Report on the financial implications of being a user of community care services

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‘Many people pay for their own community care services through benefits, income or savings’ (Sharkey P, 2000 p41). Provide a report on the financial implications of being a user of community care services’* Provide a brief outline of the relevant welfare benefits that may be available to service-users.* Consider the potential financial implications of being a service-user.

* Consider current charging policies.Word Count: 1097Assessment task part A. Report on the financial implications of being a user of community care services.There are three categories of benefits:* Means Tested, which are dependent on income, capital and savings.

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These include Income Support, Pension Credit and Housing Benefit.* Earnings Replacement, which includes Incapacity Benefit, Sick Pay and Maternity Pay.* Disability Related, which helps to compensate the cost of the disability such as Disability Living Allowance, Attendance Allowance and Carers Allowance.Welfare benefits available to service users.

Tax Free / Non -means tested.Disability Living Allowance is for people under the age of 65, who require help getting around or looking after themselves, because they are ill, disabled or terminally ill, and, likely to need this help for at least another six months after applying. There are two components, the care component and the mobility component. Some people get both, while others may get one.

There are also different rates for both components.Care Component. If the disability is severe enough to need help with washing, dressing, eating or communicating this can be paid. There are three rates for this component depending on how the disability affects them.

The higher rate is payable to those who require help with personal care day and night, or for those who are terminally ill.The middle rate can be payable to those who meet either the day or night condition.The lower rate can be payable if they need help or supervision for some of the day or are unable to prepare a cooked main meal.Mobility Component is for those that have severe disabilities such as walking difficulties, even when using equipment that is usually used.

The higher rate is paid to those who are unable to walk or virtually unable to walk.The lower rate is for those that need guidance or supervision out doors.Attendance Allowance is for those over the age of 65 who need help with personal care because they have been physically or mentally disabled for six months. There are three ways to qualify for this.

* Body Care for those needing help with bodily functions. During the day this needs to be frequently and prolonged during the night.* Supervision is for those who need someone to watch over them to make sure they do not come to harm. By day this needs to be continual and prolonged by night.

* Special Rules are for people who are terminally ill. They do not have to show any care or supervision needs.The higher rate is for those needing care and supervision both day and night and the lower rate if just day or night.Carers Allowance is to help a person who looks after someone who is disabled.

You do not have to be related, or live with, the person you care for.You can qualify for this if the person you care for receives Attendance Allowance, or the middle or higher rate of the Disability Living Allowance care component.Means Tested BenefitsThese types of benefits are paid to people to help keep their income levels above the poverty line and will often top up other benefits.Financial implications of being a service user.

A carers allowance can have an effect on other benefits; therefore, it is important to check whether claiming this is the best option for both the carer and the service user. This cannot be paid at the same time as other benefits such as Incapacity Benefit and Retirement Pension, but will receive the one that pays the highest.Time spent in hospital can reduce the amount of benefit a person can get. Some of these such as the Disability Living Allowance both the care and the mobility component and the Attendance Allowance stop being paid while the person remains in hospital.

Another complication for the care component and the Attendance Allowance is that time spent in residential or nursing care can also be linked with stays in hospital unless the person has at least 29 days at home in between.Means tested benefits like Pension Credit and Income Support can also be affected. This is because of the severe disability amount or premium. This is an amount that is included for those that get Disability Living Allowance, care component, or Attendance Allowance.

If these benefits stop being paid then the means tested benefits can also reduce. Some may lose their means tested benefits altogether.Carers Allowance can also be affected because if the person stops getting care component or Attendance Allowance then the carers Allowance also has to stop. This could affect means tested benefits that the carer gets.

Current charging policiesThe NHS and Community Care Act (1990) came into force in 1993, which introduced changes to community care legislation. The National Assistance Act (1948) stated that the Local Authority has a duty to charge for residential care and gave them powers to charge for domiciliary care. However, the Health and Social Services and Social Security Adjudications Act (1983) stated that the charges for home care must be reasonable and take into account the circumstances of individuals. Government guidance also instructs Local Authorities to allow the service users to keep a basic level of protected income and should only contribute to the cost of their home care if they have income above this level.

The basic principles of charging are a flat rate to be made for the first 8 weeks on a temporary stay in residential care and that the cost of permanent care is subject to a means test. If an individual has a capital over �21,500 they pay the full charge, but should be left with a total of �20.45 per week for personal expenses. A less dependent resident is able to keep more personal allowance.

There is some income that is disregarded when working out how much someone should be paying for their care. This includes:* Disability Living Allowance (mobility component).* Savings Credit up to �5.25.* Disability Living Allowance (Care component) and Attendance Allowance but only if you are a temporary resident.* Half of the personal or Occupational Pension if this has been passed to a spouse.* The value of a former property but only during a temporary stay, and for 12 weeksfor a permanent stay.There are some services that cannot be charged, these include those that are provided under Section 117 Mental Health Act 1983, NHS and continuing care, equipment, Minor adaptations and services to those that are CJD sufferers.As we have seen the benefits system is a very complicated system and there is not enough information about the each benefit and which ones interlink.

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Report on the financial implications of being a user of community care services. (2018, Jan 04). Retrieved from

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