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What is Personal Care Investment Plan (PCIP)?


It is not an insurance policy and you are simply buying a service which you will use in the future at today’s market price.  PCIP is a simple way of putting some money aside or buying a service which you will need at a later date. PCIP is an ideal way of saving on the cost of care. It is a specific product for people that would not meet the Means Testing Criteria.


Means Testing

Social Services will only provide maximum funding for those who pass a means test.

Those with combined assets and income (including any social security income support benefit entitled to whether being claimed or not) exceeding:-

                   England - £21,500
                   Wales - £22,000
                   Scotland - £20,750 (2007/8)

(Have to pay for their own care with the exception of any NHS Contributions towards nursing needs). So if you want to try and ensure such care can continue to be paid for, professional care fees planning will be essential.


Only those currently below:

                                          England - £13,000
                                          Wales - £17,250
                                          Scotland - £12,500 (2007/8)


qualify for the maximum local social services budget, often known as the standard rate or contract rate. This rate varies from one local authority to another. This may not even be sufficient to pay for some local authority run homes. Even where you do qualify for the maximum local authority funding, they will take all your income bar your Personal Expenses Allowance (currently 2007/8, £20.45 per week in England and Scotland and £20.88 in Wales) away from you as contributions towards their funding. Those whose capital falls in between the upper and lower capital thresholds will have the value of any capital exceeding the Lower limits theoretically converted into “income” at a rate of every £250 worth of capital exceeding the lower limit, = £1 per week “income”.

This is then added to any actual income received or you would be eligible for, if you claimed it, e.g. benefits. The total is then compared to the actual cost of care. If your combined weekly income figure exceeds the cost of care, once again you would need to pay for your own care until your capital reduced to such a level as the “income” didn’t meet the cost of care. If the combined income, however, falls short of the required care costs, the local authority would fund only the difference.

For more information about the assessment and entitlement click here .


So what do they include in assets and income?


All assets owned by the person needing care (not partners as well) and half of any joint assets including:

Bank & Building Society Accounts

National Savings and Premium Bonds

Stocks and Shares

Share in a Family Business

Regular Savings and Investments including PEPS and ISA’s (but does not include Surrender Values of Life Insurance and Single Premium Investment Bond)

Financial Gifts made


Your Home but not when:

spouse or partner still lives there

a relative over 60 still lives there

an incapacitated relative still lives in it

a child under 16 still lives there and the person needing care is responsible for maintaining them (only one property can be disregarded under these rates)



Personal possessions are excluded unless believed purchased deliberately to reduce capital prior to an assessment.

Your local authority also has the discretion but is not compelled to disregard the home if it has now become the sole residence of someone who previously cared for you.

Even if the home does not qualify for one of these exemptions the local authority must disregard the value of the home for the first 12 weeks only after you remain in care for more than 6 weeks and care is deemed as permanent (or up to 52 weeks if temporary), but only if the value of other assets do not exceed £21,500 England and N.Ireland (2007/8). After 12 weeks the house would be included in your assets.

Even during the disregarded period, the Local authority will still expect person in need of care to make a contribution towards their care, based on their actual income and other assets. The Local Authority will also apply on your behalf for any state benefits to which you are entitled to maximize your actual income. It is only then that they top up the resultant income to their prevailing tariff rate for care in the area. The amount, the local authority contribution pays during this 12 week period does not need to be repaid, but once the 12 weeks have expired, if your savings including the house exceed the upper capital threshold you would be responsible for meeting the costs yourself. If the amount is less than the upper threshold you can apply for the Deferred Payment Scheme.





DNB Personal Care investment Plan. (DNB PCIP)

We are all going to need help when we grow old, with the ever growing cost of care it is wise to plan for tomorrow and put some money aside to cater for our future needs.

On average, it costs approximately £15.00 for an hour of home care today and needless to say this will increase exponentially with time.

Why not buy your future care at today’s prices and invest in your care package today. Premiums start at £6.50 per week. Each weekly premium translates into 1/2 hours per week, price guaranteed until 2022. To contact us click here .