A Guide To Paying For Care Homes

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.

Nursing Care

Where an individual’s needs are primarily health-based, the NHS will arrange and pay for their care under NHS continuing healthcare (NHS CHC). If a person is eligible for NHS CHC, their care home placement will be free, however, it will be limited by the homes that can meet that individual’s requirements. When assessing a person’s needs, the council will refer that individual to the NHS if they may be eligible for NHS CHC.
In some instances, a person may not meet the criteria for their full care to be funded by NHS CHC, but still require nursing care. When this is the case, the NHS will pay a contribution towards the cost of the nursing care directly to the nursing home known as NHS-funded care (NHS FNC).