Eight elderly people a day forced to sell home to cover care costs

26th September 2014

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Councils are forcing eight elderly people a day to use their homes to pay for long-term care costs, a Freedom of Information request has revealed.

The request, placed by NFU Mutual, shows councils are targeting properties to try and recoup care costs. At least eight people a day have a legal charge placed on their property in order to recoup the costs – since 2009, councils have placed legal charges on more than 15,000 properties around the country.

In some areas councils operate a deferred payment scheme that allows people to keep their home during their lifetime and from 2016 all council must operate this system as part of an overhaul of long-term care that will see costs capped.

The deferred payment scheme will ensure no elderly person has to sell their home to pay for care but the costs will have to be repaid on their death along with annual interest of 4%, eating away at potential inheritance.

Sean McCann, chartered financial planner at NFU Mutual, said: ‘None of us can know whether we’ll need care in later life or how much we’ll have to pay. Even the best financial plan won’t allow you to avoid some costs, but it can help increase how much you leave to your family.

‘There is no one-size-fits-all approach, but there are steps that can be taken to protect your savings. There is some very straightforward planning that can help, especially around pensions and inheritance tax, although with the constant changes to the rules you need to keep your eye on the ball the make sure you don’t pay more tax than you have to.’

Research by NFU found those aged between 45 and 64 were most concerned about old age care costs, with 51% citing this as a financial fear for the future. This was followed by changes to pension tax and reduced income from the death of a spouse or partner.

A fifth of people were worried about poor financial decisions and lack of planning.

 

1 thought on “Eight elderly people a day forced to sell home to cover care costs”

  1. Noo 2 Economics says:

    On the 5th of July 1948 3 laws came into force – the National Assistance Act to provide means tested non contributory monetary benefits. The National Health Service Act to provide comprehensive care free at the point of access for those OF ANY AGE suffering mental or physical disabilities or illness and the National Insurance Act to implement a tax on all those in employed work earning above a threshold amount to finance the provisions of the previous two Acts.

    The National Health Service Act was superseded in 1977 whereupon it was written that the State would only pay for services at it’s discretion, thus opening the door for this kind of chicanery.

    No consultation with the electorate was entered into. The Act was simply unilaterally implemented. A change this large required a referendum and without such, all National Insurance contributions attributable to health care MUST be refunded to the relevant contributors less costs of health care received. Then we can begin a FAIR system of health care.

    The fact that councils force the elderly to sell their homes to finance their care in old age which has already been financed through their life time National Insurance contributions IS A COMPLETE TOTAL AND UTTER RIP OFF!! SHAME ON YOU OBAMA FOR WANTING TO COPY SUCH A MORALLY CORRUPT, DISGUSTING AND THOROUGHLY DISREPUTABLE SYSTEM!!

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