Transcript CARE ACT SEMINAR - Welcome • NELCCG

CARE ACT SEMINAR
CHARGING
Correct as at March 2015
PURPOSE OF THIS SESSION
• To give an overview of the new charging
regulations under the Care Act
• For staff/other people in the sector to have a
basic level of understanding of the charging
regime in North East Lincolnshire
• The importance of Adult social care debt
recovery & income maximisation
CURRENT CHARGING FRAMEWORK
• Charging for residential accommodation guide
(CRAG) is the current framework for residential
charging
• Fairer Contributions is the current framework
for domiciliary charging
• Deferred Payments are offered for client who go
into care and own a property. This is currently
an “interest free loan”
KEY CHANGES TO CHARGING FROM
APRIL 2015
• The legal basis for charging falls under The Care Act
2014 Care and Support Statutory Guidance
• CRAG & Fairer Contributions cease to exist from
31/03/2015
• All clients must be financially assessed as individuals.
• A light touch financial assessment can be offered
where appropriate
KEY CHANGES TO CHARGING FROM
APRIL 2015
• Carers Services can now be charged for under the
Care Act
• Domiciliary Service users can now be charged from
the start of service rather than the date a financial
assessment takes place
• Interest can now be charged from day 1 of a
Universal Deferred Payment along with an admin fee
• Admin fees can be charged for arranging care and
support for a domiciliary care self funder
KEY CHANGES TO CHARGING FROM
APRIL 2015
• Service Users must be informed that they
have the right to seek Independent Financial
Advice and this should be facilitated for
them if they are unable to arrange this for
themselves.
WHAT DOES THIS MEAN IN NEL?
• New charging policy from April 2015 which covers all adult
social care charging
• There will be changes for Services Users and how they are
financially assessed
• April 2015 policy will only be valid for 1 year due to the 2016
reforms
• Changes have been recommended to the Council in order to
have a sustainable charging framework
• Due to the financial climate, Adult Social Care debt recovery
must be applied more vigorously
UNIVERSAL DEFERRED PAYMENT
AGREEMENTS
A Universal Deferred Payment (UDP) is where someone opts to accrue the difference
between their client contribution and the full cost of care by having a legal charge placed
against their property.
From 1st April 2015, a UDP will be offered to:
•
anyone whose needs are to be met by the provision of care in a care home. This is
determined when someone is assessed as having eligible needs which NELC decides
should be met through a care home placement.
•
anyone who has less than (or equal to) £23,250 in assets excluding the value of their
home (i.e. in savings and other non-housing assets); and
•
anyone whose home is not disregarded
*All 3 of the above requirements must be met
A deferred payment will be offered to someone meeting the criteria governing eligibility for deferred
payment agreements (DPAs) detailed above who is able to provide adequate security for the debt.
UNIVERSAL DEFERRED PAYMENT
AGREEMENTS
North East Lincolnshire Council may refuse a deferred payment agreement despite
someone meeting the eligibility criteria, where:
a) NELC is unable to secure a first charge on the person’s property;
b) someone is seeking a top up; and/or
c) a person does not agree to the terms and conditions of the agreement
Deferring further amounts will cease when a person has reached the “equity limit”
that they are allowed to defer; or when a person is no longer receiving care and
support in a care home. This will also apply when the value of the security has
dropped and so the equity limit has been reached earlier than expected.
ASC DEBT RECOVERY
Under the new charging policy, the Council is committed to
recovering monies owed for services received.
The process will become more fluent and debts will be actively
monitored and pursued by focus and solicitors where appropriate.
All income collected goes back into the Adult Social Care pot so the
more income collected, the more sustainable the system becomes
and the more the local community will benefit. Income collection is
key due to our ever shrinking budgets.
PROGRESS SO FAR……..
• A scrutiny Group of Members have reviewed the draft new
charging policy and the proposals put forward by Officers.
• The new charging policy and proposals have been out for
consultation with service users and the general public. A report
of findings is now being prepared for the council members.
• Information is being prepped to better inform people of the
charging regime under the Information and Advice Workstream.
• Policies will start to be updated once we have a final decision
from the Council’s Cabinet.
• New Deferred Payment Policy and Agreement has been drafted.
PROGRESS SO FAR……..
• Local and national information on Independent Financial
Advisors will be provided via Services4Me Website.
