Herefordshire pensioners face social care charge increase

Councillors are considering increasing the charges for those receiving care and support in their own home and those in long stay care homes in line with pension income rises.

People receiving care in their own home on state pension will see charges increase on average by £9.88 per week.

If they also have an occupational pension their charges could go up by £11.28 per week on average.

While those in care homes will see charges go up by £3.95 per week on average. The charge could go up by £5.35 per week, if they also have an occupational pension.

These changes are expected to affect more than 1,000 people based on the council’s current figures and finance officers say this will save Herefordshire Council some £520,000.

They expect to make £200,000 worth of savings by applying a 3.9% increase to pension income received in 2020/21 which will affect 686 people with an average increase in charges of £5.93 per week (highest £11.82, lowest £0.95).

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  Another £312,000 can be saved by applying a 2.5% increase to state retirement income and review of occupational/private pension income from April 20.

This will affect 1,182 people with an average increase £3.95 per week (highest £7.42, lowest £0.59) and reviewing occupational income will affect 959 people with an average increase of £1.40 ( highest £9.12, lowest £0.02).

Officers also say they could potentially save a further £8,000 by conducting reviews of nil charge payers and disability related expenses to identify changes in circumstances.

Head of prevention and support services Lee Davis said: “What we are doing is we are taking into account the 2.5% increase the will receive in their state pensions from 2021 increase when we set the charges.

“When we calculate charges, we take into account income from pensions and income relating to certain benefits.

“It’s a very difficult piece of mathematics and very much an individual exercise where we look at people’s individual incomes and what benefits they are on.”

If the changes are approved, a single pensioner will continue to retain at least £194.50 per week (which is higher than the Department of Health and Social Care set minimum income guarantee (MIG) rate of £189 per week (the standard MIG for pension credit is £177.10).

For couples the local MIG rate is £148.47 per week which is also higher than the DHSC MIG rate of £144.30 per week.