Assistance with Funding

In Scotland there are essentially four approaches to the funding of Residential / Nursing Home care fees and these are set out below.

a. The Private Arrangement (also referred to as Route I by the local authority)

This self-funding arrangement applies either when the applicant chooses not to approach the local authority or when, following assessment by the local authority, he/she is deemed ineligible to receive either the Free Personal Care (FPC) or the Free Personal and Nursing Care (FPNC) contribution. The applicant instead enters into a purely private arrangement with the provider (Newark Care).

b. The Mutual Arrangement (also referred to as Route II)

This arrangement applies to those applicants who own more than a pre-determined value of personal assets, known as the ‘upper capital limit’ (£25,250 in 2013/14), and who choose to enter into a direct contractual arrangement with the provider. Following assessment they are entitled to receive either the FPC or the FPNC contribution (£166/wk and £241/wk respectively in 2013/14).

Any entitlement that the applicant may have to Attendance Allowance or the care component of the Disability Living Allowance will cease four weeks after FPC or FPNC funding begins.

c. The Integrated Arrangement (also referred to as Route III)

This is similar to The Mutual Arrangement but in this instance the individual, when applying for either FPC or FPNC, asks the local authority to manage the contractual arrangements on their behalf. The local authority does so using its normal contract for care homes.

Newark Care does not accept Residents under Route III funding arrangements, preferring to deal directly with Residents (i.e. Route II) under these circumstances.

d. Local Authority Funding (also referred to as Route IV)

The three approaches listed above are all forms of self-funding arrangements. Entitlement to a local authority funded placement in a care home is usually determined by applicants having personal assets no greater in value than the ‘upper capital limit’ (£25,250 in 2013/14).

More information on local authority funding can be found here.

Local Authority Funding

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