If you have cancer, the last thing you want to think about is money problems. But recent research by Macmillan Cancer Support shows that 6 per cent of people diagnosed with cancer have lost their homes, and a further 18 per cent have difficulties keeping up their mortgage or rent payments.
Macmillan found that 91 per cent of cancer patients' households suffer a loss of income or increased costs as a direct result of the disease. Among the under-55s, seven out of 10 suffer a fall in household income, with an average deficit of 55 per cent. Income can be affected by patients being forced to give up their jobs before or shortly after the commencement of treatment, or by partners of sufferers cutting their working hours in order to devote more time to providing care.
A diagnosis of cancer also leads to extra expenditure on travel and parking when making hospital visits, on special diets, on new clothes to cope with weight loss or gain as a result of treatment, on a wig to cover hair loss and on increased heating bills.
Patients often find that the highest costs are incurred by travelling to receive treatment. Duleep Allirajah, policy manager for Macmillan, says: 'A typical course of radiotherapy will last around four to six weeks as a daily treatment. As most treatments are now delivered on an outpatient basis, people are making quite lengthy journeys. Patients can be spending around £300 for travel and parking.'
The hospital travel costs scheme (HTCS) offers help through a means-tested benefit for people attending hospital for NHS treatment. 'This is often the first time cancer patients are in contact with the benefits system, yet they may be too ill to complete the complex means-testing forms,' says Allirajah. 'The HTCS helps those on the lowest incomes, but it is those who are just above the means-tested threshold who suffer the most.'
Patients are also entitled to a number of other benefits. These include the NHS low income scheme for those who do not automatically qualify for HTCS but still find it difficult to meet travel costs, and the disability living allowance (DLA) or attendance allowance (AA) for the over-65s. Carers can also claim carer's allowance.
However, many patients are not always aware that they are eligible for such benefits. A National Audit Office report in 2005 found that 77 per cent of cancer patients had not been given information about benefits by the NHS or other groups, even though half of this group would have liked to receive such information. Research by Macmillan found that a major barrier to obtaining benefits was a poor understanding of the system among patients and health professionals.
Macmillan has now launched 'Hitting Home', a campaign to help those affected by cancer to get the best advice on handling mortgage repayments and claiming benefits.
The charity wants cancer patients to be informed about their benefit entitlements and offered specialist benefit advice at diagnosis, at their local Jobcentre Plus and at other key points. The campaign is also asking for a review of the 'special rules' process, entitling patients with a prognosis of six months to live to obtain higher-rate DLA or AA, which should improve benefit take-up among terminally ill patients.
Macmillan believes that if patients are given clear financial advice, the numbers in severe financial difficulties could be significantly reduced. It advises cancer patients who are experiencing difficulties with mortgage repayments to check whether they have mortgage payment protection insurance (MPPI), which will cover repayments for a certain period. However, this may not buy sufficient time for some people.
Philippa Gee, investments director at Torquil Clark Holdings, points out: 'Most MPPI plans pay out for a maximum of 12 months. This is the very reason why clients should buy income protection and critical illness insurance rather than MPPI [income protection usually pays out until retirement age, while critical illness insurance pays a lump sum so that claimants can redeem their mortgage or pay other major expenses]. People should seek financial advice and look to restructure their debt in such a way that they can afford the repayments, although this might involve downsizing the home.'
If cancer patients do find that they have any forms of insurance which may cover repayments, they should inform their insurer about their financial situation as soon as possible, as it may take two or three months before a claim is paid out.
Macmillan is also working with Shelter, the biggest national housing charity in Britain, to help cancer victims to deal with mortgage problems. Specialist housing advisers from Shelter can help to prepare realistic and affordable proposals to put to mortgage lenders. While anecdotal evidence suggests that some mortgage lenders have not shown very much sympathy for the plight of cancer patients, most will offer a payment holiday for those struggling with repayments. Gee says: 'Mortgage lenders would not want the bad publicity of penalising a cancer sufferer, so I would expect them to be very sympathetic, especially if they know there is a pending insurance claim.'
Sometimes the attitude of a call centre employee can differ from that of the mortgage lender they are representing, and if people are facing a lack of sympathy, it is worth asking an adviser to negotiate with the lender on their behalf to avoid further stress.
Adam Sampson, chief executive of Shelter, stresses: 'By working with Macmillan, we will be able to offer specialist support and advice to cancer patients in housing need. Cancer can be devastating enough for people without the added stress of losing their home.'
· For advice and help, telephone Macmillan on 0800 500800, or Shelter on 0808 8004444
