Financing Elderly Care

The local authority will help pay for an individual’s care needs if they are deemed to have insufficient assets to meet these care costs themselves. A “Financial Assessment” is used to gauge this which looks at both an individual’s capital (property, savings, investments) as well as their income (usually pensions and benefits). As a rule of thumb, if an individual owns their own home, and a spouse isn’t still living in it, they are likely be deemed a “Self-Funder” and will receive no help from the local authority.

When determining an individual’s assets, if his / her capital is less than £14,250 then the local authority will pay for all care costs; if his / her capital is between £14,250 and £23,250 then the local authority will contribute towards care costs; if his / her capital is above £23,250 then the individual will be deemed a Self-Funder and the local authority will make no contribution towards care costs.

 Note that if an individual’s capital is less than £23,250, but his / her income is more than the cost of their care plus the weekly expenses Personal Allowance of £22.60, the local authority will make no contribution towards care costs.

For most people it is the value of their home that pushes them above these stringent thresholds. There are however certain circumstances in which an individual’s home is disregarded in the Financial Assessment:

1. If a spouse, partner or another relative aged 60 years or over is living there.
2. If the individual’s care needs are classified as “temporary”.
3. If the value of any other assets, excluding the home, are worth less than £23,250, then the local authority will pay care costs for an initial period of 12 weeks. However, should the cost of care purchased be greater than the equivalent local authority rate then the individual will be asked to pay the difference during this period.

In the event that local authority funding is received, an individual may top-up these payments in order to meet the full cost of the chosen care provider if this is greater.

Anybody over the age of 65 years is able to claim an “Attendance Allowance” if they have been ill or disabled for at least 6 months and require frequent attention from another person. This is paid weekly by the local authority direct to the individual at a rate of £49.30 (daytime disability condition only) or £73.60 (daytime and night-time disability conditions). Note that Attendance Allowance is not applicable if the local authority is already contributing to the cost of an individual’s care.

NHS Continuing Healthcare is funded by the NHS and is available to individuals assessed as having a “primary health need” and who have a complex medical condition and substantial ongoing care needs. Not everyone with a disability or long-term condition will be eligible. NHS Continuing Healthcare can be provided in any setting, including an individual’s own home. If in a Residential Care / Nursing Home, NHS Continuing Healthcare covers care home fees, including the cost of accommodation, personal care and healthcare costs. If in an individual’s own home, NHS Continuing Healthcare covers personal care and healthcare costs.

If an individual isn’t eligible for NHS Continuing Healthcare, but they are in a Residential Nursing Home, they may be eligible for NHS-funded nursing care. This means that the NHS will pay a contribution towards their nursing home fees, often known as the Registered Nursing Care Contribution (“RNCC”). RNCC is only used to pay for the costs of nursing care and an individual who receives it will still need to pay for their accommodation, board and personal care, or undergo an assessment to see if they can get help with these fees from the local authority. Eligibility depends on whether the person is assessed as having needs that require a nursing care environment. RNCC is currently paid at a rate of £108.70 per week direct to the Residential Nursing Home, but does, for Self-Funders reduce the amount they have to contribute to the cost of care.