As the cost of care homes in the UK continues to rise, many families seek financial assistance to make long-term care affordable. Navigating the options can be challenging, but understanding available funding sources—from government grants to private insurance—can ease the financial burden and help families plan for their loved ones’ care. Here, we explore five key financial assistance options to consider when covering UK care home costs.
1. Local authority funding
What is local authority funding?
Local authority funding is financial support provided by councils to help cover the costs of care homes for eligible individuals. The amount of assistance depends on the individual’s financial situation, including income, savings, and property value.
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- Means-tested assessment: To determine eligibility, the local authority conducts a means-tested financial assessment. This assessment examines assets and savings. If total assets fall below a certain threshold (currently £23,250 in England), the individual may qualify for partial or full funding.
- Care needs assessment: The local authority also performs a care needs assessment to confirm the level of care required. Funding is only provided if the person meets both the financial and care criteria.
Eligibility criteria:
- Total assets under £23,250
- A care needs assessment indicating the necessity of residential care
Benefits of local authority funding:
- Reduced costs: For eligible individuals, this funding can significantly reduce care costs or cover them entirely.
- Continued support: The local authority periodically reviews funding eligibility, ensuring ongoing support if financial circumstances remain unchanged.
2. NHS Continuing Healthcare (CHC) funding
What is NHS Continuing Healthcare (CHC)?
- NHS Continuing Healthcare is a funding option available to individuals with complex, ongoing health needs. This funding covers the full cost of care, including residential and nursing care home fees, and is provided by the NHS rather than local authorities.
How it works:
- Eligibility assessment: Eligibility for CHC funding is based on an assessment of the individual’s health needs, focusing on the complexity, intensity, and unpredictability of their condition.
- Care setting: CHC funding covers care in various settings, including care homes, nursing homes, and even at-home care.
Eligibility criteria:
- The individual must have substantial ongoing health needs that go beyond what local authority funding covers.
- A multidisciplinary team performs an assessment using the NHS CHC checklist and Decision Support Tool (DST).
Benefits of NHS CHC funding:
- Comprehensive coverage: If eligible, CHC funding covers all care costs, removing the financial burden from families.
- Healthcare-focused: CHC funding is ideal for individuals whose care needs are primarily health-related, such as those with severe physical or mental health conditions.
3. Attendance allowance
What is attendance allowance?
Attendance Allowance is a non-means-tested benefit for individuals aged 65 and over who need help with personal care due to a physical or mental disability. This allowance is designed to help cover the cost of care and can be used in conjunction with other funding sources.
How it works:
- Eligibility based on care needs: Eligibility depends on the level of care needed, rather than financial means. There are two rates: a lower rate for those needing care during the day or night, and a higher rate for those needing care throughout the day and night.
- Payment structure: Attendance Allowance is paid directly to the individual, and they can use it to cover personal care costs or contribute toward residential care fees.
Eligibility criteria:
- Age 65 or older
- Need for personal care due to a physical or mental disability
Benefits of attendance allowance:
- No means test: Since it’s not means-tested, individuals with higher savings or income may still qualify.
- Flexible use: Recipients can choose how to spend the allowance, whether on care home fees or other personal care needs.
4. Private health insurance and long-term care insurance
What is long-term care insurance?
Long-term care insurance policies are designed to cover the cost of care, whether at home or in a care home, providing a safety net for individuals concerned about future care needs. Some private health insurance plans may also offer partial coverage for care home expenses.
How it works:
- Policy purchase: Individuals can purchase a long-term care insurance policy while they are in good health, ideally before any significant care needs arise.
- Premium payments: Policyholders pay regular premiums, and if they need long-term care, the insurance will cover a portion or all of the costs depending on the policy terms.
Eligibility criteria:
- Eligibility and premium rates depend on age, health status, and the type of coverage chosen.
- Policies must usually be purchased well in advance, as some providers may not cover pre-existing conditions.
Benefits of long-Term care insurance:
- Future security: Provides peace of mind and financial security for future care needs.
- Reduced financial strain: Covers care costs, reducing the impact on personal savings and family finances.
Choosing the right financial assistance for your family
The best funding option depends on your loved one’s financial situation, health needs, and eligibility. It’s often beneficial to combine multiple funding sources to cover care home costs more effectively. Consulting with financial advisors or care funding specialists can provide additional insight and help families navigate the application process.
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: 0230 608 0055 or fill out this form.
