Confused about funding

[JRB4040]

My poor old dad is desperately trying to sort out what is best for my mum as he is struggling to cope. As a family we have agreed that to get the care mum needs (and deserves) we need to move her into a care home but we are very confused re the funding. My parents own their own home and as such do not qualify for any financial assistance. However my dad is under the impression that he will need to sell his house to pay for mum to go into a home and he will then rent somewhere for himself, whereas I am sure that the value of their property is not taken into account when working out funding. I have spoken to a couple of organisations but it all seems so confusing. Can anyone explain the way this works in plain, simple language? Thanks! Julie

 

[jenniferpa]

Hi Julie - I'm pleased to tell you that your father is wrong. The marital home, provided he remains in it, it not considered when assets are calculated. Any other assets (savings, other property, cash in the bank) are added together and then your mother's share is considered to be 50% of that. If that 50% is above £21000 (I think) then you will be expected to pay all of the care home fees. From between £21000 to £13000 an assumption is made about nominal income (for every £500 of savings you're considered to be earning £1 a week). This nominal income is then added to your mother's pension and that (less the personal allowance of £19.50) is the amount you have to pay, with the local authority picking up the rest of the tab. To be honest I haven't checked my numbers - this is from memory (and my memory's not that great). The full details are contained within a document called CRAG (Charging for Residential Accommodation Guidelines) which you can find here http://www.dh.gov.uk/en/Publication...tions/PublicationsPolicyAndGuidance/DH_073650

That's a very simplistic description - there are various things that can and should be done but that's the basics.

Edited to add - I've just remembered: the nominal income is actually called tarrif income in CRAG