Whether it’s yourself or a loved one that is moving into residential care, it can be a concerning time, particularly when fees are mentioned. There are two primary methods of funding a move to a residential care home, these are self-funded and state-funded. Here in the UK, around half of the population in care homes fall into each category.
Self-Funded Care
Self-funded care relies on the individual having the means to fund their own care. This can be from savings, selling their property, or investing their property in a high-interest account.
As of 2022, if your assets total a value in excess of £23,250 (£50,000 if in Wales), you will be required to self-fund your care. They will then be reassessed to see if you still have viable funds before being considered for state funding.
If a person falls above this bracket, or they wish to self-fund, there are two ways that this is done. Firstly, if the individual is paying partial fees (with the remaining council-funded) the council will pay their fees, then collect the balance due from the individual.
If the individual is paying the total balance of the fee themselves, they can pay this directly to the home. Alternatively, many councils offer a service whereby they pay the total fees to the home, and the individual pays the council. However, it is worth noting that some councils will charge for this service, therefore we advise that you check with your local council for specific guidance.
