Advice about care home fees
State funding of care home fees is possible. Whether you are entitled to it all depends on the amount of money you have in the form of savings and investments.
The system consists of two thresholds - the upper and lower. The way it works is as follows:
- people who have more than the upper threshold in savings and investments are expected to pay for all their care fees themselves
- there is a sliding scale of state contribution for people who have between the lower and upper threshold in savings and investments
- People who have less than the threshold will receive state funding
The various thresholds differ around the country:
- In England and Northern Ireland the upper is £23,000, in Wales it is £22,000 and in Scotland it is £22,500
- In England and Northern Ireland the lower threshold is £14,000, in Wales it is £20,750 and in Scotland it is £13,750
If you own your own home, the value of this property is included in the calculation. There are some exceptions - one being if a partner is still living in the property.
The local authority will carry out a needs assessment and a financial assessment.
If the criteria for the local authority to pay are met, they will agree to pay, subject to the funds being available. How much they pay depends on the type of care required and the setting. The amount paid wall varying from one local authority to another in accordance with their budgetary constraints.
What it can cost if you have to pay for the care home fees yourself
The costs can vary greatly depending on the location of the care home and the level of care provided. As a very general guide care homes fees can be between £200-£850 a week and care homes with nursing can cost between £450 and £1,000 per week.
The 12 week property disregard
There is a twelve week window between going into residential care and the sale of your house. This means that, for that period, the value of the home is disregarded from the financial assessment.
This funding does not have to be repaid to the local authority. If the property is still not sold after that time, repayment of the fees beyond that point may be paid back by way of a deferred payment scheme.
The NHS can fund the nursing care element of any care home fees. A nurse will assess the level of nursing care a person needs. The level of funding available for this varies across the country.
The financial assessment
Before moving into a care home your local council will conduct a detailed financial assessment. It is a means tested system and they will look at your income and capital and decide how much you need to pay towards your care home fees.
Fees will be worked out as if you're receiving all relevant benefits, so make sure you are claiming all the benefits you are entitled to.
Note that no matter how much you have to pay towards your care home fees, you must be left with a certain amount a week to spend as you choose.
You will usually have the needs assessment before the financial assessment.
You can choose your care home but if the one you opt for charges more than your local council usually pays for a person with your assessed needs, you may need to find a way to pay the difference.
Nursing care funded by the National Health Service
If you live in a care home with nursing care, the NHS would normally contribute a certain amount per week towards the fees to cover the cost of the nursing element.
Some people have all their care home fees paid for by the NHS - this is called continuing health care. People who need ongoing, specialist care normally qualify for this kind of financial help.