If you or a loved one do not qualify for Local Authority funding, you may be required to pay for the full cost of any care you need from your savings and capital, known as self-funding.
The Local Authority will determine what you need to pay based on a financial assessment (means test), which will take into account factors such as the type of care needed, your financial situation, and which region you live in.
Do I need to pay for a care home?
If you or a loved one are considering moving into a care home and have savings and capital above the following thresholds, you will not be entitled to funding from the local authority:
England | Upper Limit: £23,250 | Lower Limit: £14,250
Between the Upper and Lower Limits in some regions, you may be required make a contribution from your capital towards the amount you pay for your care home fees. This is known as tariff income. In England tariff income applies at a rate of £1 for every £250 (or part of £250) of capital you have between the lower and upper limit.
If you require nursing care, you should be eligible for additional benefits including NHS-Funded Nursing Care in England.
Do I need to pay for care in my own home?
If someone needs care at home and has savings and capital above the following thresholds, they will not be entitled to funding from the Local Authority and therefore, be expected to self-fund their placement:
Upper Limit: £23,250 | Lower Limit: £14,250
Please note that if your savings and capital are below the threshold (upper limit) you may still be required to make a contribution towards the cost of care.
Specialist Later Life Financial Planning Advice For Self-Funders
If you have established yourself as a self-funder and you are thinking about how to pay for care, Harold Stephens can offer you impartial and expert later life financial planning advice. By meeting with us, as specialist later life financial advisers, you will get support tailored to your exact financial situation, from someone who understands not only the care system but your wider financial planning priorities - like perhaps Lasting Power of Attorney and Estate Planning and / or Inheritance Tax. This helps you to make the best choices for your specific circumstances.
Once you get in touch, we will arrange a relaxed initial chat about your situation so we can get a good idea about all of your options when it comes to paying care fees and how these relate to your other financial and legal planning priorities. We can also give you advice on how you can proceed, including recommending suitable financial products and relevant later life planning services.
Harold Stephens is a local, later life financial and legal planning specialist with a special interest in long-term care provision and tax efficient funding options. If you, or your loved one, are at the point of care need and are currently making important care funding decision then get in touch now for an initial chat with one of our specialist advisers by calling 0117 3636 212 or emailing office@haroldstephens.co.uk.
We will also be putting on some in person events throughout October and November in the local area covering the topic of care funding decisions and related later life financial and legal planning. Event details are updated regularly here: https://www.haroldstephens.co.uk/events/
