Paying for Residential Care

Paying for residential care in a care home can be expensive, and it's important to explore available options for financial assistance. While the care system can be complicated to navigate, there are potential sources of help, including your local authority and, in certain circumstances, the NHS.

How Much a Care Home Costs

Care home prices in the UK vary, and the amount you will pay for your care depends on several factors. These factors include your location, the type of care required, your savings and property, as well as the care home provider you choose.

Having knowledge of the national average price of care home fees can help you make important decisions regarding your own or a loved one's care.

On average, the weekly cost of living in a residential care home is £760 per week, while a nursing home typically costs £960 per week across the UK. The monthly average for residential care amounts to £3,290, while receiving nursing care in a care home averages £4,160.

In care homes, nursing care tends to be more expensive than residential care. Care homes that offer specialised services such as dementia care often have higher fees.

The cost can also vary based on location. For instance, care homes in London tend to be pricier compared to those in the North West or South West regions. It's a good idea to research care home costs in your area to find out if they match up with your budget.

Local Authority Support

If you meet the eligibility criteria, your local council may provide financial assistance by covering some or most of your care home fees. The council will conduct a care needs assessment to determine if care in a care home is necessary. Following this assessment, a financial assessment will be conducted to determine if you qualify for financial support. The assessment considers factors such as income and capital.

How Much You Will Have to Pay For Care

If you are eligible for financial support, the local council will calculate the overall cost of your care, taking into account the financial assessment. This calculation will help determine your contribution towards the cost of care. While you are expected to pay from your income, such as pensions, you are entitled to a Personal Expenses Allowance (PEA). The PEA must be a minimum of £25.65 per week, although the council may consider increasing this amount based on your circumstances.

NHS Funding

For individuals with health-based needs, the NHS offers NHS continuing healthcare (NHS CHC) to arrange and cover the cost of care. If you qualify for NHS CHC, your care home placement will be provided free of charge. The local council must refer you to the NHS if it appears that you may be eligible for NHS CHC. In cases where you do not meet the criteria for NHS CHC but require nursing care, the NHS provides a contribution toward the nursing care costs, known as NHS-funded nursing care (NHS FNC).

Financial Considerations

Your level of finances plays a crucial role in determining the amount you will need to pay for care. The financial assessment conducted by your local council takes into account your income and capital, such as savings. Certain types of income and capital are disregarded in the financial assessment, while others are considered. Additionally, the value of your property may be included as capital, unless certain circumstances exempt it from the financial assessment.

Understanding the Financial Assessment

The financial assessment for social care evaluates your capital and its impact on the amount you need to contribute to your care costs. Here is a breakdown based on different capital thresholds:

Capital Over £23,250: You will be classified as self-funding and will be responsible for paying the full cost of your care.

Capital Between £14,250 and £23,250: In this range, you contribute from income included in the financial assessment, such as pensions, and an assumed or 'tariff' income based on your capital. The council covers the remaining cost of your care.

Capital Less than £14,250: If your capital falls below this threshold, you no longer pay a 'tariff' income based on your capital. However, you must continue paying from income included in the financial assessment, while the council covers the remaining cost of your care.

Selling Your Home

A common worry is whether you will have to sell your home to pay for care. The answer varies depending on individual circumstances. While the value of your property may be considered as part of the financial assessment, there are certain situations where the council cannot include your property in the financial assessment.

If you are the sole resident in the property, it is very likely that your property will be considered in the financial assessment. It is estimated that up to 70,000 people every year are forced to sell their property to pay for care. The Care and Home Inheritance Plan is an alternative solution that helps you pay for care without selling your home.

Pay for a care home without selling your house



Ask us about the Care and Home Inheritance Plan