What is social Care?

Social care supports people who can’t manage by themselves. It can help people with everyday tasks they can’t do on their own and makes sure they can take an active part in life. For example, people may need help to:       

• Continue living in their own home
• Get washed and dressed
• Going out and about and maintaining social contact

You may need social care because you are older or because you have an illness or disability which makes it more difficult to do certain things and look after yourself. You may be looked after by a family member or a close friend, or maybe by someone who is paid to look after you. You may also need somewhere safe to live.

People who need social care also often need healthcare, but healthcare is paid for in a different way. Healthcare is given to you free by the NHS.

What is ‘A Means Test’?

A means test is a way of deciding who should pay for the cost of people’s care, based on how much money they have. The means test is £23,250 at the moment. If you have more money than that, you will need to pay for any care you need. This is currently under review by the Commission on Funding of Care and Support and many changes have been recommended which will keep abreast and update our clients further.

Long-Term Care Needs

With greater life expectancies and greater morbidity rates, people are living longer, therefore reaching a point in their lives when they become unable to look after themselves properly or their own homes properly. People can have a diverse range of care needs, ranging from needing help with a few hours cleaning each week to chronic illness that requires ongoing treatment and constant care. With people living longer, the potential of larger long-term care costs is becoming increasing common.

The rising need for long-term care provision results from:

• Longer working lives
• Changes in the way people live
• Changes in working patterns

Economic conditions mean that people now need to work longer to maintain their standard of living, particularly in view of the decline in final salary pensions, the raising of the pension age and reduction in state support. In the past, different generations of the same family would tend to live either together or close by and if an elderly relative needed care in the home, a family member might often provide this care. Today, working people tend to be more geographically mobile than in the past and may move far away from their families as they seek to develop careers. There has been a fundamental change in working patterns and in relationships it is now common for both partners to go out to work. Modern working patterns mean that, even if the younger members of the family do not move away from their relations, there may be no one available in the home for a large part of the working week.

All in all, people need to start thinking about funding for later life and long-term care. The rules regarding these are likely to change as time goes by. For more information and advice on this, please don’t hesitate to get in touch.

If you would like to learn more about this subject or require Independent Financial Advice from our local, experienced and friendly team, please feel free to contact us on 01788 57 11 22.

The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. It does not constitute advice. All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor. 

PJL Financial Services Limited are authorised and regulated by the Financial Conduct Authority.