Our Homes

Guide to Getting Funding


If you move into a care home your Local Authority will decide what level of care you require and whether you have to make a contribution towards the costs. They will look at your income and savings in order to do this. The way they do this will vary slightly according to where you live in the UK.

Personal Care and Accommodation Costs

Your local authority may pay for the cost of your residential or nursing home care if your capital is below the government set lower ‘capital limit’ for England, however you will have to contribute your income less £22.30 per week which you will be able to retain for personal expenses.

If your capital is between the lower and upper ‘capital limit’ your local authority will still pay for your accommodation and personal care, but not fully, for every £250 you have over the lower amount, they will subtract £1 per week from the money they contribute.

If your capital is over the upper ‘capital limit’ you will have to pay the full costs of your accommodation and personal care. If your capital falls below the upper amount while you are in a care home, you should become eligible for help from the local authority.

Nursing Costs

If you are assessed as requiring nursing care the NHS contributes to the costs of nursing care whether it is you or the Local Authority paying for your care. This is the 'registered nursing care contribution' or RNCC.

This funding is not paid directly to you. The NHS will pay it to the care home either directly or via the local authority. The normal amount they will receive is £108.10 per week. If you are moving into a care home because you need nursing care for an on-going medical condition, you should check whether you might be eligible for fully funded NHS continuing care. Your social worker will advise you on this.

Channel Islands and Isle of Man

Funding arrangements for the Channel Islands and Isle of Man may vary and you should contact your local Social Services department for advice.

Your local authority may pay for the cost of your residential or nursing home care if your capital is below the government set lower ‘capital limit’ for Scotland. However you will have to contribute your income towards your care, less a small amount each week which you will be able to retain for ‘personal expenses’

If your capital is between the lower and upper ‘capital limit’ the local authority may still pay for your accommodation and personal care, but, in addition to your income, for every £250 you have over the lower amount, they will subtract £1 per week from the amount they contribute.

If your capital is over the upper ‘capital limit’ you will have to pay the full costs of your accommodation. However, should your capital fall below the upper amount while you are in a care home, you can apply to the Local Authority for funding assistance.

The local Health Board Trust may pay for the cost of your residential or nursing home if your capital is below the government set lower ‘capital limit’ for Northern Ireland. However you will have to contribute your income towards your care, less a small amount each week which you will be able to retain for ‘personal expenses’.

If your capital is between the lower and upper ‘capital limit’ the Health Board Trust may still pay for your accommodation and personal care, but, in addition to your income, for every £250 you have over the lower amount, they will subtract £1 per week from the amount they contribute.

If your capital is over the upper ‘capital limit’ you will have to pay the full costs of your accommodation and personal care. However, should your capital fall below the upper amount while you are in a care home, you can apply to the Health Board Trust for funding assistance.

If your nursing needs are very high, you may be eligible to have all your care fees paid for. This will be determined at the same time as you are assessed for nursing costs.

The home manager will fully discuss fee rates with you prior to admission, however, funding from any source such as the Local Authority, Health Board Trust or NHS cannot be assumed and full payment will be expected until funding is agreed.

In all cases we strongly advise you to seek expert financial advice before entering the care home and before making any final decisions.

Yes

  • Attendance Allowance/Disabled Living Allowance (AA/DLA) Attendance Allowance and Disabled Living Allowance are both tax-free, non means-tested weekly benefits. If you are paying for your own care in a care home then you are likely to be eligible. If you are in a care home and receiving funding from the Local Authority, whilst you may still be eligible for AA/DLA this will not be paid as it is effectively included within the Local Authority funding.
  • Pension Credit. This is a means tested benefit designed to ensure a minimum guaranteed income and where applicable to assist those with limited savings or additional private income.

You should contact your local Social Services department for further information on how to claim.

Yes.

The home you choose must be suitable for your needs and be registered with the countries registration authority. Please see our additional leaflet on what to look for in a care home.

If you want to a more expensive care home than the authority are willing to pay for, you are allowed to arrange a ‘third party contribution’ from another source to make up the shortfall. You are not allowed to top up the fees yourself from any capital under the upper capital limits stated above.

