Asset Thresholds Increased And Elderly Victims of Crime Exempted in Income and Asset Testing Changes

Health Minister Bill English announced today a number of changes to income and asset testing rules for older people in long stay residential care, including an exemption for elderly victims of crime and an increase in asset thresholds.

"Elderly victims of crime will not be subjected to income and asset testing if they need long stay residential care. This decision will come into effect by 1 November and reflects widespread public concern for the welfare of elderly victims of crime.

"Asset thresholds for older people in long stay residential care will also be increased. The threshold will more than double for single people and married couples where both are in care. For single people the threshold will rise from $6,500 to $15,000, and for married couples it will increase from $13,000 to $30,000. For married couples where one partner is in care the threshold will increase from $40,000 to $45,000.

"These measures recognise the needs of our most vulnerable older people. The increased thresholds will apply across the board, regardless of whether people are in rest homes, public hospitals or private hospitals. They will also ensure that the people who most need help benefit from the policy, rather than people who are better off.

"These new thresholds will benefit approximately 2,700 people and will come into effect on 1 December this year. Most of the people to benefit will be people in rest homes as that is where most older people in long-stay residential care live. The new policy is expected to cost an extra $14 million a year.

"Two other initiatives have been approved. Nine national support training programmes and support for carer organisations will be funded at a cost of $2.5 million over the next three years. An additional 12 elder abuse and neglect services will be developed and monitored by the Community Funding Agency to be phased in over three years. These will cost approximately $1 million over that time.

"At this stage the Government has decided to defer the Social Security (Residential Care) Amendment Bill 1998. This Bill would have removed income and asset testing for older people in long stay public hospital care and asset testing for older people in long stay private hospital care from 1 October 1998.

"The main problem with the Bill was that people were treated differently depending on whether they were in a rest home, a private hospital or a public hospital and this created a major anomaly.

"People in rest homes missed out completely and this was unfair. It would also have created enormous pressure to move people from rest homes into hospital care and this would not be in the best interests of older people," said Mr English.