OPINION
Asset-stripped: my father’s experience
By Peter Jenner
My father left school at 14. He has worked all his life, he was encouraged to buy his council house, he was encouraged to save, he has paid all his taxes. But he currently has many health issues and is no longer able to look after himself. He has needed nursing care since 2017.
A financial assessment was carried out at that point, and because he owned his council house he was required to pay for the care. I had to sell the house in order to raise the necessary funds.
Nursing home fees have amounted to around £250,000 over four years, paid entirely from the sale proceeds. The remainder of this sum has now dwindled to just over £23,500.
Financial review
I had been under the impression that once it fell below this threshold, the State would assume full funding responsibility. But no, after a review by Adult Social Care Financial Services, my father was asked to contribute more than his entire weekly income, consisting of his state pension and a very small annuity. I challenged this, and was given the following calculation:
For every £250 of capital over £14,250 there is a £1 tariff charge. £23,250 – £14,250 at £1 per £250 = £36.
Thus my father’s savings are being further eroded to fund his care by the tune of £36 per week. Only once my father’s assets fall below £14,250 will no further contribution be required from him.
Government proposals
I do not see the proposals put forward by the government as altering the situation one bit. People needing care are still going to have to sell their homes. The majority of people like my father are asset rich (a house) and cash poor.
I am unable to do a comparative costing as the government figure is to pay nursing expenses only and excludes accommodation expenses. Every invoice I have for my father (over three nursing homes and four years) shows a flat weekly fee which includes both, but I have no idea how much of the weekly fee refers to each. You can bet your bottom dollar that, when the two are split out, the accommodation fee will be the greater of the two, thereby reducing the government share.
What the government has forgotten is that the next generation (my son’s age group) may not be able to afford a house in their lifetime and will most probably live in rented accommodation. This generation will be both asset and cash poor. So the bill for social care will be sky high.
Levy here to stay
I also think that what is being proposed will not deliver. There is no actual plan with targets, and most of this cash will disappear into the NHS. Just look at today’s headline in the Daily Telegraph: NHS Hires Army of £200,000 Bureaucrats. Apparently 42 of them are being proposed. This expense will be on everyone’s payslips as an NHS social care levy. So we know it’s here to stay. Can you honestly believe any government reducing this payment in years to come? They would be slated as taking money out of the NHS.
I wrote to Amber Rudd a few years ago and told her that I thought the best system would be for everyone (working and non-working adults alike) to pay something like 50p a week (£2 per month) into a ring-fenced fund from the day they start working as an adult until the day they retire, this money only to be used for adult social care use. Not everyone will need care in their old age; none of us knows what the future holds; but, over time, and with the money invested wisely, there should be enough in the pot to pay for those in need. I wasn’t surprised when my idea was totally ignored.
So we carry on with the roulette wheel of life. All I know is that, if I am unlucky enough to need nursing care in my old age, I will be well and truly asset-stripped by the government. So what I should do now is spend it. Hang on, I cannot even do that, because if I do and then find within the next seven years that I need care, I will be accused of avoiding liability and will still have to pay.
It does make you question whether it was worth trying to better yourself during your lifetime.
We hope you have enjoyed reading this article. The future of our volunteer led, non-profit publication would be far more secure with the aid of a small donation. You can also support local journalism by becoming a friend of HIP. It only takes a minute and we would be very grateful.
Leave a Reply