Understanding Paid Care for Elderly Parents in NZ
While providing care for an elderly parent is a labour of love, it often comes with significant financial strain. The New Zealand government offers several pathways for family and whānau carers to receive compensation. These include direct income support and arrangements where the family caregiver is employed by a home support provider. Understanding the different schemes, eligibility requirements, and the process to apply is the first step towards receiving this crucial support.
The Supported Living Payment: Income for Carers
The Supported Living Payment (SLP) from Work and Income (MSD) is a weekly payment designed for individuals who are caring full-time for someone at home who would otherwise need residential care. It’s a form of income support, but crucially, there are specific conditions for who you can care for.
Eligibility for the Carer
- You must be caring full-time (more than 30 hours per week) for someone other than your spouse or partner.
- Your and your partner's (if applicable) income will be taken into account for the means test.
- The person receiving care must be assessed as needing full-time care.
Eligibility for the Person Receiving Care
- The elderly parent must be assessed by a health practitioner and certified as needing full-time hospital-level or residential care (or equivalent) at home.
- A medical certificate confirming the need for care is required as part of the application process.
Funded Family Care and Individualised Funding
In addition to income support, the government also allows family members to be paid directly for providing care, primarily through Funded Family Care arrangements. This requires a formal assessment and coordination process through a Needs Assessment Service Coordination (NASC) service.
The Process for Funded Family Care
- Needs Assessment: The elderly parent first requires an assessment by a NASC service to determine their support needs. For older adults, this often involves an interRAI assessment.
- Care Plan: The NASC and the family develop a care plan that specifies the type and amount of care required.
- Choosing a Carer: The person receiving care can choose a family or whānau member to provide the agreed-upon services.
- Employment Arrangement: The family carer is then employed by a Home and Community Support Service provider to deliver the services outlined in the care plan. This means they receive regular wages, sick leave, and annual leave, with the provider handling the administrative and payment aspects.
- Individualised Funding: Some NASC agencies offer Individualised Funding, which gives the client more control over their care budget, including hiring and managing their chosen carers.
The Carer Support Subsidy for Respite Care
Beyond direct payment for care, the Carer Support Subsidy is another important financial tool. This is a payment provided by Health NZ to help cover the costs of a temporary support person, giving the primary full-time carer a much-needed break.
Key Aspects of the Carer Support Subsidy
- Purpose: The subsidy is specifically for respite, allowing the primary caregiver time out for their own well-being.
- Flexibility: Carers receive an annual budget based on their needs assessment, which they can use flexibly. For example, they can pay a family member or friend for relief care, or use it for day care or short-term residential care.
- Eligibility: It is available for full-time carers (more than 4 hours a day of unpaid care) of someone with an age-related disability or chronic health condition.
- Process: The amount is determined during a NASC assessment, and claims are made directly to Health NZ.
Comparison of Financial Support Options
| Feature | Supported Living Payment | Funded Family Care | Carer Support Subsidy |
|---|---|---|---|
| Payer | Work and Income (MSD) | Home Support Provider (via Health NZ funding) | Health NZ |
| Payment Type | Weekly income support for the carer | Hourly wages for care services rendered | Respite subsidy for covering relief care costs |
| Cared For (Exclusion) | Cannot be a spouse or partner | No exclusions based on relationship | No exclusions based on relationship |
| Eligibility Criteria | Means-tested; full-time care for someone needing residential-level care | NASC assessment determines eligibility; family member must be employed by a provider | Annual budget based on NASC assessment for respite needs |
| Tax Implications | Varies based on individual circumstances, may affect other benefits | As an employee, income is taxable | May be subject to tax, depending on how it's used |
| Application Process | Apply through Work and Income (MSD) | Involves a NASC assessment, a provider, and employment agreement | Requires NASC assessment and claiming through Health NZ |
Navigating the Application Process
To begin, the first and most critical step is for the elderly parent to undergo a needs assessment. This can be initiated by contacting your local Needs Assessment Service Coordination (NASC) service or talking to your GP. The NASC service will evaluate the level of care required and determine the appropriate funding streams. They can also explain the options and connect you with the right home support providers or Work and Income services.
Steps to get started:
- Contact a NASC: Reach out to the Needs Assessment Service Coordination agency in your district to book an assessment. Your GP can help with this referral.
- Complete the Assessment: An assessor will visit to determine the care needs of your parent and discuss potential support options with you and your family.
- Explore Options: Based on the assessment, discuss the possibility of Funded Family Care with the NASC and potential providers. Simultaneously, investigate the Supported Living Payment with Work and Income if your situation qualifies.
- Manage Tax and Benefits: Be aware that receiving payments may affect your tax obligations and eligibility for other benefits. The Inland Revenue Department provides guidance on tax for carer support payments.
Remember to advocate for both your parent's needs and your own well-being throughout this process. You can find excellent resources and further support from Carers NZ.
Managing Your Well-being as a Carer
Providing care can be incredibly demanding, and it is vital to look after your own mental and physical health. The Carer Support Subsidy is designed specifically to help fund breaks, but other resources are available.
- Support Networks: Connect with other carers through organisations like Carers NZ. Sharing experiences and advice can be a powerful tool against burnout.
- Emergency Planning: Have a contingency plan in case you are unexpectedly unable to provide care. Organisations like Carers NZ can help you create one.
- Self-Care: Prioritise your personal well-being. Even short breaks can be crucial for recharging and sustaining your caring role for the long term.
Conclusion
It is possible to receive financial compensation for caring for an elderly parent in New Zealand, but the process involves navigating specific government programmes and eligibility criteria. By undergoing a formal needs assessment through a NASC service, you can determine if you qualify for the Supported Living Payment or a Funded Family Care arrangement. Additionally, the Carer Support Subsidy offers crucial funding for respite care, providing financial help to ensure caregivers can take necessary breaks. With the right information and support, you can secure the assistance needed to continue providing care for your loved one while also managing the financial realities of your role.
