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UK Plans Loan Program to Help Elderly With Care

Wed, 07/12/2000 - 12:00am — Karen Stevenson
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The Financial Times reports that plans to allow councils to "lend" elderly people the cost of their long-term residential care, secured against the value of their homes, are being drawn up by ministers. Councils would meet the cost of the care then claim the money back from the person's estate. Ministers are also planning to allow three months of state-funded residential treatment before people would be forced to use the assets from their home to pay for the cost of care. Ministers hope this "property disregard" will act as an incentive to the elderly to give up National Health Service beds because they know they would not be charged for short-term care of up to three months.

Round-the-clock nursing home care costs about £330 a week and accommodation can be £200. Under plans to be set out in the white paper "Quality, Choice, Fairness - better services for the elderly" the government will meet the nursing costs of treatment but not the residential or "hotel" component of their care. Alan Milburn, the health secretary, has been negotiating the cost of this policy with the Treasury.

The Financial Times reports that plans to allow councils to "lend" elderly people the cost of their long-term residential care, secured against the value of their homes, are being drawn up by ministers. Councils would meet the cost of the care then claim the money back from the person's estate. Ministers are also planning to allow three months of state-funded residential treatment before people would be forced to use the assets from their home to pay for the cost of care. Ministers hope this "property disregard" will act as an incentive to the elderly to give up National Health Service beds because they know they would not be charged for short-term care of up to three months.

Round-the-clock nursing home care costs about £330 a week and accommodation can be £200. Under plans to be set out in the white paper "Quality, Choice, Fairness - better services for the elderly" the government will meet the nursing costs of treatment but not the residential or "hotel" component of their care. Alan Milburn, the health secretary, has been negotiating the cost of this policy with the Treasury.