• New versions of the ContrOcc system (financial system
used for adult social care) are being tested in order to
make changes to the financial assessment process and
calculate the interest rate for Universal Deferred
Payments.
• Briefing sessions for staff to keep them updated on the
changes to systems.
KEY CHANGES TO CHARGING FROM
APRIL 2016
• We are still awaiting the guidance from the
Department Of Health however, we
anticipate a large number of changes from
April 2016 in relation to the way in which
people are assessed as having to contribute
towards their care and support needs.
FUNDING REFORMS – WHAT WE WERE TOLD
IN OCTOBER 2014
The principles of the Dilnot Commission’s recommendations to protect people from potentially huge costs
if they develop very complex care needs, such as dementia, have been accepted and will be implemented
from April 2016.
A cap on reasonable care costs
People of state pension age receiving care which has
cumulative value of £60k (equivalent to £72k in 16/17)
will be entitled to state support for reasonable care
costs to meet their eligible needs.
People of working age who develop eligible care needs
before retirement age will benefit from a cap that is
lower.
New financial protection for those with modest wealth
Those with £100,000 or less ( £118 in 16/17 prices) and
who own their own home will receive financial support
for residential care.
Most financial support will go to those with the greatest
care needs and the least in savings and home value.
This will help them pay towards the cap. The poorest
people will continue to have the majority of their care
paid for.
Young people who are assessed before they turn 18 as
having on going eligible needs will benefit for a cap set
at £0
New contribution towards general living costs for people in residential care
People in residential care will make a contribution towards the costs that they would have to meet if they were
living in their own home – such as on food, energy bills and accommodation. The government has suggested this
will be set at around £12,000 a year from April 2016.
FUNDING REFORMS – WHAT WE THINK NOW
WE HAVE THE DRAFT GUIDANCE
A cap on reasonable care costs
People aged 25+ receiving care which has cumulative
value of £72k will be entitled to state support for
reasonable care costs to meet their eligible needs.
Young people who are assessed before they turn 25 as
having on going eligible needs will benefit for a cap set
at £0
New financial protection for those with modest wealth
Those with £118,000 or less and who own their own
home will receive financial support for residential care.
Most financial support will go to those with the greatest
care needs and the least in savings and home value.
This will help them pay towards the cap. The poorest
people will continue to have the majority of their care
paid for.
Initial increase for working age adults in April 2016
followed by phased increases to reach parity with the
minimum income guarantee for people of Pension
Credit qualifying age. (Better off by £50 a week)
New contribution towards general living costs for people in residential care
People in residential care will make a contribution towards the costs that they would have to meet if they were
living in their own home – such as on food, energy bills and accommodation. The government has suggested this
will be set at £230 a week and is a national rate.
2016 CHANGES………
• So far the 2016 reforms have not been finalised.
• The Department of Health are currently out to
consultation on the new proposals due on 1st April
2016.
• North East Lincolnshire will be responding to the
consultation.
• Be aware that the information given today is not set
in stone and subject to change.
CHALLENGES/BARRIERS
• Timescales – Consultation, Cabinet Approval
and roll out of new policy.
• In-depth training for the financial assessment
team.
• Service Users understanding the changes to
the financial assessment process.
• These policy changes are only valid for 1 year.
• Increased workloads due to the 2016 reforms.
WHAT DOES THIS MEAN TO ME AND
MY ROLE?
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All staff and partners need a greater understanding of what services are
charged for and how the process works.
Inform Service Users of the process and the implications of not paying their
contributions.
If you know someone isn’t paying their contribution, use every opportunity
to talk to them about this.
Encourage Service Users to have an assessment – in most cases this
reduces the client contribution payable.
Signpost people to Information & Advice available (inc. Independent
Financial Advice).
Early intervention is key to reducing the Adult Social Care debt position.
If someone is struggling with their money let us know and we will try and
help.
What are your thoughts
on your role?
TO SUMMARISE
• New charging regime to apply from April 2015
• One policy to cover all Adult Social Care charging.
• Service users must be informed of their right to
seek Independent Financial Advice.
• Information on charging and debt recovery must be
given in order to manage expectations.
• More changes in relation to Adult Social Care
Charging to come in April 2016.
Presented by:
Sarah Hawker
Head of Business Development & Client Finance
(FOCUS)
For further comments / queries:
[email protected]