Paying for your care

How much will I have to pay towards the cost of my care home?

The Residential and Nursing Home Panel will have decided the category and level of care you need. This will determine the ‘weekly contract cost’ of the care home. Please click the link for information on categories and levels of care. You will be financially assessed to contribute towards the cost of your care from your income and capital. The balance of the cost will be paid for by Social Services, and in the case of nursing homes a contribution from the local Health Service RNCC (Registered Nurse Care Contribution, formerly known as "free nursing care").

If you have enough weekly income to pay the full cost of the home and still have the government defined ‘weekly personal allowance’ left over, then you will be expected to pay the full cost of your care home fees. Please click the link for information on arranging your own care.

Your income from state benefits, private pensions, dividends, etc will be taken into account in working out your contribution. However, if you have capital above £20,500 you will be expected to pay the full cost of the home (this figure is for 2005-2006 and subject to yearly change). Also, some of your savings below this figure will be taken into account. If you have a spouse, then we will take their financial needs into consideration. Financial assessments are carried out by our Financial Assessment Unit in accordance with the Government’s ‘Charging for Residential Accommodation Guidelines’. Please click the link for information on paying for residential accommodation.

Top-up payments

If you identify a home that is above the maximum level of financial support a top-up payment must be made to the home.

If you have a property to sell and are only entitled to the property disregard of up to 12 weeks, then you yourself are allowed to pay the top-up from the start of the placement.

However, if you have no savings or property and are relying solely on your personal contribution and Social Services to pay, then the top-up can only be paid for by a third party, e.g. family, friend, charity etc – you cannot pay the top-up yourself. If you do not have a relative who can meet a third party top-up then we would advise that you identify a home that comes within the Local Authority fee levels.

Property disregards

There are exceptions to the above guidance:

12 week disregard of property

If you have no savings above the agreed limit, but have a house then you are entitled to some financial help during the first 12 weeks of your stay in a care home. The value of your house is disregarded (not taken into account in the financial assessment) for a maximum 12 weeks after you go into a home. However, if you a little savings/investments above the nationally-agreed capital limit, or if you sell you property before the 12 weeks are up, then you will not be entitled to the full 12 weeks disregard. After the property disregard period, you will be expeceted to meet the full cost of your care home.

If you have enough savings to pay for the full cost of your home for the first 12 weeks and have a property to sell, then you should arrange your own care. Please click the link for information on arranging your own care.

Total Disregard of Property

The value of your home will be totally disregarded if:

Your stay in residential care is a temporary one, eg. if your carer has to go into hospital for a period of time. This will have to be agreed with us before you move in
Your spouse or partner, who lived with you as if you were married, still lives there
A close relative, who is over 60 or who is disabled, still lives there
A close relative, who is under 16 and whom you are legally liable to support still lives there
Your ex-spouse or partner is a lone parent and still live there

If your home becomes vacant, then all or some of it’s value will be taken into account in assessing how much you will pay toward your care. This will apply from the point that the house became vacant and not backdated to the start of your stay in a care home. However, the 12 weeks disregard rule does not apply, as that only relates to the first 12 weeks you were in a home.

If you have a second property that is not your main home, then the above disregards do not apply, and it’s value will be taken into account from the start of your stay in a care home.

If you are unable to access your income and capital

You may have enough money to pay for your own care. However, due to physical or mental incapacity, you may not be able to manage your finances. In such cases, the local authority can provide short-term assistance to enable you to move into a care home. We can provide you with a place in one of our homes, or if this is not possible we can place you in an independent home. The local authority will pay for the home, but will invoice you for the cost of care, and once your money becomes available the local authority will expect that you pay back the care costs in full and then start paying the care home directly.

There are four main ways you can be helped if you cannot manage your own finances:

Appointee-ship: This is used to collect benefits. If you are physically unwell you can appoint someone to collect and manage your state benefits
Power of Attorney: If you are physically unwell, but mentally well, you can appoint someone to deal with all your financial affairs. However this stops if you become mentally unable to manage your affairs
Enduring Power of Attorney: If you are physically unwell, but mentally well, you can appoint someone to deal with all your financial affairs. However, this form continues even if you become mentally incapable of managing your affairs. Your Attorney should at that point register with the Court of Protection
Court of Protection: If you are mentally unable to manage your own affairs and have not appointed anyone to do so, someone can apply to the Court of Protection to become your receiver. This allows them to manage your affairs under supervision of the court but does not transfer ownership of property to them. A relative, friend or solicitor can become a receiver. If there is no-one available, the local authority, through it’s Finance department can be appointed as receiver

Click here to view Department of Health guidelines.

Click here for more help and advice from Counsel and Care.

Please note: It is always advisable to seek proper financial and legal advice when dealing with your own or other’s people’s finances.