Who pays for Long Term Care?
One of the problems for the current generation of elderly people is that they were brought up believing that the State would look after them 'from cradle to grave.' This is not the case though, and as far as long term care costs are concerned, in general the State only pays for the least wealthy.
The provision of long term care outside hospitals has become the responsibility of individual Local Authorities and it is not free to everyone. However, all nursing care whether at home or via a care home should be provided free. See State Support for England, Wales & Northern Ireland and State Support for LTC in Scotland for more details.
If your Local Authority agrees that you need care home care it will assess your means to work out what proportion of the costs is your responsibility, and what the Local Authority will pay. If you can expect a contribution from the Local Authority, the Authority will contract with the care home, pay the home direct but ask that you make your contribution towards the fees to them. The size of the contribution depends on the assessment of your wealth by a means test.
In England
Assets greater than upper means test limit
You will not be entitled to any financial assistance from the Local Authority for long term care costs in a care home - and it will usually be up to you to make all your own arrangements for care.
Assets between the means test limits
Some assistance may be given by your Local Authority. The amount of assistance takes into account all of your actual income and the 'tariff income.'
Assets below lower means test limit
You will have to give up all of your income to the Local Authority. They will top it up to meet care fees. 'Income' consists of all of your private pensions, plus most of the Social Security benefits to which you are entitled. You can, however, deduct an amount for personal spending.
More about state provision & the Community Care Act
The monetary limits in relation to the above apply to the individual needing care, where the Local Authority are considering care in a care home. Similar limits may apply where care is to be provided in an individual's own home but will exclude the value of the house.
Although Local Authorities have to provide the care you need if you qualify for it, there are times when there are more demands on their budgets than they can meet, and they are unable to provide immediately all the care that is requested at any one time.
Please note that long term care insurance products cannot be purchased through this site. Lifetime Care Products are only available via financial advisers.
The address for written communication is AXA, PO Box 1810, Bristol BS99 5SN.
AXA Sun Life plc is the provider of the Lifetime Care range of plans. Head Office: PO Box 1810, Bristol BS99 5SN. Tel 0845 30 30 430. Facsimile 0117 989 0202. Minicom 0845 603 0803. Website www.lifetimecare.co.uk AXA is a worldwide insurance group. In the UK one of the companies is AXA Sun Life plc. Authorised and regulated by the Financial Services Authority. (www.fsa.gov.uk/register). AXA Sun Life plc is a company limited by shares, registered in England No 3291349. Registered office: 5, Old Broad Street, London EC2N 1AD. As part of our commitment to quality service, telephone calls may be recorded
The information contained within this website is intended for UK residents only.