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Community Care UPDATE

Two changes in legislation have had effect on families involved in Community Care with effect from April 1st.

1 May 1996

Two changes in legislation have had effect on families involved in Community Care with effect from April 1st.

Pensions Act 1995

The first impact is that of the Pensions Act which means that from April 8th 1996 husbands and wives of people in long term care are now able to keep half their spouse's occupational pension. Practitioners should be aware that this only applies to occupational pensions and will not apply to unmarried couples or divorcees or to spouses who are also in residential or nursing care.

The Budget

The changes in the capital allowances, i.e. the savings which can be held before care benefit is affected came into place on April 8th. The lower limit increased to £10,000 and the upper limit to £16,000. This applies only to elderly people who are in residential or nursing care.

The concept of notional income remains the same, i.e. £1 for every £250 or part of £250 over and above the £10,000 limi...

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