Overwhelmed with the complexity of funding your care?
Let’s make it simple.
This guide explains how you can pay for your residential care, and what help may be available. This is a guide only and it is recommended that you obtain Independent Legal Advice if you need help with funding your care.
How much will I pay for care?
Our care home fees start from £900 per week, and this will depend on your individual needs.
How much, if any, of this you pay will depend on whether your local authority will pay for your care.
Will the local authority pay for my fees?
Your local authority may contribute to your fees, or pay them in their entirety.
To find out whether you’re eligible you’ll undergo a financial assessment (known as a means test), which will assess your income and savings. The aim of this assessment is to decide whether you can afford your own care, or whether your council should help.
How will my savings and property affect the care home fees I pay?
The following breakdown summarises how much in savings and/or property you can own before having to pay 100% of your care home fees.
Amount of your capital |
What you will have to pay |
|
| Over £23,250 | You must pay full fees (known as being self-funding) | |
| Between £14,250 and £23,250 | The local authority will pay for some of your care and you will contribute to the rest | |
| Less than £14,250 | This will be ignored and won't be included in the means-test – the local authority will pay for your care. However they will still take your eligible income into account. |
Will I need to sell my home to pay for my fees?
You may be worried about having to sell your home to pay for your care home fees, however this may not be necessary. In short, if your spouse or another dependent relative is still living in your home, then it is disregarded (although you will have to pay fees if you have savings above £23,250 - read the full guide from Age UK for more information).
You may also have other options, such as bridging loans; care home fee payment plans or equity release. To understand these additional options, read this guide from Independent Age.
Will I need to sell my home to pay for my fees?
You may be worried about having to sell your home to pay for your care home fees, however this may not be necessary. In short, if your spouse or another dependent relative is still living in your home, then it is disregarded (although you will have to pay fees if you have savings above £23,250 - read the full guide from Age UK for more information).
You may also have other options, such as bridging loans; care home fee payment plans or equity release. To understand these additional options, read this guide from Independent Age.
What is a deferred payment agreement?
If most of your money is tied to your property, with very little in the way of savings, your local authority may set up a deferred payment agreement. This means that you won’t have to pay your care home fees until you sell your home, or until after your death. This agreement is legally binding, and will involve the council placing a legal charge on your property.
It’s important to note that you won’t normally have to pay more than 90% of the value of your home in fees (most local authorities set a limit between 70% and 80%).
A deferred payment agreement will come into effect after 12 weeks of being in the care home, during which time the local authority should have assisted with the fees.
For a comprehensive breakdown of how deferred payment agreements work, read this guide from the Money Advice Service.