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Residential care fees

Care keywords and phrases

Annuity A contract that promises to pay a guaranteed income until death in return for a lump sum payment
Attendance Allowance Benefit for over-65s who need help with personal care. Not means tested and is tax-free. Does not count as income for other benefits. There are two rates available.
Continuing care Fully-funded NHS care for severely ill individuals
Deferred payment scheme An arrangement to allow care fees to be paid while waiting for a property to be sold
Equity release Arrangement to allow the value of a property to be released without selling it
Escalation Option on annuity-based Care Plans to enable income to increase each year
Lasting power of attorney Legal agreement to enable a third-party to act on another person’s behalf
Registered Nursing Care Contribution NHS-funded contribution towards cost of nursing care
Personal Care Allowance
Contribution made in Scotland towards the cost of personal care. Not means tested. If taken, you lose your entitlement to Attendance Allowance.
Personal Expense Allowance A weekly amount that people whose care is being fully funded are allowed to retain from their pension for their own personal use
Property Disregard An initial 12-week period during which property cannot be called on to cover the cost of care
Section 47 care assessment The assessment by a local authority of an individual’s care needs


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