Local Authority Funding

[roboandkate]

My mother has been self funding for about 18 months but her capital has now dropped below the threshold so the LA are arranging a new contract with the CH.

My question is does this have to be a 3-way contract with me having to pay the CH as well as the LA paying them, or can I ask to pay the LA instead.

 

[Wirralson]

My mother has been self funding for about 18 months but her capital has now dropped below the threshold so the LA are arranging a new contract with the CH.

My question is does this have to be a 3-way contract with me having to pay the CH as well as the LA paying them, or can I ask to pay the LA instead.

I'm not quite clear which threshold you are referring to - upper or lower, or why you, as apposed to your mother, is paying (even if you are administering her assets under Power of Attorney (PoA) or Deputyship. However, usually the Local Authority pays the home directly, and in cases where the assets of the person being cared for (your mother in this instance) fall between the upper and lower threshold, being recovered from the assets of the person concerned. This is why the LA is making a fresh contract (they also usually get a discount as compared with self-funders). I hope this is helpful.

 

[retiredcopper]

Or are you referring to paying a 'top up' for your mum's care? Are the LA paying the full cost of the CH or are they agreeing to pay up to their 'limit' and the difference is to be paid out of your mum's assets or by you? If this is the case I assume you would pay the 'top up' to the CH direct as it makes the LA admin easier for them - although not being in this position (yet) with MIL's care home I may be wrong.

 

[Saffie]

Are the LA paying the full cost of the CH or are they agreeing to pay up to their 'limit' and the difference is to be paid out of your mum's assets or by you? If this is the case I assume you would pay the 'top up' to the CH direct as it makes the LA admin easier for them - although not being in this position (yet) with MIL's care home I may be wrong.

The LA never pay the full cost of a care home. The state pension of a person will always have to be paid towards the fees as will any occupational pension if it exists. This is a misconception a lot of people have. In addition a certain amount will be paid from the capital between the upper threshold of £23,250 and the lower of £14,250 at a defined ratio.
In addition any top-ups cannot be paid from the assets of the person concerned as, if they could afford to do so, the LA would not have to be involved with payments. These top-ups have to be found elsewhere.

However, the answer to Roboandkate's query is as Wirralson has said, that, in most cases I believe you will pay the portion you have to pay from your mother's account, direct to the LA. I certainly do. The invoices come direct from the LA and I simply ring up and pay it.

in cases where the assets of the person being cared for (your mother in this instance) fall between the upper and lower threshold, being recovered from the assets of the person concerned.

However, it makes no difference whether you are talking about the upper or lower threshold, the payments will still be required, as I have already said, even once your mother's capital has fallen below the lower threshold.

 

[retiredcopper]

Sorry Saffie, I didn't mean it to read that the LA would pay all the fees - I assumed (probably wrongly) that the OP was aware about the pension contribution etc. I was just asking if the OP was referring to 'top up' payments. I hope my reply hasn't caused any confusion.

 

[Saffie]

No problem at all. Just wanted to clarify it!

 

[jenniferpa]

I think, on the whole if it's possible to get the LA to contract for the care and then then you pay the LA it's better from a contractual point of view. Such arrangements tend to be more stable and you are less likely to get into a situation where the top-up climbs dramatically over time. They will almost certainly rise but this sort of arrangement gives you a bit more protection than otherwise. However, not all LAs do it this way.

Have a look at this fact sheet, http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=125 particularly the bit about top-ups.

 

[Saffie]

I am sorry roboandkate. I've only just realised that your post was your first and I'd like to wecome you to TP. Despite any confusion above, I can promise you that you'll find plenty of help and support here.

I don't think top-ups was mentioned by roboandkate but of course, that is not to say they are not possibly involved.

 

[roboandkate]

Thanks everybody for your comments, like most this has been a long saga.

In June last year Mum's capital was nearing the upper threshold so I contacted the LA requesting a Financial Assessment.

For the first few months apart from acknowledgments confirming they had received my emails they refused completely to communicate with me.

Finally and after a lot of badgering they have completed the assessment and I understand have agreed a rate with the CH and have drawn up a contract which they want to back date to 27th July, the date Mum's capital dropped below the upper threshold.

Obviously Mum has been paying the CH since July as she was contracted to and is currently severely out of pocked, added to this once I have a contract there will be over payments of pension credit and attendance allowance to be paid back.

The LA have said that the over payments will be refunded by the CH but I am worried that if there is any dispute about the amount I do not want it to be with the CH. Also it wasn't the CH's fault that the LA sat on this for so long.

Just for anyone else reading this concerning top up fees I have avoided paying them. I made it clear to the Social Worker that I knew the rules and refused to get drawn into any conversation regarding them. All I would say was 'Mum doesn't want anything additional so I don't think top-up fees would be appropriate'.