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Care Home Funding & Finance Support
At Avery, we understand that exploring care home fees and funding options can be daunting. We have all the support you need if you are looking at care for yourself or a family member. We believe in full transparency regarding care home fees, and our guide aims to provide a helpful overview of your funding options and what these will involve. You can also visit our homes and speak to a friendly team member to discuss the funding options available to you or your loved one.
Am I eligible for care funding?
The cost of full-time residential care is affected by several factors, including the type of care you require, individual home fees, room size and location.
If your care needs are based on your health, the NHS may arrange your care and pay for your care fees under NHS continuing healthcare (NHS CHC). If you do not qualify for NHS CHC but require nursing care, the NHS may still contribute towards the cost of your care. This is known as NHS-funded nursing care (NHS FNC), with payments made directly to the care home. Eligibility for NHS CHC depends on your individual requirements and whether your care will be focused on addressing your primary health needs. To determine your eligibility, a team of health professionals will assess your care needs.
If you are not eligible to receive NHS continuing healthcare, you may qualify for financial support from your local authority, which means they will pay some or most of your care fees.
you qualify for local authority funding. The means test considers your capital and income, savings, property, investments, pensions and any benefits you are eligible for.
If you are eligible to receive support from the local authority towards your care fees, they will calculate the overall cost and how much of this you must contribute using the means test. The local authority will pay for some or all of your care home fees if your capital is below the upper capital limit.
How does paying for care work?
Currently, if your capital is over £23,250, you will be required to pay your care fees in full. This is known as self-funding. If you are a self-funder over the age of 65 needing care, you can claim Attendance Allowance. This is paid at two different rates: £61.85 or £92.40 per week, depending on the level of care and support you need.
If your capital is between £14,250 and £23,250, you will contribute towards your care fees from your income included in the means test. You will also pay a ‘tariff’ income based on your capital. The local authority should pay for the remaining cost of your care.
If your capital is less than £14,250, you will no longer pay a ‘tariff’ income based on your capital, but you will continue paying from your income included in the means test. The local authority will pay for the remaining cost of your care.
We highly recommend speaking with a financial advisor to help determine the type of care you need and advise you about the benefits you or your loved one may be entitled to.
What happens during a financial assessment?
A financial assessment determines how much the local authority will pay towards your care, considering the kind of care and support you need, how much this will cost, and how much you can afford. The process is free and involves a representative from the Local Authority contacting you to discuss details such as:
Income Savings Pensions Benefits Property Stocks and shares
Once the assessment has been completed, the Local Authority will inform you how much your care will cost and the amount you will need to pay. If you qualify for funding for your care from the local authority, you will be offered a personal budget. A personal budget is the amount of money the council has allocated to you to pay for your assessed care and support needs. This can be taken as a private payment, known as a direct payment, or the council can manage the budget for you, commissioning services on your behalf.
If you do not qualify for local authority funding, you will need to pay the total cost of your care. This is known as self-funding. If you plan to self-fund your care home fees, you can still ask the local authority to conduct a needs assessment. This can help you choose a suitable care home, as the local authority can provide you with information and advice tailored to your individual requirements.
What is the cap on care costs?
The cap on care costs is the maximum contribution individuals may need to make towards their care costs over their lifetime. The government has announced a cap of £86,000, which is expected to come into effect from October 2023. Therefore, if you are self-funding your care plan, the government will pay for the care element of your care home fees once you have reached this cap.
Please note that the government will only pay for your eligible care needs, and the cap does not cover daily living costs incurred whilst residing in a care home. Daily living costs can comprise food, rent, accommodation, energy costs and activities. You will pay for your everyday living costs throughout your care journey, including once you have reached the care cap.
How does the care cap relate to the capital limits?
From October 2023, implementing the care cap will mean the capital limits will change. The upper capital limit will increase to £100,000. If you have capital above this limit, you will become self-funded, paying your care fees in full.
If you have significant assets and are self-funding your care plan, the government will fund your eligible care needs once you reach the £86,000 cap. The remaining care fees will need to be met by a thirdparty top-up. Please note that the government will not meet daily living costs, including food, energy costs, accommodation and activities, including once you have reached the care cap.
The lower capital limit will increase to £20,000. Therefore, if you have assets of less than £20,000, you will contribute only what you can afford from your income. This amount is calculated based on a financial assessment, also known as a means test. If your capital is between £20,000 and £100,000, you will be eligible for some local authority funding. This will be means-tested, and you will contribute to your care fees with a ‘tariff’ income based on your capital. The local authority will cover the remaining cost of your care.
We understand that you may have concerns about the care cap and how this may affect you. Please do not hesitate to contact us if you would like further information or advice.
What happens if I run out of money?
You will be reassessed if you are in full-time care and no longer have the required income or capital assets to cover your care fees. Once your capital falls below the £23,350 threshold, you may become eligible to receive financial support from the local authority.
You can ask the local authority to carry out a review whilst you are in the care home if your savings will soon drop below the lower capital limit. This ensures the local authority can then take over the process of paying for your care fees. We advise that you provide your local authority with as much notice as possible if this is likely to be the case. Our team will support you in understanding your potential funding options and the funding you may be entitled to.
Where can I access further support on Care Home Fees?
We know that beginning to look at care for yourself or a loved one can be daunting. We are here to support you during this process; please do not hesitate to speak with a member of our friendly team if you would like further information and advice.
We would also suggest the following resources:
