12/09/2017
Louise Rance
Dementia is the leading cause of death in the UK and as the population ages, the number of people affected is set to rise to over a million by 2025. As such, adult social care – and the cost of it – will become an increasingly thorny issue.
According to academic research for the Alzheimer’s Society, in 2014, the majority of people (around 69%) in residential care across the UK had dementia. Another report from the UK Homecare Association in 2013, stated that, including those not formally diagnosed, around 60% of people receiving care at home had dementia.
While the healthcare needs of dementia patients can be treated by the NHS, much of the care that is needed is with day-to-day living; eating, washing, dressing and household chores, for example. These tasks are not covered under the NHS, so those affected need to decide whether they go into residential social care, a nursing home or continue to live at home with the support of their families and carers.
At the moment, if a person has less than £23,250 in capital, councils pay for all or part of their social care based on a sliding scale, following a financial assessment. If a person is in residential social care, or a nursing home, the value of their home is included within their capitol, but if they have a dependent, liable relative living with them, it isn’t. If the local authority is able to offer a deferred payment option, paying for their care can be put off until after their death so that the costs are taken from their estate, or the sale of their home, but there are complex criteria for eligibility to this.
A person with dementia living at home, who has less than £23,250 in capital will be means tested. This is a difficult calculation which takes into account a person’s assets, including their home in some circumstances, to identify what contribution they can make towards their care. If they need more than four home visits a day, it’s usually deemed that care would be more cost effective and they would be better suited in residential social care or a nursing home.
Being diagnosed with dementia ultimately means there will be issues with maintaining your independence and well-being. A Lasting Power of Attorney (LPA) is a legal document that gives a person you nominate the authority to make decisions on your behalf.
There are two types of LPAs. A property and affairs LPA allows your attorney to handle your finances, such as any property and savings you may have, paying for care fees or arranging the sale of your home if necessary. A welfare LPA addresses your personal well-being. It outlines what medical treatment you should receive or where you live, for example. You can even give your attorney the power to accept or refuse life-sustaining treatment on your behalf.
If you’re interested in drafting your LPA, Russell and Russell offers a free no obligation consultation to guide you through the regulations and to discuss what’s right for your circumstances.
Please note that this article is meant as general guidance and not intended as legal or professional advice. Updates to the law may have changed since this article was published.