Loans for residential care for the elderly - to be repaid after death

By Helen Gradwell

Local councils will be able to lend money to elderly people for care - and get the money back when their homes are sold after they die. The measures will be in place from 2015.

The Dilnot Commission proposed these measures a year ago, allowing local authorities to offer a loan to pay for care in advance if individuals can't afford to without selling their homes. When the home is sold, usually after death, the council can get their money back - plus interest on the loan.

At the moment, 40,000 people sell their homes each year in order to pay for care. The Health Secretary, Andrew Lansley, said: "It is hard enough for people to come to terms with needing to pay for extra help when their circumstances change - whether their health has suddenly deteriorated or age has started to take its toll. The last thing people want to think about is having to immediately sell their home to pay for residential care."

Around a quarter of people can expect to pay nothing for social care, but half can expect costs of up to £20,000 and one in ten may expect costs of over £100,000, according to the Guardian. And with 1.5 million people currently aged 85 and over, social care is a tricky political issue.

There is also £200 million for housing projects intended to adapt houses for elderly people - and the NHS will transfer £300 million to local councils to help 'integrate' health and social care services.

Image © godfer - Fotolia

Tags: loans, elderly, care, care homes, property, equity, government

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