1. Oscars mum

    Oscars mum Registered User

    Jan 18, 2016
    #1 Oscars mum, Feb 10, 2016
    Last edited: Feb 10, 2016
    Hi All

    my mum may be a SF. the home we are thinking of have asked us to sign a contract for her whole life!!
    1. When her funds go below £14,250 the LA will pay their usual rate of £475.00 but mums fees are 615.00 at the moment. In the contract they say that a family member will have to pay a 'top up' of £136.00 difference (I know the maths doesn't work but that's what they said). Could we use her pension and Attendance allowance to fund this or do they take that as well? because if so the fees will be more than £615.00 i.e 475.00 LA Contribution + Pension 70.00 + AA 80.00 + Family Top of 136.00??

    2. During this life time contract what if the LA 'Usual rate' goes down and the homes fee goes up will the family have to still make up the difference? Can we still use the £14,250 that's left of her savings and assets? As a family we cant afford this as she may leave along time hopefully I'm lost!! and what if she needs a nursing home later on their fees will be more wont they?

    3. Do all homes ask you to sign a contract as that frightens me to death!!

    4. Is there a list of homes and fees anywhere for the Derby area?
  2. Shedrech

    Shedrech Volunteer Moderator

    Dec 15, 2012
    Hi Oscars mum
    This all sounds odd to me - but I only have one experience to refer to; dad's a self funder and in a care home
    I really do not remember all of this coming up - and I'd be very wary of signing up now to any potential future top-ups
    Hopefully others with a wider experience will respond too
    best wishes
  3. Pete R

    Pete R Registered User

    Jul 26, 2014
    #3 Pete R, Feb 10, 2016
    Last edited: Feb 10, 2016
    Hi Oscars mum,

    Welcome to the forum. Can't say I have ever heard of a life time contract before. I would only go for it if there was some benefit for your Mum by the fees being reduced over time but it doesn't appear anything like that is being offered.:confused:

    It is normal to sign a contract (see below). Most are fairly basic and cover what the CH is responsible for providing and what happens if your Mum goes into hospital (they will still want the money) and how long any cancellation period is including on death.

    Nursing Homes can be more expensive but your Mum will be entitled to £112/week which goes direct to the NH to pay for the Nurse. Be careful some NH's include this in their pricing some do not.

    The best way to find a CH is via the internet. It means a lot of work and either visiting/phoning to get some idea of price.

    The LA will become involved when your Mums savings reach £23,250. They will pay their rate of £475 but will use any pension/benefits to offset some of that. If someone has a high private pension the LA may not be paying that much at all. Out of her Pensions she will be allowed a weekly personal allowance of £24.90.
    They will also take £1 for every £250 of the savings till the amount reduces down to £14250 when they stop taking away the £1 but continue as above. (I have no idea why they do this)

    That £14250 is all your Mum is left to use on whatever and whenever she wishes. She doesn't have to wait till that is all she has left. It wont affect any future workings out.

    It is unlikely the LA rate will go down but may freeze, my LA only pay £410 and it has been like that for 3 years, but rest assured the Home costs will increase along with the top up.:mad:

    Depending on how long it is till your Mums saving fall to £23,250 it may be worth contacting the LA and get them to sign the contract with the CH. The LA pay the total and then bill your Mum/PoA for the top up and the other amount mentioned above. The New Care Act says this should be normal practice anyway. Doing this may, if the LA already have a contract with the home, reduce the fees and also limit any yearly increase. However some CH like the family to pay the top up separately as it is easier to apply and increase.

    Just in case you are not aware. No one is responsible for paying for another's care including top up's. When your Mum needs LA financial assistance the LA have to provide you with details of at least one CH in their area that can meet your Mums needs and is within their budget of £475. Trouble is If you visit and don't like it then a top up is inevitable. If the LA cannot find a CH then they have to up their rate till they do.

    Hope that helps.

  4. arielsmelody

    arielsmelody Registered User

    Jul 16, 2015
    One thing that is covered by the previous post but just to say again - your mum's pension etc will be taken into account but by the LA not the care home, so it will be part of the 475 paid by the LA.

    I didn't think the persons savings below the threshold were allowed to be used to pay top ups, but I might be wrong.

    Is there a break clause where you can give notice to the care home if you want to move your mum? What have the care home said about changes in fees, or is this contract designed to reassure families that fees won't change during the cared for persons lifetime?
  5. Beate

    Beate Registered User

    May 21, 2014
    Just to say that once your Mum's funds go below the threshold and she is no longer classed as self-funding, Attendance Allowance will cease if she is in a care home.

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.