Chestnut Financial Services

Chestnut Financial Services, Financial Advisers

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Chestnut Financial Services, Financial Advisers
Social care reform advice from Ian Francis, Independent Financial Adviser
Social care reform advice from Ian Francis, Independent Financial Adviser

Social care reform news

- But what does it mean for everyday people?

The government published proposals last year to reform how we pay for social care - that's the care not paid for by the NHS, whether by yourself (as a self-funder) or with a contribution from the Local Authority.

  • "Care costs" relates to paying for "components of any care package considered to be related to personal care".
  • "Daily living costs" relate to rent, food and utility bills, whether in a care home or living in their own home.

From October 2023, each Local Authority will open an account for those people paying care costs. No one will pay more than £86,000 for care costs. However, that limit of £86,000 only relates to care costs and not daily living costs. Only the money a local authority assesses a person as needing to spend on care will count towards the cap, so income from benefits will not be included in its cap on care costs.

The government says it will limit what it calls "daily living costs", at £200 a week, for life or until a person's assets are eroded far enough to qualify for Local Authority help.

- When do you qualify for Local Authority help for care costs?

From October 2023 the upper capital limit of your assets will rise to £100,000 and the lower capital limit will increase to £20,000. Anyone with assets above the upper limit will be expected to pay for their care themselves whereas people below the lower threshold will only contribute to their care costs as much as they can afford.

The changes mean that a lot more people will be paying far more towards the cost of care than they may have expected. If you want care in addition to that which the Local Authority assesses you for, such as longer visits in your home, amenities in your care home, or a better quality room, none of this will count towards the care cap.

- When does the Local Authority step-in for living costs?

The Local Authority will only step in, from October 2023, towards your living costs, if you have no assets left or can only make a partial contribution - provided you haven't intentionally deprived yourself.

Social Care Reform Advice Photo of Farley the Labrador
A warm welcome from Farley
What's on your mind? Let's talk...

We offer a free, no-obligation, initial telephone consultation for new clients to answer some initial questions and help you with some first steps.

After that, we will then ask if you would like to set aside more time at a good time of day for you, when we can meet in person (with or without Farley), on video, or by phone, whichever is most convenient for you.

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What it means to be SOLLA accredited

Clients requiring financial planning in their later life benefit from advice that is clear and concise. Such advice comes from an adviser that is suitably qualified and experienced to advise them and manage their financial planning.

We have been advising clients on long term care solutions for several years now, backed up not just by professional qualifications but also by the membership of various professional bodies, most notably the;

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What our clients have said

"We had planned to spend money to get more support from the Local Authority, by buying funeral plans.

Ian took the time and trouble to explain what was happening next year to care fees as well as what was happening this year with the regulation of funeral plans.

His advice was sound - he put us and the way we wanted to enjoy our lives first.

We really appreciated Ian's time and advice and wouldn't hesitate to recommend others speak with him."

Peter, Grantham

Important Information

Please note, that not all care fees advice is regulated by the Financial Conduct Authority

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Chestnut Financial Services Limited

2a Sadler Court, Lincoln, LN6 3RG

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The guidance and/or advice contained within this website is subject to the UK regulatory regime. It is therefore targeted at consumers based in the UK. Chestnut Financial Services Limited. Registered in England no 9918363, 2a Sadler Court, Lincoln, LN6 3RG. Authorised and regulated by the Financial Conduct Authority.