When a decision has been made that a care home is the right option for yourself or a loved one, an immediate concern is often care home funding. The costs of residential care, dementia care, nursing care, or respite care may be a little daunting for some, however there are different options available depending on your personal situation.
We have outlined some funding options below, however we always recommend speaking to a specialist to find the right option for you, or give us a call and we will happily discuss options with you.

Local authority funding
In order to explore local authority funding as a method of care home finance, you will be asked to undergo two assessments. The first is a needs assessment and the second is a financial assessment.
As care home funding is means-tested, your level of income, savings, and assets will be taken into account when making an assessment of what financial support you may be entitled to. If the total of these assets comes to less than £14,250 then you may be eligible for full financial support. If your assets are between £14,250 and £23,250 then you could be eligible for partial support. If your total assets are above £23,250 then you will likely need to fund your care home costs privately.

NHS funding

There are some circumstances where your care costs can be covered by the NHS. A medical professional will assess your care needs to establish whether you qualify for Continuing Healthcare Funding from the NHS, which is often only available for those requiring nursing care. Head to the NHS website for more information.

Private funding
There are several ways that you may be able to privately fund your care home stay. We recommend consulting with the Society of Later Life Advisers who can offer guidance and support for those considering privately funding care for themselves or a loved one. Some of the private funding options available include:

– Selling your house
Owning your home means that you are unlikely to receive local authority funding, and for many, selling their house seems the obvious route to take in order to cover care home fees. While this is an option to explore, there are also other possibilities for private funding.

– State benefits
If you are a resident in a care home and are using private funding, you will still be entitled to your Personal Independence Payment as well as Pension Credits. You can also explore Attendance Allowance which is based on your needs and is not means-tested.

– Annuity
An immediate needs annuity can be used for care home finance. This is an insurance policy that, in return for an upfront payment, makes regular payments that can be used for your care home costs.

Are there any other benefits I can claim?

You might be eligible for Attendance Allowance / Disabled Living Allowance (AA / DLA). These are both tax-free, non-means-tested weekly benefits. If you are paying for your own care, you are likely to be eligible for these benefits. If you are receiving funding from the local authority towards your care home costs, you will not be eligible for this benefit.

The following government web page has useful information and the application forms

https://www.gov.uk/attendance-allowance

Whilst financing care can be a daunting prospect, there are options available depending on your specific circumstances. Be sure to consult with a financial adviser and explore the best option for you, or speak to us at one of our homes for a discussion in confidence about how we may be able to help.