When it comes to caring for an elderly or unwell relative, there are plenty of things you need to consider. We've put together a guide to answer some of the most commonly asked questions.
Sections
- What kind of care do they need?
- The cost of hiring a carer
- Finding a carer yourself
- Checks you need to carry out
- Finding care through an agency
- Will my local authority pay for care
- Self-funding
- Care or residential homes?
- Will my relative need to sell their home?
- Help from the NHS
- Employing a carer: tax considerations
- Insurance
- State benefits
- Where to get help paying for care
What kind of care do they need?
When it comes to caring for an elderly or unwell relative, there are plenty of things you need to consider.
Is the person struggling to live independently? Does he or she need help with personal care such as going to the bathroom or day-to-day tasks, including dressing, buying groceries or collecting medications?
If you've never previously had a seriously ill relative, you'll no doubt have serious concerns regarding cost implications.
We've put together a guide to answer some of these most commonly asked questions.
How much does it cost to care for your elderly parents at home?
The cost of hiring a carer
Finding a carer yourself
The main advantage of this option is that you can make a personal decision as to who provides care, which may be your most important consideration.
However, this would make you an employer under UK law and employees have certain legal rights, which means you'll need to give them payments and set up an employment contract.
He or she may also be entitled to benefits, such as:
- Rest breaks;
- Maternity pay;
- Holiday pay;
- Sick pay;
- Maximum working hours;
- Redundancy pay;
- A workplace pension.
During the recruitment process, you may also need to advertise the position and write a job description.
Checks you need to carry out
You'll need to verify the carer's status to work in the UK.
You can ask to check a person's passport or other forms of ID to make sure they're from the European Economic Area or have a valid visa to work in the UK.
You'll most likely also want to make sure anyone you're employing doesn't have a criminal record.
You can obtain more information on these checks through the PVG checks website if you live in Scotland, or Gov.uk if you live anywhere else in the UK.
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Finding care through an agency
If you would prefer to avoid the difficulties involved in finding a carer yourself, you may find it easier to use an agency, which will handle all taxes and insurance.
An agency would also be responsible for conducting police checks.
Be aware, however, you won't have as much say in the person who provides the care and you'll also need to pay for the service.
Before contacting an agency, it's a good idea to have a clear view of exactly the type of care you need help with.
You should also ensure the agency is a member of the United Kingdom Homecare Association, which ensures agencies follow certain rules and regulations.
Will my local authority pay for care
Self-funding
Your relative will not be entitled to help towards the cost of social care if their savings exceed £23,250 or they own their own property, which only applies if they are moving into social care.
If their savings fall below the thresholds as a result of paying for their own care, they may then qualify for help from their local council.
If they need to cover the cost of funding their own care, there are a number of options you could consider, such as:
- Selling their property;
- Renting out their property;
- Releasing equity from their home;
- Asking for financial support from the family (your family's finances won't be taken into account when you are means-tested).
Remember, these are complex financial decisions that you and your relatives could later regret so you may want to seek independent financial advice.
Care or residential homes?
Will my relative need to sell their home?
Although they won't need to sell their home to pay for care in their own property, they may need to do so if they go into residential care – unless their partner continues to live in the property.
The deferred payment scheme could allow them to borrow money for a care home from the council if they have less than £23,250 in savings.
This will need to be repaid when they pass away or sell their home.
Help from the NHS
Employing a carer: tax considerations
If you employ a carer, you may be responsible for deducting tax and National Insurance from their wages and paying these to HMRC – though you may not need to do so if the carer earns below a certain amount.
You'll also need to register yourself as an employer with HMRC and set up a payroll.
If you fail to do this correctly, you could face hefty penalties or, in extreme cases, a criminal prosecution.
Should you have any questions about your tax obligations, there is a special section on the National Insurance website.
It's also a good idea to set up a contract of employment to ensure you are both clear in terms of the tax implications.
Insurance
If you employ a person to work in the home, you'll need to take out employer's liability insurance and public liability insurance.
These will cover you if your employee has an accident and is injured in your home.
Your policy will need to cover you for at least £5,000,000 and come from an authorised insurer.
If you employ someone to work in your loved one’s home and don't have proper insurance, you can be fined up to £2,500.
You can also be fined up to £1,000 if you fail to display your employer's liability insurance certificate.
State benefits
Something else to watch out for is ensuring that you receive all the benefits you're entitled to help with care costs.
These typically fall into four categories:
- Disability Living Allowance: if you're caring for a child under 16 who has difficulties that far exceed the needs of a child of a similar age, you may be entitled to between £23.30 and £148.55 per week;
- Personal Independence Payments: these are intended to help with the additional costs of having a long-term health condition if you are between 16 and state pension age. Your relative may qualify if they have needed help with everyday tasks for more than three months. The benefits fall into two categories: mobility component (up to £61.20 per week) and daily living component (up to £87.65 per week);
- Attendance Allowance: if the person you are caring for is over state pension age and needs help during the day and night, he or she may be eligible for this benefit at a lower rate of £58.70 per week and a higher rate of £87.65 per week;
- Carers Allowance: if you provide care to another person for at least 35 hours per week, you may qualify for the carers allowance of £66.15 per week.
To learn more, visit the Gov.uk website
Where to get help paying for care
If you have any questions about social care, there are a number of organisations that could provide support: