Health (Amendment) Act 2013
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Amendment of Schedule 1 to Act of 2009. |
7.— Schedule 1 to the Act of 2009 is amended— | |
(a) in Part 1, by the substitution of the following for paragraph 1: | ||
“Assessment of means of a person who is not a member of a couple where the application for State support is made prior to the relevant day | ||
1. (a) The means of a person who is not a member of a couple shall, subject to Part 3, be assessed on the basis of the rules in this Part. | ||
(b) This Part applies to applications for State support made prior to the relevant day.”, | ||
(b) by the insertion, after Part 1, of the following Part: | ||
“PART 1A | ||
Assessment of means of a person who is not a member of a couple where the application for State support is made on or after the relevant day | ||
1.(a) The means of a person who is not a member of a couple shall, subject to Part 3, be assessed on the basis of the rules in this Part. | ||
(b) This Part applies to applications for State support made on or after the relevant day. | ||
Assessment of income | ||
2. Assess the weekly income following the directions at steps A to E: | ||
A. Establish the annual income of the person using the definition of ‘income’. | ||
B. Deduct allowable deductions. | ||
C. Divide amount produced by step B by 52 to establish net weekly income. | ||
D. Take 80 per cent of amount produced by step C (net weekly income) which amount, unless step E applies, is the weekly assessed income. | ||
E. Where applying the rule in step C produces a result whereby 20 per cent of net weekly income is less than the minimum retained income threshold, the weekly assessed income is the amount established by step C less the minimum retained income threshold. | ||
Assessment of cash assets | ||
3. Assess the weekly value of the cash assets by following the directions at steps A to F: | ||
A. Establish all the cash assets of the person being assessed using the definition of ‘cash assets’ and value each cash asset on the basis of the estimated market value. | ||
B. Deduct from the estimated market value of each cash asset the amount of allowable deductions relating to that cash asset to produce the net value of each cash asset. | ||
C. Aggregate all net values of cash assets established under step B. | ||
D. Deduct general assets deductible amount from the amount produced by step C to produce annual assessed cash assets. | ||
E. Take 7.5 per cent of the amount produced by step D to establish the amount of the annual assessed cash assets. | ||
F. Divide amount produced by step E by 52 to produce weekly assessed cash assets. | ||
Assessment of relevant assets | ||
4. Assess the weekly value of the relevant assets by following the directions at steps A to F: | ||
A. Establish all assets which are relevant assets using the definition of ‘relevant assets’ of the person being assessed and value each relevant asset on the basis of the estimated market value. | ||
B. Deduct from the estimated market value of each relevant asset the amount of allowable deductions relating to that relevant asset to produce the net value of each relevant asset. | ||
C. Aggregate all net values of relevant assets to produce total net value of relevant assets. | ||
D. If the general assets deductible amount has not been fully used in connection with the cash assets assessment apply unused balance by deducting the unused amount from total net value of relevant assets produced by step C. | ||
E. Take 7.5 per cent of the amount produced by step D or, if step D does not apply, by step C to produce the annual assessed relevant assets amount. | ||
F. To establish assessed weekly value of relevant assets divide result of step E by 52.”, | ||
(c) in Part 2, by the substitution of the following for paragraph 1: | ||
“Assessment of means of a person who is a member of a couple where the application for State support is made prior to the relevant day | ||
1.(a)The means of a person who is a member of a couple shall, subject to Part 3, be assessed on the basis of the rules in this Part. | ||
(b)This Part applies to applications for State support made prior to the relevant day.”, | ||
(d) by the insertion, after Part 2, of the following Part: | ||
“PART 2A | ||
Assessment of means of a person who is a member of a couple where the application for State support is made on or after the relevant day | ||
1.(a)The means of a person who is a member of a couple shall, subject to Part 3, be assessed on the basis of the rules in this Part. | ||
(b)This Part applies to applications for State support made on or after the relevant day. | ||
Assessment of income | ||
2. Assess the weekly income by following the directions at steps A to F: | ||
A. Establish the annual income of the person and his or her partner using the definition of ‘income’. | ||
B. From the annual income of each of those persons deduct allowable deductions applicable to that person’s income to establish net annual income of each member of the couple. | ||
