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Meeting the cost of care and caring
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One of the major worries facing families is how to pay the fees of a care home or home care provider. Good nursing, residential and home care can be expensive but it it important not to settle for second best in the hope that your money will go further.
How do I start?
Look at all your possible sources of income (after tax) such as:
Private Pension
State Pension
State Benefits
Investment Income
Savings
Property
You may well wish to ask an independent financial adviser about the long-term management of your finances in order to assess potential sources of income. You would be well advised to seek several opinions in order that you can make a fully informed decision. Above all it is important that you ensure that you are able to afford the fees not only now but in the foreseeable future.
Who pays and how much does care cost?
Many people needing Residential, Nursing or Home Care are able to meet the costs of care themselves, or with the help of relatives or family members. Others of more limited means may be eligible for some financial help towards the cost of care from the County Council under the community care arrangements. Some people, however, depending on their need, may be eligible for care paid for by the NHS. Normally people leaving hospital for a residential or nursing home would be dealt with by Social & Caring Services, but some people needing intensive or specialist care may still be the responsibility of the Health Service. Your local Health Authority or Primary Care Trust can give you further details. Age Concern have produced a leaflet on this aspect of care financing which can be looked at here.
Even if you or your family are meeting your full cost of your fees you may be able to claim Attendance Allowance. The Benefits Agency Free Helpline will give you more information. Tel: 0800 88 22 00 (Leaflet SD4) or click on the mouse and go directly to the Benefits Agency webiste:
If you do not require financial assistance towards the cost of Residential or Nursing Home care you can of course, approach the Home of your choice and make your own arrangements for admission and for funding the care that is needed.
It is possible to get help with the costs of residential care from some charitable organisations, for example, those which are concerned with particular occupational groups, such as nurses or ex-service men and women. For more information about organisations who might be able to help go to
Various organisations, such as Age Concern and Counsel and Care, publish free factsheets about paying for residential and nursing care. Click on the mouse to go to the Age Concern website and look at their Community Care Fact Sheets.
The average cost of nursing home care is £430-00 per week (£22,360 per annum), with residential care approximately £365-00 per week (£18,980 per annum) and so you may wish to ask an independent financial advisor about the long-term management of your finances. To help you get an overview of your personal finances print out and complete our Care Fees Funding Planner.
Paying for care at home
If you make your own arrangements for care at home, you pay for it yourself, but you may be entitled to benefits like Attendance Allowance or Disability Living Allowance to help meet the costs. For advice about benefits you should contact Age Concern (West Sussex), the Benefits Agency or your local Citizens Advice Bureau.
Will Social & Caring Services help?
If you need Residential or Nursing Home care and have savings (capital) of less than £20,000 it is likely that you will be eligible for financial help towards the cost of your care. Anyone who has capital of their own above £20,000 will be assessed as being able to pay the 'standard rate'. Those whose capital is between £12,250 and £20,000 will be expected to make some contribution from their capital as well as income. You should not have to make any contribution from your capital below £12,250, but you will still be expected to contribute from your income. Local authorities cannot assess the joint resources of couples – they have to look purely at your own income and capital.
Social Services will:
Assess your care needs
Establish how your care needs can best be met
Assess the amount that you will be asked to contribute towards the fees.
This assessment may result in Social Services offering to provide care in your own home (Domiciliary Care) rather than in a residential or nursing care home. The amount that you will be asked to contribute towards the fees will be based on your ability to pay, not the cost of the Home. If social services are paying the full cost of care then your choice of residential or nursing care home will be limited to those homes that have contracts with West Sussex County Council and whose room fees fall within the amount the local authority would normally pay.
If you have chosen a more expensive room than social services is able to finance, you will need to find a secure source of income to pay the difference.
If your family or friends, or other third party, are prepared to "top up" your income, or if your savings and capital are well above the savings "threshold", then of course you can approach the care home of your choice and make your own arrangements for admission and for funding the care that is needed, with no need to contact social services at all.
Nursing Home Fees Agency link to free advice on funding care fees.
Financial Assessment
You will be asked for details about your income and capital. This is called a financial assessment and works out what social services will pay towards the care, and what you will have to pay.
Both income and capital are taken into account, but as a general guide, if your total capital is:
Less than £12,250: social services will pay the full cost of care for a contracted home within their spending limits.
Between £12,250 and £20,000: you will have to contribute to care home fees. Social services use the financial assessment to work out how much this will be.
More than £20,000: you will probably have to pay the full cost of the care home – and you will have to make the arrangements – until your total capital falls below £12,250. After that time, social services will help, as long as they approve the home you have chosen.
More than £20,000: you may want to ask an independent financial adviser about the long-term management of your finances.
The County Council pays higher fee levels for people under 65 years with special care needs.
i.e. severe physical disability and severe learning disability.
West Sussex County Council standard rates for Residential and Nursing Home care from April 2004:
Care Homes (Residential) |
2004/2005 WSCC weekly rate |
Band A (Moderate levels of personal care needs) |
£258-00 |
Band B (High level of mental /physical care needs) |
£331-00 |
Band C (Intensive /complex mental health needs) |
£400-00 |
Band P (Intensive /complex physical care needs |
£373-00 |
A geographical premium of an additional £20-00 per week applies to placements in care homes registered to provide for older people in Crawley, Horsham, Mid-Sussex and the Midhurst area. |
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Care Homes (Nursing) |
2004 / 2005 WSCC weekly rate |
Baseline Social Care Rate (accommodation and some personal care) |
£390-00 |
NHS contribution to nursing care |
Low (£40-00) |
£468-00 |
|
Medium (£75-00) |
£515-00 |
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High (£120-00) |
£567-00 |
A geographical premium of an additional £20-00 per week applies to placements in care homes registered to provide for older people in Crawley, Horsham, Mid-Sussex and the Midhurst area. |
A geographical premium of an additional £20-00 per week applies to placements in care homes registered to provide for older people in Crawley, Horsham, Mid-Sussex and the Midhurst area.
When you visit a home, ask about the arrangements for payment and what exactly the fees include.
Income = all regular payments to you, such as pensions, benefits, dividends etc.
Capital = your savings and investments plus the value of any property you own.
What happens if my money runs out?
If you go into a care home, or purchase home care, and later run out of funds, you will still be entitled to apply for financial support at a future date.
Contact you local social and caring services office at least three months before your funds reduce to the threshold level, currently £21,500, and explain the situation.
The bottom line:
Don't settle for second best in the hope that your money will go further. The choices you make now will effect the rest of your life.
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