The importance of long term care (LTC) insurance has been highlighted following the Department of Wo...
The importance of long term care (LTC) insurance has been highlighted following the Department of Work and Pensions' decision to pass Residential Accommodation Allowance (RAA) straight to social services rather than the elderly towards their care costs.
The £63.30 RAA is used to pay for care costs following the initial 12 weeks until a property is sold. It is paid through Income Support when a care home resident selling their property has additional assets of less than £16,000 and needs help with independent care home funding. The removal of this benefit will hit those who pay for their own care the hardest.
Laura Philips, care fees advisory services at Help the Aged, said: 'Entering care in a residential home is a potent-ially distressing time for all concerned. It can also be a financial bombshell, particularly as the care system often leaves residents short changed.'
However, many elderly people are failing to claim benefits they are entitled to ' missing out on a total of £1m in unclaimed benefits according to Age Concern in Scotland, which has launched 'Your Rights Week,' a campaign aimed at encouraging elderly people to claim their benefits.
Maureen O'Neill, director of Age Concern Scotland, said: 'We are appealing to older people to claim the cash they are rightfully entitled to. If single older people have less than £98 per week, or couples have less than £150 per week, and have no more than £12,000 in savings, we urge them to contact the Department of Work and Pensions' free claims line to receive their entitlement. With increases to benefits coming into effect, it is now likely that older Scots are entitled to extra money, and it would be a shame to miss out.'
O'Neill also highlighted the need for claiming income guarantee. She added: 'While we welcome the increase in the minimum income guarantee, it is clear that it is still not claimed by everyone who should be getting it. If the level of the retirement pension had been increased, it would have benefited almost every person of pensionable age with the minimum of administration costs'.
Contact the Department of Work and Pensions on 0800 028 11 11.
