With early intervention and prevention a key focus on the Putting People First Agenda, together with the government's Personal Care at Home Bill, the large domiciliary care sector is set to continue growing. One area of significant growth which is unlikely to be impacted signficantly by any change in legistlation is the self-funding market.
A growing market
Around 275,000 older people with less intensive needs currently get no support from their local council. With Local Authorities having to find anywhere between £670m and £1bn to fund the free care the Personal Care at Home Bill will create, it is possible that eligibility criteria for support will be tightened up for everyone else.
The cost for self-funders
Total private payment for community based care such as homecare (including top ups on statutory care) is currently estimated at £1.46bn a year. On average someone needs 12.4 hours of homecare per week at a cost of £17.30 per hour. This equates to a bill of £858 a month - not taking into account higher charges at weekends and bank holidays.
How can care providers, relying on the income, and those receiving care help ensure that care bills can be met for as long as needed?
Paying for domiciliary care
Equity release can play an integral part in funding long term care at home, providing the funds with which to buy an Immediate Care Plan.
For a one-off payment an Immediate Care Plan can guarantee those requiring care an income for as long as they live - tax-free if paid directly to a registered care provider. And, should they need to move into residential care at a later date The Care Plan can be transfered to pay for their new care requirements.
The importance of financial advice
While care providers shouldn’t, of course, be offering financial advice, you can help people by pointing them in the right direction and providing them with contacts who will give them the facts they need to enable them to make an informed decision.
To find out more contact Nye Jones, Director of Local Authority development & Domiciliary Care