Wales is well-known for attracting higher returns when compared to other popular care home locations. Recently, a legislative change has created another added benefit for investors considering the care industry.
Local councils offer to provide funding for citizens that are not able to cover their care fees. A care needs assessment is carried out, mainly consisting of a financial assessment. This assessment is known as the Means Test and it evaluates the income and savings of the applicant. The Means Test determines whether the individual is eligible for financial help with some or most of the care fees.
However, the eligibility for state-funded care varies across the United Kingdom. In England, citizens are required to prove that their assets and savings total to less than £23,250 in order to be eligible for government funding for their care. Meanwhile, prior to April 2018, Welsh citizens had a care savings limit of £30,000.
The important legislation changes were implemented in April 2018, where local governments agreed to raise the limit by £10,000 in Wales. Today, if the applicant has capital assets and/or savings worth a total of less than the new care saving limit of £40,000, they will be completely disregarded in the Means Test for state funded care home provision.
Why is the change in the care saving limit in Wales beneficial to you as an investor?
Although there is ongoing interest in Care Home investments across the United Kingdom, and proven benefits of such investments – investors in the local authority funded care homes market should consider care homes in Wales specifically. Following the increase in care home savings limit, more Welsh senior citizens will be eligible for funding for their occupancy in the Welsh care homes by local authorities. This means that the demand for vacancies in government funded care homes in Wales has significantly increased, and correspondingly the occupancy rate has also increased. Therefore, investors are encouraged to take advantage of these new legislative changes and not just invest in the care homes industry, but invest smart.