Aging2.0 London Chapter webinar on financial innovation in care with Jeremy Nixey, Shaw Foundation, and Yasmine John, CEO, My Care, My Home 3 Feb 2021

1. CHIP: A better way
of funding later life
in a care home or in
your own home

2. “A service which helps people pay their care
home fees without having to sell their home.”

3. Where did CHIP come from…
 From established relationships and conversations with
care seekers and their families.
 43 Million people in the UK (65% of the population)
spend 20 - 30 years saving to buy their own home.
 So, it’s not surprising that many of the 50,000 a year
who do sell it to pay their care home fees would prefer
an alternative whereby their home funded their care
home fees without having to sell it.

4. The Care and Home Inheritance Plan (CHIP)
enables a customer to meet the gap between
care home fees (for example; £50,000 a year)
and pensions income (for example; £10,000 –
20,000 a year) with the wealth from the
customer’s house.
How does CHIP work…

5. It enables the client and their family the freedom to choose a Care Home that
best suits their specific needs.
It provides the client with a Care Needs & Mental Capacity Assessment which
is carried out by an independent assessor.
•It provides the client with the shortfall between their pension and the care
home fees, for 3 years with future years paid by a discretionary grant.
It lets and manages the property to reduce the lease break fee.
Once the CHIP lease break, a fully maintained property is returned to the
beneficiaries at zero cost.
How does CHIP work…

6. How does CHIP work…
The CHIP was launched in 2020: CHIP 2 (which will fund lifetime care in
someone’s own home rather than a care home) will be launched in
2021.
Shaw Lifetime Care renovates and lets the property and applies the
rent to reduce the lease break fee. When the rent has been applied
to the lease break fee, the beneficiaries can break the lease for nil
cost and thus inherit the house unencumbered. If the beneficiaries
wish to break the lease before rent has repaid SLC’s mortgage, they
can do so by paying the diminishing lease break fee.

7. What are the advantages of CHIP…
 Pays the shortfall in the care funding for the client for 3
years, from year 4 onwards through the discretionary
grant.
 Takes the hassle away from the family of having to let the
property out to generate an income.
 Enables beneficiaries to inherit the property
unencumbered, once the CHIP lease break is £0.

8.  Puts the client and their families in control providing some comfort
at a difficult time.
What are the advantages of CHIP…
 The CHIP provides another option for care funding which did not
exist before this ethical and cost-effective solution.
 Doesn’t cost the client and their family anything upfront.
 The client retains the freehold at all times.

9. Who can benefit from CHIP…
 Local Authorities
By saving it the capital and other resources used in Deferred Purchase Agreements
 NHS Trusts by accelerating the safe and speedy discharge of patients from hospital
 Care Advice Platforms by providing the perfect solution for some care seekers and
unrestricted by constraints of DPA
 Domiciliary Care Providers by offering a very fast solution to finding and funding
transfer of a client to the care home of their choice
 Care home operators by enabling them to admit those needing their
home immediately

10. 1. The Care and Home Inheritance Plan (CHIP®)
Pays the difference between a care home customer’s care home fees and their pension income
through a lease arrangement with SLC.
In summary…
2. Rent from letting the customer’s house repays the lease break fee used to enable the
CHIP to pay care home fees.
3. The customer doesn’t need to sell their house to pay their care home fees:
With the CHIP they do not need to sell, they can use the wealth in their home to pay their care home
fees and their beneficiaries can inherit the house debt free (and with greatly reduced IHT) when the
rent from letting their home has repaid the lease break.

11. 4. The CHIP pays the care fees shortfall for 3 years and
continues to meet the shortfall for as long as they need
through a discretionary grant.
5. The CHIP overcomes the limitations of the Governments
Deferred Payment Agreement.
6. The CHIP service is provided through Shaw Lifetime Care (SLC)
A company which; puts the home in a lettable condition, lets and manages
the property throughout the term of the lease.
In summary…

12. 7. Who benefits?
(Apart, obviously, from the customer and their beneficiaries?)
The wider care community: Shaw Lifetime Care is 100% owned by The Shaw
Foundation, an exempt charity which exists to improve care services for all
regardless of their income through grant giving.
In summary…

13.  My Care My Home have established and seek further partnerships to
make the CHIP available to all who want it;
 Through Local Authorities
 Through NHS Trusts and GP surgeries
 Through Care Advice Platforms
 Through Domiciliary Care Providers
 Through Care Home Operators
How are we telling people about this?...
 Shaw Lifetime Care (www.shawlifetimecare.co.uk) have selected My Care My
Home (www.mycaremyhome.co.uk) as their marketing partner due to their
unique position within the sector to reach as many care seekers as possible about
this product