When your savings fall below the upper limits set out above you are likely be able to get help with funding as above. You should contact your Local Authority Social Services department when you savings are approaching this limit so they know when their help will be needed.

Only the person going into a care home should be means tested. Generally speaking the property you are still living in will be ignored and savings are treated differently. Your social worker and the Benefits office will advise you further. You may also wish to seek further financial advise in these circumstances.

Not necessarily. The rules relating to property are complicated and you are advised to seek financial advice if you or your partner needs permanent care and own a property. The general rules relating to property are as follows:

The Local Authority has to ‘disregard’ the value of a persons home (that is, not make a charge on it) in certain circumstances when assessing the level of contribution an individual needs to make towards their care home fees. This includes, for example, where the following people currently reside in the property:

  • Your husband, wife, civil partner
  • A close relative who is 60 or over
  • A close relative under 60 who is incapacitated
  • A close relative under the age of 16 who you’re legally liable to support
  • You are a lone parent

However, if none of the above exists, then the value of the property is likely to be taken into consideration by the Local Authority in their financial assessment. In other words you will probably need to sell your property in order to meet the care home fees.

When assessing you for assistance with your fees, all Local Authorities are required to ignore the value of your home for up to the first 12 weeks of your moving into a care home. This is designed to give you a reasonable period of time to sell your property. If your remaining assets fall below the upper capital limits outlined previously, then the Local Authority will most likely pay an element of your fees until either you sell your property or the 12 week period expires. At that point the Local Authority will reassess you including taking into account the value of your property– whether you havecompleted the sale process or not.

What if I can’t sell my property within the first 12 weeks of going into a home?

Social Services can lend you money, charged against your property value. However they may limit the amount they will pay and it could adversely effect your benefit contributions. This is known as a Deferred Payment Scheme

If your property remains unsold after the initial 12 week period and you are unable to meet your care home fees from either your income or any other capital over the upper capital limit as stated previously, then you should request a deferred payment arrangement from your Local Authority. Whether they agree to enter such an agreement is entirely at the Local Authority’s discretion. You will be given the agreement in writing, and if refused you should obtain a written explanation.

This arrangement is an interest free loan specifically for the payment of your care home fees, secured against your property, and lasts until the property is sold, at which point you will be required to repay the loan in full. You will still be required to pay a contribution from your income during the time of the arrangement. Full details should be obtained from your Local Authority.

Should you believe that you may need to take advantage of this scheme, you must contact your Local Authority well in advance of the expiry of the initial 12 weeks, in order to allow sufficient time for your application to be processed. This will also avoid the risk of interest building up on any unpaid care home fees.

If the Local Authority refuses to accept deferred payments then you must contact the home immediately to discuss and arrange alternative methods of payment.

Please note this scheme can also be requested where you have previously paid fees from your capital for a period of time but those fees have now dropped below the upper capital threshold. In this case, the Local Authority can be contacted to request this scheme if the property has not been sold. We would suggest that you do this before the capital has reached the limit in order to avoid any delays.

In all cases you are strongly advised to seek expert advice where property issues are involved before entering the care home and before making any final decisions.

Are there any other options if I do not wish to sell my property to pay for my care home fees?

Yes.

You may wish to consider alternative ways of paying for your care home fees including renting out of your property and using the rental income to pay for the care home fees, or a bridging loan whilst you sell your property.

There are also companies that can offer you immediate care insurance which may be suitable if considering a care home. This involves paying a single lump sum at the time you decide you need care.

In all cases you are strongly advised to seek expert advice where property issues are involved before entering the care home and before making any final decisions.

*The information included here is correct, to the best of our knowledge, at the time of launching this website. Capital limits are correct as at April 2009.

The home delivers excellent person centred care - before I worked here, my grandmother was here for respite care, I was so impressed with the home that I applied for a job. I would have no hesitation in recommending the home to others.

Jenna Crossland,
Care Assistant, Pellon Care Centre

Thank you for looking after my wife

Mr Sweet, Uphill Grange