do is to make an appointment with CAB or AgeUK to discuss your Mum's situation.

This may help.

If you enter a care home on a permanent basis, your Pension Credit claim may be treated differently. If you're in a couple when you become a permanent resident (other than in an Abbeyfield Home), you're treated as a single person. This also applies if you and your partner both move into a care home permanently, even if you occupy the same room.
When you make a claim as single people, your capital and your partner's capital are no longer counted together. If your joint income was too high for you to receive Pension Credit, you may find that you are entitled to it when you move into a care home permanently.
If you own your home and you're a permanent resident and do not intend to return home, your house will be treated as capital (which may mean that you're no longer entitled to Pension Credit) unless:
it is occupied by your partner (but not if you're estranged or divorced)
it is occupied by your partner or a relative as their home if that person is over 60 or incapacitated
it is occupied by a former partner from whom you are estranged or divorced, but only if they are a lone parent
you're taking steps to sell the property – its value will therefore be ignored for 26 weeks, or for longer if it is reasonable to in the circumstances

Expand 'How care home stays can effect your credit' in >>>NHS INFO<<<

 

[steviep]

Thanks nitram

So, from that I'll need to contact DWP again once I turn 60.