Care Cost Left Pensioner On The Brink Of Bankruptcy

An elderly man forced to the brink of bankruptcy by his council’s demands for care home costs has forced a rethink of the way individuals’ assets are valued.

The public services ombudsman has told the Scottish Executive it must draw up clearer guidelines on the valuation of homes in calculating charges for care home costs, warning that its lack of clarity is having a serious effect on vulnerable individuals.

The issue was raised by a man in East Dunbartonshire, whose father signed over his property to his son, without payment, nine years before moving into a care home.

The council calculated the value of the house as part of the father’s assets, resulting in much higher care home costs.  Although the public purse is supposed to pay for care and nursing costs, individuals reckoned to have the means are still liable for the cost of renting their room and for food.

Council officials argued that, because the elderly man had signed his house over to his son without payment, the value of the home could be used to pay for care costs. The local authority went on to argue that, as he was 79 when the home changed hands, he was at an age when future care cost becomes an issue for most people.

But Professor Alice Brown, the ombudsman, argued only 4% of the population are in care homes or long-stay hospitals at that age. When the man needed to go into a home aged 88 the ombudsman argued only 19% of over-85s live in a care home.

Ms Brown decided the council’s decision was not reasonable and ordered the authority to reassess the man’s financial means, excluding the value of the property. She upheld a related complaint about the lack of an independent appeals procedure.

The ombudsman said the operator of the care home had said there were other similar cases, and the company worked with different councils operating different policies.

In her report, Ms Brown said: “I am concerned again that the current system is confused and inconsistent throughout Scotland and in particular that there is no recognised, independent, appeals processes.”

She also expressed concern that different policies existed over the issue of who pays when property has been transferred to relatives for no cost – known as “love, favour and affection” – no matter how long ago it changed hands. The ombudsman said that denied the public the certainty needed for proper financial planning.

Her report said: “The current regulation is causing distress to a vulnerable sector of the population and placing a disproportionate administrative burden on councils.”

The ombudsman has sent a copy of the 19-page report to the executive’s health department, asking for changes to existing guidance and regulations to be considered.

Helena Scott, head of policy and research at Age Concern Scotland, agreed that the policy adopted by each council varied across the country.

She added: “It would seem that regulations and guidance are ambiguous as it is up to individual councils how they apply them. It is very important that there is a clear and independent formal procedure for lodging any kind of appeal.”

East Dunbartonshire Council has agreed to review its current policy and reassess the complainer’s financial means. A spokeswoman said: “The ombudsman stated that she had considerable sympathy for the council employees who were faced with reaching a decision in the case.

“It should, however, be noted that each assessment is different and therefore the council’s decision in this case does not affect other assessments.”

An executive spokesman said: “We believe the guidelines are clear, but at the same time allow local councils the necessary flexibility to interpret individual cases. Nevertheless, we are happy to consider the ombudsman’s recommendations carefully to see what further changes can be made.”