Paying for Care
home / paying
for care
See Also: Financial
and Legal Advice
The following information is a summary of what
is a complex set of rules and your own situation may well
not be covered. The Care Directory can also arrange for you
to receive free financial advice from an adviser specialising
in care fees planning. Click Here
for more details.
Qualification for
State Funding
Generally, people are expected to pay privately for a care home or care home with nursing if they have more than £23,250 in England (£26,000 in Scotland and £23,250 in Northern Ireland) of savings and investments (the upper threshold), including the value of their home. There is a sliding scale of State contribution where savings are between the lower threshold of £14,250 in England (£16,000 in Scotland and £14,250 in Northern Ireland) and the upper threshold. The capital threshold for Wales is a straightforward £24,000 with no upper or lower figures. People with savings below lower threshold will receive funding by the Social
Services.
 If
an individual owns his or her house, the value of the property
is normally included in the financial assessment. There are
some exceptions to this, for example when the individual's
partner is continuing to live in the house, the value will
not be included in the assessment.
Since April 1993, the major responsibility for
paying for care for someone with savings below the lower threshold
(or contributing to care costs for someone with savings between
the lower and upper thresholds) has been with the Social
Service Departments of Local Authorities.
If an older person needs financial help to
move into a home, he or she needs to contact the local Social
Services Department. The individual will then be assessed
to see if they need care and also to assess their financial
resources.
If the individual is assessed by Social
Services as requiring care, the Social Services Department
may, subject to the funds available, agree to pay for care.
The amount it pays will depend on the type of care required
and in what setting. The amount paid will tend to vary from
one Local Authority to another, in accordance with their own
budgetary constraints.
In most parts of the country, there are homes
which will accept Social Services
funding and older people who qualify for this can live in
these homes without charge. A qualifying person is entitled
to choose any home regardless of cost, provided that:
- It offers appropriate care
- If the fees are more than the Local Authority pays, any
top up will be paid by a third party
- The home is willing to agree to the Local Authority’s
standard terms of service
If the older person has an income, such as a
pension, that income is taken into account when calculating
the amount that the Local Authority contributes.
Before making any making any financial commitments
you should take expert
advice. The Care Directory can also arrange for you to
receive free financial advice from an adviser specialising
in care fees planning. Click Here
for more details.
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
Self-Funded Care
If an older person does not qualify for state
funding for care, they will still have access to funding
for Nursing Care and still be entitled to Attendance
Allowance.
Costs of care vary greatly depending on location
and level of care chosen. As a very general guide, costs of
care tend to fall within the following bands:
- Care Homes From
£300 per week to £850 per week
- Care Homes with Nursing
From £450 per week to over £1,000 per week
- Home Care Agencies From £10 per hour to £30
per hour
Care can be very expensive! What is more, care
provision is an open marketplace, so prices for the same care
services will differ from one care provider to another. Individuals
are always strongly advised to discuss their care needs with
an Independent Care
Adviser to ensure that they receive the right care at
the right price.
The Care Directory can also arrange for you
to receive free financial advice from an adviser specialising
in care fees planning. Click Here
for more details.
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
Twelve Week
Property Disregard
This is intended to give the older person twelve
weeks between going into residential care and the sale of
their house, either giving them time to consider returning
home or time to sell the property to fund their care. For
the first twelve weeks from admission into residential care,
the value of the older person's home is disregarded from the
means test. However it is important to recognise that this
funding is dependent on social services assessing the individual
as requiring residential care.
This funding, for the first twelve weeks, does
not have to be repaid to the Local Authority. However, if
the property has not sold after this time, the individual
may be able to enter into a deferred payment scheme with the
local authority, which is repaid out of the proceeds of the
sale of the property in due course.
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
Self-Funded
Care When Assets Are Close to Social Services Thresholds
Caution must be exercised by a self-funder where
it can be reasonably predicted that his or her assets will
shortly be reduced, due to paying care costs, to a level where
the individual will qualify for State-funded care.
Many care providers charge fees that are higher
than Social Services rates. The self-funder in this situation
is advised to be careful when choosing a care provider such
as a care home - if the care home charges fees in excess of
State allowances, or if the care home provides care that Social
Services have not assessed as being required, the individual
may need to move when State-funding of care comes into effect.
