Care Home Fees

Care Home Fees in England: Navigating the Legal and Financial Maze

Care home fees are a contentious issue, with many people in England under the misconception that the NHS will cover all costs. However, the reality is often very different, leaving individuals and families to navigate complex legal and financial systems to protect their interests. Drawing on my experience as a barrister handling cases involving disputes over care home fees, this guide provides insights into the law, practical solutions, and how professional advice can make a difference.

Understanding the Legal Framework: The Care Act 2014

The Care Act 2014 governs how local authorities assess an individual’s ability to contribute to care costs. Under the Act and associated regulations, individuals with capital exceeding £23,250 must usually fund their care entirely, while those below this threshold may receive local authority support. However, the process is nuanced, and the rules surrounding “disregarded capital” add a layer of complexity.

Key Provisions of the Care Act 2014:

  1. Financial Assessments:
    • Local authorities evaluate the market or surrender value of an individual’s assets (minus 10% sale costs and any debts secured on the asset) to determine eligibility for funding.
  2. Disregarded Capital:
    • Certain assets are excluded from assessments, such as:
      • The primary residence, if occupied by a spouse or qualifying relative aged 60 or over.
      • Business assets essential for self-employment.
  3. Challenging Valuations:
    • Local authorities often base assessments on assumptions of vacant possession or unrealistic market values, which can be contested.

Practical Challenges: Insights from My Cases

Through my work, I’ve seen firsthand the difficulties families and care homes face when disputes arise.

  1. Disputing Asset Valuations:
    • In one case, a local authority assessed a client’s interest in a shared property at over £200,000, leading to a requirement for self-funding. By challenging the valuation methodology and emphasising the property’s planning restrictions and shared ownership, we successfully reduced the valuation, ensuring a fairer outcome.
  2. Acting for Care Homes:
    • Representing care homes in fee recovery disputes is another critical aspect of my practice. In a case involving an outstanding debt of £14,000, I advised on using the Mental Capacity Act 2005 to establish liability and recover fees. Understanding the legal entity of the care provider and the contractual relationships was essential in securing a positive resolution.
  3. Deprivation of Assets:
    • Families sometimes transfer assets to avoid care fees, but this can trigger deprivation of assets rules. Local authorities have the power to investigate such transfers and may still include the disposed asset in the financial assessment. I have advised clients on lawful strategies to safeguard their assets while complying with regulations.

Common Misconceptions About Care Home Fees

  • “The NHS Covers It All”: While the NHS provides free care for medical needs under Continuing Healthcare (CHC), most social care costs fall to individuals.
  • “I Can Give Away My Home to Avoid Fees”: Gifting assets often fails under deprivation of assets rules, leaving families surprised when councils pursue these funds.

How I Can Help

My expertise includes challenging unfair assessments, representing care homes in fee recovery disputes, and advising on strategies to protect assets within the law. Key services include:

  1. Challenging Local Authority Decisions:
    • Using the Care Act 2014 and precedent cases, I ensure valuations reflect reality, not inflated assumptions.
  2. Advising Care Providers:
    • I assist care homes in recovering outstanding fees, resolving disputes with local authorities, and ensuring compliance with contracts and regulations.
  3. Strategic Asset Protection:
    • Legal tools such as trusts and deferred payment agreements can protect assets, but advice is crucial to avoid pitfalls.

Contact Me for Expert Legal Advice

If you’re dealing with a care home fee dispute or planning to protect your assets, I can provide expert guidance tailored to your situation. Contact me today to discuss your case and find out how I can help you navigate this challenging area of law.