Local Authority Funding
Entitlement to a local authority funded placement in a care home is for applicants with less than a pre-determined value of personal assets, known as the ‘upper capital limit’ (£24,750 in 2012/13).
For those applicants in this position the local authority will assess their regular weekly income from all sources and will calculate their personal contribution to their care fees out of this income. The local authority will then augment this personal weekly contribution up to the level of the ‘Council Approved Rates.’ For the year 2013/14, the council approved rates are £580.11 per week for nursing care and £499.38 per week for residential care. The council’s contribution is paid directly to Newark Care.
In assessing the contribution that the individual must make, the applicant’s occupational and state pensions will be taken into account, as will the value of any benefits that he/she receives. The local authority will disregard personal assets up to the ‘lower capital limit’ (£15,500 in 2013/14). The value of any personal assets held between the two defined capital limits (i.e. £15,500 and £25,250) will be regarded as contributing to care home costs at the rate of £1 per week for every £250 (or part of £250) held in excess of the ‘lower capital limit’.
A Resident is entitled to retain a weekly allowance from their income (£23.90 in 2013/14) to pay for their personal expenses in the Home.
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Local Authority Placements
As a charity Newark Care’s primary purposes do not include the generation of profit. When setting our fee rate each year we aim only to cover the costs incurred in the running of our operation. We seek neither a profit margin nor a return on capital on the sums invested in the construction of our two purpose-built Homes.
In order to break-even Newark Care’s fee rate has to be set substantially higher than the local authority’s ‘Council Approved Rates’ for either residential or nursing care. So given the restrictions in Scotland on top-up arrangements, where local authority funding has been granted it is Newark Care’s Charitable Reserve Fund that makes up the shortfall in care fees.
The number of local authority funded clients that we can accept on admission is therefore limited and we can do so only when the applicant has been referred to us by the social work arm of Jewish Care Scotland. This is consistent with the charitable objects of Newark Care.
Migration from Self-Funding to Local Authority Funding
Following the admission of a Resident based on a self-funding arrangement, their personal assets may become depleted over time to the point where they may ordinarily be considered by the local authority as qualifying for full funding.
In such circumstances Newark Care will make every effort to continue to provide care to the Resident.