New consultation paper outlines State's contribution to nursing care fees
A new consultation paper on the plans for free nursing care has received a mixed response from providers and IFAs in the long term care (LTC) sector.
Draft guidelines and directions concerning the implementation of free nursing care are up for scrutiny during a four-week consultation period, before the plans are implemented in October.
Jacqui Smith, health minister, said: 'This new system will benefit around 35,000 people who are paying for their nursing care from their own funds. With the implementation of free nursing care, these individuals could stand to save up to £5,000 per year.'
The plans propose that people who need nursing care will be put into one of three bands that will entitle them to £110, £70, or £35 per week in support from the NHS.
Paul Bennett, long term care marketing manager at PPP Lifetime Care, said: 'This announcement brings long-awaited clarity to the issue of funding LTC as it puts a ceiling on State contributions (in England) towards nursing costs in nursing homes of £5,000 for each self-funding elderly person per year. It also confirms the need for IFAs to include LTC planning in their discussions with clients.'
However, Bennett also notes that within the three bands of nursing care proposed, a large number of nursing home residents will receive considerably less than £5,000 in annual support.
Bennett said: 'Residents with dementia are likely to fall into the lowest band due to their care needs being more for personal care and supervision. Most importantly, and from a protection viewpoint, the average cost of a nursing home is £19,604, and people with assets in excess of £18,500 will still have to fund around £15,000, if not more, to cover personal care and accommodation in a nursing home.'
Sandy Johnstone, retirement and protection strategy manager at Norwich Union, said the consultation paper still leaves a number of issues unanswered, and IFAs need to exercise caution when discussing LTC with clients. 'In a sense it is good news because people will be paying less than they are at the moment, but people can never find out how much they qualify for until they need to move into a nursing home. IFAs should not assume the client will receive the full £110,' she said.
Another concern is that the assessments will be carried out by nurses which could be costly. Phillip Spiers, partner at the Nursing Home Fees Agency, said: 'It looks as if it could be more political than useful. It is a way of appeasing the recommendations of the Royal Commission.'
