|
Care Standards Update
Edition No. 15 February 2002
Content
This Care Standards Update addresses the various changes to funding of patients which are due to be introduced from 8 April 2002.
CHANGES TO LONG TERM CARE FUNDING FROM APRIL 2002
Introduction
This Care Standards Update details changes to funding for patients in residential care and nursing homes from 8 April 2002. These changes are:
-
Preserved rights for Income Support and Minimum Income Guarantee
-
The Residential Allowance
-
Part III accommodation rates
-
Attendance Allowance and Disability Living Allowance for personal care
In particular it explains how preserved rights rates of benefit will change.
Current Benefit Arrangements
Until April 2002, the Benefits Agency will support patients in residential care and nursing homes in one of three ways:
-
Preserved rights for patients living in homes before April 1993
-
The Residential Allowance for normal Income Support, Minimum Income Guarantee, (and a few Jobseeker's Allowance Income Based) people in independent sector homes
-
The Part III rate for people in local authority homes.
Changes to Income Support and Minimum Income Guarantee
Preserved rights end on 7 April 2002. The Department for Work and Pensions will work out a new amount of benefit for people with preserved rights, using normal Income Support or Minimum Income Guarantee allowances and premiums. (Minimum Income
Guarantee is paid as Income Support). Local authorities will take responsibility for arranging the care, and funding of care, of people who had preserved rights.
People getting the Residential Allowance or Part III accommodation rates on 8 April 2002 will continue to get them until they leave the home or their claim ends. If they claim again from a care or nursing home they will get normal Income Support or Minimum Income Guarantee allowances and premiums.
From 8 April 2002 all new service users going into residential care or nursing homes will get normal Income Support or Minimum Income Guarantee allowances and premiums.
Current savings rules will not change. If someone is claiming Income Support or Minimum Income Guarantee, savings over £10,000 affect the amount they can get. People with over £16,000 usually cannot get these benefits. For someone asking the local authority for financial help towards their care, the amount someone can get is affected if they have more than £11,5000. People with savings over £18,500 usually cannot get help from the local authority. Money that would have been spent on preserved rights of Income Support and Minimum Income Guarantee, will be given to local authorities to help with their funding responsibilities. They will also get money to help meet the shortfalls between what some preserved rights people get in benefits, and the fees care homes are charging them.
Changes to Attendance Allowance (AA) and Disability Living Allowance (DLA) for Personal Care From 8 April 2002 for People Getting Preserved Rights
If someone is in a care home funded by the local authority, Attendance Allowance or Disability Living Allowance for personal care usually stops after 28 days. This is because the local authority provides equivalent support. But at the moment, preserved rights customers can continue to get these benefits.
From 8 April 2002, Attendance Allowance or Disability Living Allowance for personal care will also stop after 28 days for preserved rights customers. This is because from this date, the local authority will fund their places and provide equivalent support as explained above.
People who had preserved rights and get Attendance Allowance or Disability Living Allowance for personal care may be able to get the Severe Disability Premium on their Income Support or Minimum Income Guarantee until their Attendance Allowance or Disability Living Allowance stops, four weeks after 8 April 2002.
Ending Preserved Rights - How the Changes Will Work
In early November 2001, the Department for Work and Pensions checked its records and produced a list of people with preserved rights. It provided the list to each local authority social services department or social work department.
These departments will become responsible for the people on the list and arrange care assessments to work out what type of care is appropriate for each person. They will probably start contacting customers from January 2002 and will also assess the funding needed. They will look at how much income and capital people have, and decide how much each person should pay towards their care. But however much anyone is asked to pay, the local authority will make sure that no one will be left with less than the personal expenses allowance, currently £16.05 per week.
Between December 2001 and April 2002, the Department for Work and Pensions will work out the new amount of benefit for people who had preserved rights. They will send them a letter showing the new amounts of benefit.
After 7 April 2002, everyone who claims Income Support from a care or nursing home will be able to apply to the local authority for help with care. The local authority will work out how much someone should contribute towards the cost of their care.
Publicising the Changes
From November 2001, the Department for Work and Pensions wrote to customers with preserved rights or the people acting on their behalf, to tell them in advance about the changes.
The Department for Work and Pensions will make it clear that although their Income Support or Minimum Income Guarantee will change from April 2002, the local authority will make sure they get the care they need.
Conclusion
Members should pay particular attention in their negotiations with local authorities over the fee reviews from April 2002 to ensure that they secure agreement from the local authority in relation to the fees already being received for patients.
In particular, members are reminded that they may have a fee structure which embraces patients on Preserved Rights who pay an enhanced top up to meet current fees. Local authorities will no doubt attempt to bring all of the patients for whom they contract to a standardised fee. Members should remind local authorities of the provisions of the Statutory Direction of Choice which does enable patients to choose a nursing home. Those patients to whom this applies have obviously been applying that right of choice since 1993 and local authorities should be reminded of this.
The total sums of money involved in local authority budgets for Personal Social Services are so large that it is very difficult to tease out specific spending. New money has been transferred from central Government to local authorities and members should attempt to ensure that it is used for the purpose intended and not swept into the general Personal Social Services budget.
Finally, in all of these negotiations members should continue to bring to the attention of all commissioners the provisions of Building Capacity and Partnership in Care which include at item 6.7:
Commissioners should ensure that they have in place the following:
-
Fee negotiation arrangements that recognise providers' costs and what factors affect them (as well as any scope for improved performance) and ensure that appropriate fees are paid.
-
Arrangements that ensure that funding levels are linked to the outcome of the individual assessment process.
|
