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THE SCHEME HELPS IN THREE MAIN WAYS, BY:


Providing means-tested financial support to households below certain income and asset levels. The value of the family home is included in the assessment but assets below £419,000 are exempt and do not need to be used to meet care costs.


Protecting all households from the risk of ongoing care costs. Future standard care costs are met in full by the scheme once you have received care with a standard value of £53,000, which is equivalent to between one and three years of receiving care, depending on the level of needs. This part of the scheme is not means tested.


Providing property loans to homeowners, so they do not have to sell their homes. Homeowners with assets above £419,000 can borrow money from the Scheme to meet their share of care costs. The loan is only repayable following the death of the individual (and their partner).


To h


help pay for the benefit, the States intrl


oduced a Long


Term Care charge in January 2015 of 0.5% of taxable income. This increased to 1% in January 2016, and is payable on taxable income up to the Social Security annual upper earnings limit of £162,504 (2016). For most tax payers, this contribution is collected at the same time as ITIS payments.


Unlike the Social Security Fund, the Long Term Care Fund has only been in operation for two years and has not built up reserves that can be used to support the growing cost of care. Therefore, it is likely that the generosity of the scheme and the contribution rates will need to be reviewed in the next few years.


An Ageing Island


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