C. Aggregate the two net annual incomes established under step B. | ||
D. Divide amount produced by step C by 52 to establish net weekly income. | ||
E. Take 40 per cent of amount produced by step D and the amount established following that calculation is, unless step F applies, the weekly assessed income. | ||
F. Where applying the rule in step E produces a result whereby 60 per cent of net weekly income is less than the minimum retained income threshold, the weekly assessed income is the amount established by step D less the amount which is the minimum retained income threshold. | ||
Assessment of cash assets | ||
3. Assess the weekly value of the cash assets by following the directions at steps A to G: | ||
A. Establish all the cash assets of the person to whom the assessment relates and his or her partner using the definition of ‘cash assets’ and value each cash asset on the basis of the estimated market value. | ||
B. Deduct from the estimated market value of each cash asset the amount of allowable deductions relating to that cash asset to produce net value of each cash asset. | ||
C. Aggregate all net values of cash assets established under step B. | ||
D. Deduct general assets deductible amount from the amount produced by step C to establish total assessed cash assets. | ||
E. Take 7.5 per cent of the amount produced by step D to establish the amount of the annual assessed cash assets of the couple. | ||
F. Divide amount established by step E by 2 to establish the amount of the annual assessed cash assets of the person in respect of whom the financial assessment is being carried out. | ||
G. Divide amount established by step F by 52 to produce the assessed weekly cash assets of the person in respect of whom the financial assessment is being carried out. | ||
Assessment of relevant assets | ||
4. Assess the weekly value of the relevant assets by following the directions at steps A to G: | ||
A. Establish all assets which are relevant assets of the person in respect of whom the financial assessment is being carried out and his or her partner using the definition of ‘relevant assets’ and value each relevant asset on the basis of estimated market value. | ||
B. Deduct from the estimated market value of each relevant asset the amount of allowable deductions relating to that relevant asset to produce the net value of each relevant asset. | ||
C. Aggregate all net values of relevant assets established under step B. | ||
D. If the general assets deductible amount has not been fully used in connection with the cash assets assessment then apply the unused balance by deducting the unused amount from the amount established by step C. | ||
E. Take 7.5 per cent of the amount established by step D or, if step D does not apply, by step C to establish the annual assessed relevant assets amount. | ||
F. Divide amount established by step E by 2 to establish the amount of the annual assessed relevant assets of the person in respect of whom the financial assessment is being carried out. | ||
G. Divide the amount established by step F by 52 to produce the assessed weekly value of relevant assets of the person in respect of whom the financial assessment is being carried out.”, | ||
(e) in paragraph 1 of Part 3— | ||
(i) in the definition of “assessed weekly means” by the substitution of “Part 1, 1A, 2 or 2A of this Schedule” for “Part 1 or Part 2 of this Schedule”, | ||
(ii) in the definition of “minimum retained income threshold” by the substitution of the following for paragraph (b)(i)(II): | ||
“(II) is habitually resident in a relevant facility or a nursing home, the amount of any contribution required to be paid by the partner pursuant to section 67C(1) of the Health Act 1970 ,”, | ||
and | ||
(iii) by the insertion, after the definition of “relevant business” of the following definition: | ||
“ ‘relevant day’ means the day following the enactment of the Health (Amendment) Act 2013;”, | ||
(f) in paragraph 3 of Part 3 by the substitution of “Part 1, 1A, 2 or 2A,” for “Part 1 or Part 2,”, | ||
(g) in paragraph 4 of Part 3 by the substitution of “Part 1, 1A, 2 or 2A,” for “Part 1 or Part 2,”, and | ||
(h) in paragraph 10 of Part 3— | ||
(i) in subparagraph (b) by the substitution of “subject to subparagraph (c), shall not exceed the amount which is 22.5 per cent of the estimated market value” for “shall not exceed the amount which is 15 per cent of the estimated market value”, and | ||
(ii) by the insertion of the following subparagraph after subparagraph (b): | ||
“(c) Where— | ||
(i) the other member and the relevant person both applied for State support on or after 27 October 2009 and prior to the relevant day, the reference to 22.5 per cent in subparagraph (b) shall be read as a reference to 15 per cent, and | ||
(ii) the other member applied for State support on or after 27 October 2009 and prior to the relevant day and the relevant person applied for State support on or after the relevant day, the reference to 22.5 per cent in subparagraph (b) shall be read as a reference to 18.75 per cent.”. |