Many of us face difficult and complex decisions when it comes to caring for our ageing parents.

A common concern is whether we might be held financially responsible for our parents’ care home fees. This question can weigh heavily, especially when we want to ensure our loved ones receive the best possible care, a desire that may compete with our own financial responsibilities.

With the announcement in late July 2024 that Labour has scrapped the care cap of £86,000, you may wonder what this means for you.

Social care charging reforms

An independent commission led by economist Sir Andrew Dilnot conceived the care funding reform agenda thirteen years ago. The key reforms were the basis of the Care Act 2014, but their implementation was delayed from 2016 to 2020 and subsequently scrapped by Theresa May’s government in 2017.

Here’s a short summary:

1. Lifetime Liability Cap: One of the key reforms was to put an £86,000 cap on people’s lifetime liabilities for their personal care. This cap would be based on the amount the person’s council would pay for meeting these needs. If a person receives means-tested support, only their individual contributions would count towards the cap.

2. Section 18(3) of the Care Act 2014: This section enables self-funders to request that their council arrange a care home placement for them. This means they could benefit from the typically lower rates councils pay for care, compared with private payers (the so-called ‘self-funder subsidy’). This ensures that the costs counting towards the cap are those that the person actually pays.

3. Fair Cost of Care: Funding councils to pay providers a ‘fair cost of care’ was proposed to avoid making providers unsustainable due to the implementation of section 18(3) and the removal of the self-funder subsidy.

4. Raising Capital Thresholds: The upper capital threshold, above which people are charged for their care, was to be raised from £23,500 to £100,000, allowing many more people to claim state-funded support. The lower capital threshold, below which people make no contribution to their care from their assets, was to rise from £14,250 to £20,000. Both thresholds have been frozen since 2010 and seem set to remain so.

Recent developments

Boris Johnson’s administration revived the plan in 2021 but delayed the planned start date from 2023 to 2025 following concerns about councils’ ability to implement the changes.

Now, in July 2024, the reforms have been scrapped again, and no new measures have been introduced.

Understanding your responsibilities

First and foremost, it's essential to understand the legal framework surrounding care home fees.

In the UK, the responsibility for paying care home fees generally falls on the person receiving the care. Local authorities assess an individual’s financial situation, including their income and savings, to determine how much they must contribute towards their care costs.

However, there are certain circumstances where family members might feel pressure to contribute or even be legally required to do so. This typically happens if there is a financial shortfall and the local authority determines that family members have the means to assist.

While the UK does not have strict filial responsibility laws like some other countries, where children are legally required to support their parents financially, moral and emotional considerations can still exist. Many of us feel a deep sense of duty to support our parents, especially if they have given us a lifetime of love and support.

If you or a loved one is close to running out of money for care home or nursing home fees, start looking into funding sources several months before the money runs out.

When might you be asked to contribute?

In certain situations, family members might be asked to contribute to care home fees:

1. Voluntary Contribution: Families often choose to contribute voluntarily to ensure their loved ones receive a higher standard of care or additional services that the basic fees do not cover.

2. Gifting and Deprivation of Assets: If a parent has given away a substantial amount of money or assets to family members shortly before needing care, this can be viewed as deprivation of assets. The local authority might expect those assets to be used for care home fees instead.

3. Joint Assets: If you have joint financial assets with your parents, such as a joint bank account, these could be considered when assessing their ability to pay for care.

Protecting your finances

It's crucial to protect your financial stability when considering your responsibilities.

Here are some steps you can take:

1. Seek Professional Advice: Consulting with a financial advisor or a solicitor specialising in elder care can clarify and help you understand your rights and responsibilities.

2. Understand Local Authority Assessments: Familiarise yourself with how local authorities assess financial contributions towards care home fees. This knowledge can help you anticipate potential costs and plan accordingly.

3. Consider a Will: Encourage your parents to have an up-to-date will. A will can ensure their wishes are respected. A will is a vital part of estate planning. It also allows existing legal solutions for protecting assets to be used. If you’d like to know more, read our blog on tenancy in common and rights to reside.

Emotional Support and Self-Care

Caring for ageing parents can be emotionally challenging. It’s essential to seek support for yourself during this time. Whether through friends, support groups, or professional counselling, ensuring you have a support network can make a significant difference.

Conclusion

While the legal obligation to pay your parents' care home fees in the UK is limited, the emotional and moral considerations are substantial. Understanding the financial landscape, seeking professional advice, and ensuring your own financial protection are vital steps in navigating this journey.

Remember, it’s okay to seek help and support for yourself as you care for your loved ones.

The team at Carisma Wills is here to support you with empathetic and professional advice to help you and your family plan for the future. If you have any questions or need help, please don't hesitate to get in touch.

Your peace of mind is our priority.