Of the nearly half a million residents in care homes across the UK, around half are self-funded with the other half being supported or fully funded by their local authority.
Navigating the intricacies of funding for care homes can be overwhelming, especially for seniors and their families. Understanding who has to self-fund and who can receive government aid is crucial for making informed decisions about long-term care. In this guide, we'll delve into the criteria for self-funding and government funding, as well as important considerations for both scenarios.
Self-funding criteria:
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After undergoing a Care Needs Assessment, individuals may be required to undergo a financial assessment to determine their eligibility for government assistance. Those whose assets exceed £23,250 are expected to fully fund their care costs. Assets include investments, savings, and property equity.
However, individuals with assets falling below £14,250 qualify for maximum support from the local council. If you anticipate your savings falling below the £23,250 threshold while in care, you can request a financial review from the council.
While self-funding, seniors remain entitled to pensions and benefits that are not means-tested, such as Attendance Allowance and Personal Independence Payment. These funds can be used towards the cost of care.
It's essential for self-funders to have a clear financial plan in place and a transparent contract with the care home outlining responsibilities. Additionally, registering a Lasting Power of Attorney ensures decisions are made in the individual's best interests should they lose mental capacity.
Government funding eligibility:
Seniors whose savings fall below £23,250 qualify for financial aid from the council. Following a Care Needs Assessment and financial evaluation, the council determines a personal budget, subtracting the individual's required contribution.
This personal budget covers care costs, with the individual's pension, benefits, and asset income considered towards their contribution. However, seniors still receive a Personal Expenses Allowance (£24.90 per week) for discretionary spending.
The council provides a list of local care homes meeting the individual's needs, accommodating preferences whenever possible. If preferred homes are unavailable, the council arranges temporary care and covers costs for more expensive facilities if necessary. Seniors also have the option to move to a care home closer to family, with council support.
Key Steps in Applying for Care Home Funding
| Step | Action | Who Handles It? |
|---|---|---|
| 1. Care Needs Assessment | Evaluate if care home placement is necessary | Local council |
| 2. Financial Assessment | Determine if assets exceed £23,250 | Local council |
| 3. Funding Decision | Set personal budget based on financial status | Local council |
| 4. Choosing a Care Home | Review council-provided options or choose a preferred home | Individual & council |
| 5. Personal Contributions | Paying from pension, benefits, or savings if required | Individual |
| 6. Ongoing Reviews | Reassess care needs and funding eligibility | Local council |
FAQ:
1. Who has to self-fund their care home costs?
Individuals with assets above £23,250 must pay for their own care. This includes savings, investments, and property equity.
2. Who qualifies for government funding for care homes?
Seniors with assets below £23,250 may receive financial aid from their local council, with full funding available for those with less than £14,250.
3. How is eligibility for care home funding determined?
A Care Needs Assessment evaluates the level of care required. Then, a financial assessment determines if the individual qualifies for government support.
4. Do self-funders receive any financial help?
Yes, self-funders can still claim non-means-tested benefits like:
- Attendance Allowance
- Personal Independence Payment (PIP)
- Pensions
5. What is the Personal Expenses Allowance?
Seniors receiving council funding keep a Personal Expenses Allowance (£24.90 per week) for discretionary spending.
6. Can I switch from self-funding to government funding?
Yes, if your savings fall below £23,250, you can apply for financial assistance from your local council.
7. Can I choose my own care home if I receive government funding?
The council provides a list of care homes within budget. If you prefer a more expensive home, a third party (e.g., family) must cover the difference.
8. How do I apply for care home funding?
- Contact your local council for a Care Needs Assessment.
- Undergo a financial assessment to check eligibility.
- Review funding options based on the council's decision.
Understanding self-funding and government aid for care homes is essential for seniors planning their long-term care. Whether self-funding or eligible for government support, it's crucial to navigate the process with clarity and understanding. Seeking guidance from care home experts can provide valuable assistance in making informed decisions about care options.
We are here to help you choose a care home or facility best suited to your needs. Do not hesitate to contact us on the following number: 0203 608 0055 or fill out this form.
