What you need to know about Gratuitous Care Payments (Family Care Payments)
10 June 2024
With National Carers Week this week, we have been considering remuneration for care and support provided by family members and friends to their loved ones.
Care comes in many forms and is not limited only to providing personal care but can also include supporting your loved one with making meals, accessing the community, and attending activities. Where care and support is being provided by a family member or friend, it is often forgotten that they can be recognised financially for the support they provide as they are carrying out a role which otherwise would need to be carried out by a paid professional. This is where a Gratuitous Care Payment can be considered, otherwise known as a family care payment. This is a voluntary payment, made by the person to whom the care is being provided, to the person providing the care and support. The payment is not subject to income tax and can be paid where the relative/friend is providing all of the care, or where they are providing partial care in addition to that being provided by professionals. The payment is designed to recognise the care and support being provided.
Where the person who is in receipt of the care lacks mental capacity, their Attorney or Deputy for Property & Financial Affairs can consider and authorise this payment. However, it is worth noting that if the individual Attorney or Deputy is providing the care, they are unable to authorise such payments to themselves and permission will be required from the Court of Protection so therefore a specific application to the Court will need to be made. In addition to this, if the Attorney or Deputy is considering making a payment to a close relation to whom they are connected, it is advisable to seek Court approval for the payment to avoid any conflict of interest and to receive Court endorsement for the payment.
There is detailed guidance provided by the Court of Protection on how this payment should be calculated, which includes consideration of the person’s care needs, the type of care being provided, and the commercial value of the same. The Court of Protection also requires consideration be given as to whether this care arrangement is in the best interests of the person receiving care and whether the care arrangement is affordable. Each payment should be considered on a case-by-case basis as no two cases are the same.
If you have been caring for a loved one and require support with calculating a Gratuitous Care Payment, applying to the Court of Protection for approval of care payments, or would like to discuss the potential options for remuneration generally, our Court of Protection Team would be happy to support you.
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The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at June 2024.