The economic crisis is prompting over 50s to delay their retirement and to seek work. In the past three months of 2022, there was a marked turnaround in those in their 50s and 60s moving out of inactivity and back into the workforce.
The Institute of Fiscal Studies said the squeeze on living standards caused by the highest inflation rate in four decades was the likely reason why more 50 to 64-year-olds were looking for work.
With an ageing population, the cost of care is a real concern for over 50’s – not only for their own future care costs, but the number of people in their 50s, 60s and 70s caring for elderly parents is increasing.
Only last week healthcare analysts LaingBuisson confirmed the cost of care in the UK had risen by almost 10 per cent in the past year to £41,600 a year for a residential care placement and £56,056 for a nursing home placement.
The increase in the cost of care means that many people in care will run out of funds, resulting in family members being asked to pay a top-up payment for loved ones' ongoing care costs.
Fully funded support
However, what many are unaware of is the availability of full financial support.
The NHS must pay the full cost of care fees for those who have significant ongoing healthcare needs. If a patient’s needs primarily fall under health (be they physical or mental), rather than social care, they are entitled to a free package of care paid for by the NHS called NHS continuing healthcare (CHC). Funding is not related to an individual’s wealth.
CHC is a vital source of funding for a number of individuals receiving long-term care as the NHS will pay the full cost of care. However, a lack of awareness of the funding scheme coupled with guidelines which are often forgotten or applied too restrictively, means more people could be eligible.
Despite an ageing population, NHS England figures show the number of people eligible for funding has dropped by 18 per cent in the past five years. There is also a clear postcode lottery, with people in the north of England more likely to receive funding than those in the south.
If families are unhappy with a decision, it can be challenged through the NHS appeals process.It is very important to check that an individual has been properly assessed for CHC by way of a multi-disciplinary team assessment. Every person needing long-term care because they are ill should be assessed by their integrated care board (ICB) in England or health board in Wales.
If a person is not the responsibility of the NHS, they are the responsibility of the local authority. However, unlike the NHS, the local authority is able to assess the individuals’ ability to pay. Currently in England, if a person has capital of more than £23,250 (£50,000 in Wales), they will have to meet the full cost of care.
CHC is often referred to as ‘fully funded care’ and is a package of care arranged and funded solely by the NHS. It can be received both in a private care home or at the home of the individual.
The full NHS funding is not based on a diagnosis of an illness, or the fact an individual is being well cared for. It is based on the type and amount of care someone requires to meet their needs.
Retrospective claims for unassessed periods of care can also be made if a person has been in care for some time or have since died with more than £400mn being paid out by the NHS in redress for past periods of care.
The impact of the cost of living crisis has no doubt impacted the security those approaching retirement felt towards their financial futures. For those approaching retirement and fearing the cost of care, this package could be a viable solution and eliminate the need to sell the family home. Unfortunately, it is often the case individuals are wrongly assessed; 30 per cent of those who should be eligible for fully funded nursing care are turned away.
However, if families are unhappy with a decision, it can be challenged through the NHS appeals process, which is a two-stage process, culminating in an Independent Review Panel.
Although challenging wrong assessments can be a time-consuming process, statistics from the Department of Health highlight that 22 per cent of challenges are successful at ICB level, and a further 30 per cent on a national level.
The impact of the cost of living crisis, as well as the difficulties of an ageing population, have no doubt impacted the security those approaching retirement felt towards their financial futures.
Nevertheless, there is support available for long-term care funding. NHS CHC should be at the forefront of options for funding future care for those who are eligible.
Lisa Morgan is a partner in the specialist nursing care team at Hugh James Solicitors