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
NHS Funding for Nursing
Care within Care Homes with Nursing
The NHS funds registered nursing care for residents in care homes with nursing.
An NHS Nurse assesses the level of nursing care a resident needs and the NHS
pays for this nursing care in the home as per the table below, regardless of
how and by whom the care is paid.
The level of funding available will vary throughout the UK. The current rates
are:
| England |
Wales |
Scotland |
Northern Ireland |
| For residents in England, the set contribution
currently is:
£110.89 per week
(there is a higher rate of £151.61 per week for people who started
residential care before 2007)
|
For residents in Wales, the set contribution currently
is:
£138.61 per week
|
For residents in Scotland, there is a set contribution of:
£179 per week for personal care
plus
£77 per week if nursing care is required
Total = £256 per week
|
For residents in Northern Ireland, there is a set contribution
of:
£100 per week
|
For a free, no obligation, chat with an
Independent Care Adviser call 0800 137 669.
Attendance Allowance
Attendance Allowance is a benefit paid by the
Benefits Agency to people over the age of 65 years, who need
help with personal care and/or supervision.
It is not taxable and is not subject to a financial
means test.
The benefit is paid at two different rates.
As from April 2014, the current rates are:
- Lower Rate = £54.45 per week
If an older person needs help in either the day or the night
but not both.
- Higher Rate = £81.30 per week
If an older person needs help both day and night.
Attendance Allowance is still paid if an older
person enters a private home where they are paying for their
own care. However, it is withdrawn if an older person enters
a Local Authority home or NHS hospital and their care is being
paid for out of public funds.
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
Carer's
Allowance
Carer's Allowance is paid to people who are caring for someone
who receives the top or middle rate care part of Disabled Living Allowance (paid
to people under 65) or Attendance Allowance (paid to people over 65). The weekly
rate is £61.35. An individual must be caring for the person for at least
35 hours a week and not earning more than £102 per week (after the deduction
of certain expenses).
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
Pension Credit
From October 2003 older people can claim Pension
Credit. This replaces Minimum Income Guarantee (Income Support).
Pension Credit aims to:
- Provide people aged 60 and over with a minimum level of income. This is
referred to as a "guarantee credit". A guarantee credit tops up
an individual's income to an "appropriate amount". For a single
person this amount is currently £148.35 per week and for a couple, £226.50
per week. The amount could be more if the person is disabled.
There will be an assessment of income and capital
to establish whether a person is eligible for Pension Credit.
For further information about Pension Credit
and how to make a claim, people will need to contact their
local Pension Service or local advice agency.
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
Mental Health Act
1983 – Section 117
Section 117 of the Mental Health Act 1983 applies
if a person has been detained (sectioned) in hospital under
Section 3 of the Act.
(Section 3 gives authority for an individual
to be detained in hospital for treatment for up to 6 months
initially).
Section 117 states that the Health Authority
should provide aftercare services where needed due to mental
disorder until they are satisfied that the person in question
is no longer in need of these aftercare services.
Whilst the Act states this duty to arrange aftercare
services, there is no obligation for the person concerned
to accept the services, which are offered to them.
If a person is detained under Section 2 of the
Act they do not get the benefit of the Section 117 aftercare
provisions.
(Section 2 gives authority for an individual
to be detained in hospital for assessment for a period up
to 28 days).
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
Continuing NHS Health
Care
This is a care package, which is arranged and
solely funded by the NHS. Continuing NHS Health Care is provided
when an individual still needs a high level of nursing care
but it is not necessary that this should be provided in an
acute hospital setting. An individual's eligibility to receive
NHS funded health care should depend on whether the patient's
primary need is a health need rather than a social need.
Primary Care Trusts assess an individual's eligibility
for fully funded NHS Care against NHS criteria. Patients are
currently assessed according to the complexity, intensity,
predictability and stability of their health care needs.
For a free, no obligation, chat with an Independent
Care Adviser call 0800 137 669.
If you require further assistance or would like to speak to
the Independent Care Adviser this site recommends please call
0800 137 669 or complete the e-mail
enquiry form.
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