Will the UK Government pay for your care home? Understanding Care Funding in 2024

Who Pays for Care Homes in the UK?

Care home fees vary depending on the level of care required and the location of the facility. In general, funding comes from one or more sources: personal savings, local authority support, NHS funding, or a combination of these.

If a person has assets over £23,250 in England (£50,000 in Scotland and £50,000 in Wales), they are expected to pay for their own care. If their assets fall below this threshold, they may qualify for financial support from the local council. However, eligibility for funding is not automatic and is based on a means test.

The Means Test: Who Qualifies for Government Support?

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The means test assesses income, savings, and property value to determine how much financial assistance a person can receive. If someone’s assets are below the upper threshold, they may be eligible for partial or full funding.

In some cases, the value of the home is not included in the means test, particularly if a spouse or dependent relative continues to live there. The local authority may also provide temporary funding if a person qualifies but is waiting for a property sale.

NHS Funding for Care Homes

The NHS Continuing Healthcare (CHC) scheme provides full funding for individuals with severe health needs. Unlike local authority funding, CHC is based on medical conditions rather than financial circumstances. Those who require ongoing nursing care may also receive NHS Funded Nursing Care (FNC), which covers some nursing costs but not personal care or accommodation.

How Much Does a Care Home Cost?

Care home fees vary depending on location and level of care. On average, residential care costs around £800–£1,200 per week, while nursing care can exceed £1,500 per week.

The Deferred Payment Scheme: Using Your Home to Fund Care

For those who own property but do not have immediate cash to pay for care, the Deferred Payment Agreement (DPA)allows them to delay payments until their home is sold. This government-backed scheme helps individuals cover care costs without having to sell their home immediately.

What Happens If You Run Out of Money?

If someone has been self-funding their care and their savings drop below the threshold, they may qualify for local authority funding. It is important to notify the council in advance to ensure a smooth transition.

Final Thoughts

Care funding in the UK depends on financial status, care needs, and eligibility for government support. Understanding how funding works can help families plan for the future and avoid unexpected financial strain.

For assistance in finding a suitable care home with government funding options, Senior Home Plus provides expert guidance tailored to your needs.

Need Help Navigating Care Home Costs?

Visit Senior Home Plus for free advice on funding options and choosing the right care home.

FAQ: Care Home Funding in the UK

Will the UK government pay for my care home?

It depends on your financial situation and health needs. The local authority may cover costs if your savings are below £23,250, and the NHS provides funding for those with severe medical conditions.

Does my home count as an asset in the means test?

Your home may be excluded if a spouse or dependent lives there. Otherwise, it may be considered in the financial assessment.

What is the difference between NHS Continuing Healthcare and Funded Nursing Care?

NHS Continuing Healthcare covers full care costs for those with severe health needs. Funded Nursing Care provides partial funding for nursing care in a home.

What happens if I can’t afford care home fees?

If your savings drop below the threshold, the local council may step in to cover some or all costs. Applying early is recommended.

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