Financing your care

Private funding and property

If you have assets over £23,250 you are likely to have to pay for your care yourself from your own income. If you own your own home, too, you are almost certainly guaranteed to exceed the upper limit for local authority funding, although the local authority financial assessment will help you make sure of this. If your income or other capital is not enough to cover the cost of your care, selling your home is one of the choices available to you.

We understand that this may not be your preferred option. You may have a partner or spouse still living there or would prefer to leave your home to your children in your will. Your home is not counted as part of your capital and you will not be expected to sell under the following circumstances:

• if your spouse or partner is still living there
• if a close relative over 60 living there, or under 60 but incapacitated
• if you have a child under 16 for whom you are responsible

If you do have to sell there are some alternative funding options:

• Equity release – there are various schemes which can pay for fees by releasing money based on the value of your property.
• Renting out your home to cover the cost of your fees.
• Planning ahead, if possible, to arrange an investment or insurance plan for when the time comes to go into residential care.
• Some local authorities also offer deferred payment which allows your care costs to be paid from the sale of your property. You may be able to enter into a deferred-payment agreement whereby the local authority will pay your fees while the property is being sold, disregarding the value of your property for the first 12 weeks of your permanent move into residential or nursing care. Once the property sells, the local authority will recoup the fees that they have already paid from the proceeds of sale. There is usually interest charged on this type of agreement.

To decide on the right options for you, we advise you to speak to your local authority and to an independent financial adviser.

NHS continuing healthcare funding (CHC funding)

NHS continuing healthcare funding will cover some or all of your residential or nursing care costs if you have an ongoing primary health need which requires care outside a hospital. It is not means tested but may only last for a few months.

A healthcare professional will carry out an assessment, taking your views into consideration. This can be paid directly to those supplying the care or to the family to cover the costs of care. If your health is deteriorating quickly, there is a fast-track assessment which usually enables a support package to be put in place within 48 hours.

The home may ask you on admission if you have the means to pay if/when this funding ceases.

NHS-funded nursing care (FNC)

If you do not meet the criteria for full CHC funding but do have nursing needs, you may qualify for funded nursing care (FNC). This fixed-rate sum is paid directly to the care home to cover the nursing component of your care. It can be paid whether you are paying your fees yourself or are funded by the local authority. We will show you (or your family) how we will account for this part of your fees.

The NHS has some useful information about local authority care assessments, NHS-funded nursing care and NHS continuing healthcare

Other financial benefits

You may also be entitled to any or all of the following benefits:

Attendance allowance

This helps pay for your personal care. It is paid directly to you at two separate rates, depending on your requirements.

Personal Independence Payment (PIP)

Paid directly to you, PIP helps with extra costs arising from long-term illness or disability. It’s not means tested but the amount depends on how your condition affects you and how much help you need with daily tasks or with getting around.