Key Takeaways
- Over 1,000 families have been investigated by councils for suspected avoidance of care fees by giving away money or property to relatives.
- The number of investigations into deliberate deprivation of assets has increased in recent years, with 338 claims made in 2024-25, up from 275 the previous year.
- Councils are allowed to investigate care home residents who may have intentionally reduced their savings to qualify for financial support.
- The threshold for entitlement to care home fees paid by the local council is £23,500 in England, £35,000 in Scotland, and £50,000 in Wales.
- Care home fees have risen by a fifth in the past three years, now standing at £1,278 a week.
Introduction to Care Fee Avoidance
The issue of care fee avoidance has become a significant concern for local authorities in the UK. With the rising cost of care home fees, many individuals and families are seeking ways to reduce their financial burden. However, councils are cracking down on suspected cases of deliberate deprivation of assets, where individuals give away money or property to relatives to avoid paying care fees. According to data obtained through freedom of information requests, over 1,000 families have been investigated by councils for suspected avoidance of care fees.
The Investigation Process
When an individual enters residential social care, they can receive means-tested financial support from the council. However, if the council suspects that the individual has deliberately reduced their assets to qualify for financial support, they can launch an investigation. This can involve scrutinizing bank statements and property history to determine if the individual has intentionally reduced their wealth. If the council finds evidence of deliberate deprivation of assets, they can raise a claim and pursue the individual or their family for repayment. In some cases, councils have taken family members to court to force the sale of a property that was given away.
Case Studies and Examples
One example of a family affected by the investigation process is that of Jane James and her mother Rita Stewart. In 2022, Stewart sold her property and used the proceeds to buy a home for her grandson and his family. However, when Stewart went into care, the council launched an investigation and claimed that the sale of the property was a deliberate deprivation of assets. The family was issued with a backdated invoice of £23,000, which they were unable to pay. After a lengthy and stressful process, an independent review found that the council had failed to prove deliberate deprivation of assets, and the invoice was eventually withdrawn.
The Impact of Care Fee Avoidance
The issue of care fee avoidance has significant implications for individuals, families, and local authorities. With the rising cost of care home fees, many individuals and families are struggling to afford the financial burden. However, councils are facing an £8 billion funding gap by 2028-29, and are under pressure to recover costs from individuals who may have deliberately avoided paying care fees. The increase in investigations into deliberate deprivation of assets has led to concerns about the fairness and transparency of the system. Some argue that councils are making kneejerk reactions without asking the right questions, while others believe that individuals who deliberately deprive themselves of assets should be held accountable.
Conclusion and Future Directions
The issue of care fee avoidance is complex and multifaceted, involving questions of fairness, transparency, and accountability. As the cost of care home fees continues to rise, it is likely that the issue of deliberate deprivation of assets will remain a significant concern for local authorities. To address this issue, it is essential to ensure that the system is fair, transparent, and accountable, and that individuals and families are aware of the rules and regulations surrounding care fee avoidance. Ultimately, the goal should be to ensure that everyone has access to the care and support they need, regardless of their financial circumstances.
