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The good news is that when it comes to funding your care, there are several options. While not all of these may be available or appropriate, it is worth knowing what steps are involved as some of these can take time.
Even if it's delivered by your Local Authority, care is not always free. Whether you are entitled to help paying for your care will depend on your personal financial circumstances. We can help you work out if you're eligible for help with the cost of your care and offer solutions for funding the care you need.
Home Care: The cost of care at home will depend on where you live. You should expect to pay between £17 to £30 per hour for home care visits.
Care Homes and Nursing Homes: The average cost of a residential care home in the UK ranges between £600 and £1,200 per week, or £2,400 and £4,800 per month, respectively. The provision of further nursing care makes this even more expensive, raising the price to over £800 a week. This equates to a total cost of up to £3,200 a month, or £41,600 a year.
24-Hour / Live-in Care: The annual cost of live-in care can range from £44,000 to £54,600 for 24-hour care in your own home. You have the option to use a live-in care agency or employ a carer yourself. We can help you source the right live-in carer or overnight care.
Read more: How Much Does Elderly Care Cost?
In England, if you have more than £23,250 in savings you will be expected to pay for care yourself.
In Wales the threshold varies depending on the kind of care you require, but if you have capital over £50,000 you can expect to pay at least some contribution to your care.
If your personal capital is below these thresholds (or falls below while you are receiving care), the local authority will pay for some or all of your care.
Read more: Who Pays For Care?
There are alternatives to selling your house to pay your care home fees. You might consider a Deferred Payment Agreement with your local authority or the Care and Home Inheritance Plan.
1. Care Needs Assessment
Before you can do anything else, your local authority and a social worker (possibly someone you have already been in touch with) will carry out a Care Needs Assessment. During this assessment they identify what your care needs are and advise on the types of care that will meet these needs. This might be care at home or in a residential setting.
Sometimes there can be a long waiting list for an assessment from your local authority. In these cases, we can provide a care needs assessment to speed up the process of finding the right care and funding options.
2. Local authority financial assessment
Once your local authority has decided that care is needed, and that it is possible to provide that care, they’ll assess your finances. They will look at any income, savings, investments or property that you have (if your needs are for care at home, your primary residence will not be considered) to see what help you're entitled to. This will have two possible outcomes:
• You will be eligible for full or partial financial support from your local authority
• You will not be eligible for any financial support from your local authority (also known as self-funding)
For care at home: If you have assets and savings worth more than £23,250, you will not be entitled to financial support from your local authority.
For residential care: If you have assets and savings worth more than £23,250 and/or you own your own property, you will not be entitled to financial support from your local authority.
For care at home: If you have savings and investments over £24,000 you may be required to pay up to a maximum of £100 a week towards your care.
For residential care: If you have savings and capital over £50,000, you may have to pay the full cost of your residential care.
We understand that how you pay for your care is a personal decision. Your current situation and your future plans will affect the way in which you choose to fund the care you want. For self-funders, there are many solutions available that do not involve selling your home.
At My Care My Home, we give whole-of-market care funding advice. Here are some solutions that are popular with our clients.
Your income from pensions and investments might cover your care costs. You could also use savings to pay for your care.
People with certain health needs can get care for free, arranged and funded by the NHS. This could be at home or in a residential setting depending on your needs. For example, paying care home fees for someone living with dementia.
If you're moving into a care home, you may be eligible for the Care and Home Inheritance Plan which will manage and rent your property over a number of years to cover your care home fees.
Freeing up some of the equity in your property leaves you with the option of paying for care while you remain in your own home.
A care funding plan, also known as an immediate needs annuity, works by providing a guaranteed income for life to cover the costs of care.