Jersey : Long Term Care Scheme
Organization : States of Jersey
Type of Facility : Long Term Care Scheme
Country: Jersey
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Website : http://www.gov.je/Benefits/LongTermCare/Pages/index.aspx
Long Term Care Scheme:
Having long-term care (LTC) needs means that you need substantial help with daily activities such as getting out of bed and dressing.
Related : Pet Travel Scheme PETS Department of Environment Jersey : www.statusin.org/7292.html
The LTC scheme provides financial support to Jersey residents who are likely to need long-term care for the rest of their life, either in their own home or in a care home.
How the long-term care scheme work?s:
If you need long-term care, you will be able to claim the LTC benefit once your assessed care costs have reached a cap of £52,120.
If you move into a care home, you will be responsible for paying the home’s non-care costs (accommodation and day-to-day living expenses). This contribution is referred to as the co-payment.
If you receive care in your own home, you will not need to pay a co-payment, as you will already be meeting your day to day living costs.
If you can’t afford your share of the care or non-care costs, you will be able to apply for extra help through means testing or an LTC property loan.
Reducing the financial worries of long-term care ?:
The scheme aims to remove much of the financial worry that people would otherwise have about the cost of long-term care.
How the scheme will be paid for?:
A separate LTC fund has been set up specifically to pay for long-term care.
In 2014, all the funding for the scheme is coming from the States transferring money into the LTC fund. The States will continue to pay money into the fund every year.
From 1 January 2015, a new LTC contribution rate of 0.5% will be collected from Jersey residents who have an income high enough to pay income tax.
From January 2016, the contribution rate for individuals will be set at 1% with the intention of holding that rate for at least the following three years.
The long-term care scheme has been designed to be sustainable in the long term, but it will require the LTC contribution rate to rise over the next 30 years to a rate of just under 3% by 2044.
How much you pay :
** If you have a tax bill then you will also have a long-term care contribution to pay.
** The maximum long-term care contribution rate started at 0.5% (2015) of your total taxable income and then increased to 1%, but most people will pay less than this.
** This works in the same way as income tax where the standard tax rate is 20%, but most people pay less than 20% tax on their annual income.
** Your contribution is based on your total income but will take into account the allowances and reliefs you benefit from for tax.
Marginal relief calculation of personal tax :
** Examples comparing the maximum contribution with the actual amount after deductions are taken into account
| Household | Income | Maximum long-term contribution (0.5% in 2015 and 1% in 2016) | Actual long-term care contribution per year | Actual % of total income | ||
| Single | £16,000 | 2015 | £80 | 2015 | £13 | 0.08% |
| 2016 | £160 | 2016 | £23 | 0.15% | ||
| Single | £30,000 | 2015 | £150 | 2015 | £104 | 0.35% |
| 2016 | £300 | 2016 | £205 | 0.68% | ||
| Single | £50,000 | 2015 | £250 | 2015 | £234 | 0.47% |
| 2016 | £500 | 2016 | £465 | 0.93% | ||
| Single | £70,000 | 2015 | £350 | 2015 | £350 | 0.5% |
| 2016 | £700 | 2016 | £700 | 1% | ||
| Married / civil partnership | £30,000 | 2015 | £150 | 2015 | £20 | 0.07% |
| 2016 | £300 | 2016 | £35 | 0.12% | ||
| Married / civil partnership | £50,000 | 2015 | £250 | 2015 | £150 | 0.3% |
| 2016 | £500 | 2016 | £295 | 0.59% | ||
| Married / civil partnership | £70,000 | 2015 | £350 | 2015 | £280 | 0.4% |
| 2016 | £700 | 2016 | £555 | 0.79% | ||
| Married / civil partnership | £120,000 | 2015 | £600 | 2015 | £600 | 0.5% |
| 2016 | £1,200 | 2016 | £1,200 | 1% | ||
Upper income limits and long-term care contributions :
** Unlike income tax, an upper income limit will be taken into account when calculating your long-term care contribution.
This means the maximum long-term care contribution for an individual is :
** £798.12 (0.5% of £159,624) in 2015
** £1,625.04 (1% of £162,504) in 2016
More information on the long-term care scheme:
If you have any comments or questions on the scheme, email us.
Email long-term care : longtermcare AT gov.je
Contact:
Long-term care assessment service (HSS):
T : 01534 444440
E : spor AT health.gov.je