What happens to the elderly with no money in the UK?: The support system explained

According to Age UK, hundreds of thousands of pensioners are missing out on Pension Credit, a key benefit for those with low incomes. For the elderly with no money in the UK, a robust system of state-funded care, benefits, and charitable support is available, but access depends on assessments and eligibility.

Quick Summary

The UK offers support for older people with limited or no savings through local council care funding, non-means-tested disability benefits, and means-tested pension supplements. Key steps involve a care needs assessment followed by a financial assessment to determine the level of assistance provided.

Key Points

• Needs and Financial Assessments: To access council-funded care, the elderly must undergo a care needs assessment followed by a financial assessment to determine how much, if anything, they need to pay.

• Council Funding Thresholds: In England, older people with savings below £23,250 may receive full or partial council funding for care, with varying thresholds in Scotland and Wales.

• Access to Key Benefits: Even with no money, eligible elderly individuals can receive Pension Credit to top up their income and Attendance Allowance for personal care needs.

• Options for Homeowners: Homeowners with limited savings but needing residential care can utilise a Deferred Payment Agreement to use their property's value to pay for fees later.

• Charitable and Emergency Support: Organisations like Age UK, Independent Age, and Friends of the Elderly provide grants, befriending services, and other vital support for vulnerable older people.

• NHS Continuing Healthcare: Individuals with severe, complex health needs may qualify for free, fully funded NHS care that is not means-tested.

Accessing social care: Needs and financial assessments

For an older person with no money, the primary route to care and support is through their local council's adult social services. This process begins with a free care needs assessment to determine if they meet national eligibility criteria for care. If eligible, a financial assessment is conducted to determine their contribution to care costs.

How the financial assessment works in England

Individuals with capital below £14,250 typically have care costs paid by the local authority, with potential contributions from income. For those with capital between £14,250 and £23,250, funding is partial, requiring contributions from both income and a 'tariff income' from savings. If capital exceeds £23,250, individuals are considered 'self-funders', though they can reapply for council funding if their money runs out. The assessment considers income, savings, and assets, often including the value of a home unless specific exemptions apply.

Residential care and Deferred Payment Agreements

Elderly individuals needing care home placement but lacking immediate funds may be eligible for a Deferred Payment Agreement (DPA) if they own their home. A DPA allows the council to cover care costs temporarily, which are repaid later from the sale of the property, often with interest.

Comparison of care funding options for the elderly

Feature	Council-Funded Care	NHS Continuing Healthcare (CHC)	Deferred Payment Agreement (DPA)
Funding Source	Local Council	National Health Service (NHS)	Loan from Local Council
Eligibility Basis	Means-tested (financial) and needs-tested	Health-based needs only (not means-tested)	Needs-tested, plus asset requirements (owning a home)
Covered Costs	Social care (personal care, daily tasks)	Full cost of care (health and social)	Care home fees, repayable later
Key Requirement	Savings below the upper capital limit (£23,250 in England)	'Primary health need' assessment by NHS	Long-term care in a care home and owning a property
Best Suited For	Elderly with low income and assets needing social care	Individuals with severe, complex health needs	Homeowners needing to pay for residential care but lacking cash reserves

Key benefits and allowances for low-income pensioners

Older people with limited or no savings can claim several benefits:

• Pension Credit: Tops up low weekly income and provides access to other benefits.
• Attendance Allowance: Non-means-tested benefit for care needs due to illness or disability for those over State Pension age.
• Housing Benefit: Helps with rent for those on low income.
• Winter Fuel Payment: Annual payment for heating costs.
• Warm Home Discount: One-off electricity bill discount.

Charitable support and additional resources

Various charities offer support beyond government aid, providing grants, befriending services, and advice.

• Age UK: Offers free information and advice on benefits and care.
• Independent Age: Provides advice and a friendship service.
• Turn2Us: Features a tool to find charitable grants.
• The Silver Line: A 24/7 helpline for older people.

Conclusion

A safety net exists for elderly individuals in the UK with no money, primarily through local authority social care and DWP benefits. The process starts with a council needs assessment, potentially leading to funded care based on a financial assessment. Benefits like Attendance Allowance and Pension Credit provide crucial financial support. Charities also offer valuable advice, grants, and companionship. Seeking information and completing assessments is essential to access available support, with resources from the NHS, Age UK, and Citizens Advice available to help.

How to get started

1. Request a Care Needs Assessment: Contact your local council's adult social services.
2. Apply for Benefits: Check eligibility and apply for Pension Credit and Attendance Allowance.
3. Explore Charity Grants: Use tools like Turn2Us or contact relevant charities.
4. Consider a Deferred Payment Agreement: Discuss this with your local council if you own your home and need residential care.
5. Utilise Helplines: Contact Age UK or The Silver Line for advice or support.

Frequently Asked Questions

What is a care needs assessment?

A care needs assessment is an evaluation conducted by the local council's social services to determine an elderly person's daily care needs. This is the first step to accessing local authority support and is free for everyone, regardless of their financial situation.

Will the council pay for a care home if an elderly person has no savings?

Yes, if an elderly person has savings below the specified threshold (currently £23,250 in England) and meets the eligibility criteria through a needs assessment, the local council can fund all or part of their care home fees. Different thresholds apply in Scotland and Wales.

What is Pension Credit and who is eligible?

Pension Credit is a means-tested benefit for people over State Pension age who are on a low income. It tops up a person's weekly income to a guaranteed minimum level and can act as a 'gateway' to other benefits.

What if an elderly person owns their home but has no savings?

If they own their home and need residential care, they can apply for a Deferred Payment Agreement (DPA) from the local council. The council will pay the care fees, which are then repaid from the home's value after it is sold.

What is Attendance Allowance and is it means-tested?

Attendance Allowance is a non-means-tested benefit for people over State Pension age who need help with personal care. Eligibility is based on the level of care or supervision required, not on income or savings.

How can charities help the elderly with no money?

Charities like Age UK, Independent Age, and Friends of the Elderly offer support such as benefits advice, small grants for essential items, and befriending services to combat loneliness and provide a lifeline for older individuals.

What is NHS Continuing Healthcare and does it cost anything?

NHS Continuing Healthcare (CHC) is a package of care for individuals with complex, ongoing health needs. It is fully funded by the NHS, meaning it is not means-tested and is provided free of charge.