bupa.co.ukPaying for care is a subject that few people have any experience or knowledge of. Yet, it is a challenge that more families are facing every year. This section contains information on paying for care, including:
There was a time when we thought the state would look after us 'from cradle to grave'. These days, the state still provides a level of care for the least well off. But if the state thinks you can afford to pay, you will have to pay at least some of the costs of accommodation and personal costs in a residential nursing home.
Briefly, there are three bands of support:
If your capital falls below the upper amount while you are in a care home, you will become eligible for help from the local authority.
If you want a more expensive home than the authority is willing to pay for, you are allowed to arrange a 'third party contribution' from another source.
Your home would be included in your assets only if you live alone, or you are both moving into a care home. In addition, the local authority will disregard the value of your home for 12 weeks after your admission to permanent nursing or residential care.
You will be expected to use all your income - including your pension, benefits, and so on - to fund your care. However, you can keep £20.45 (£20.00 in Wales) a week spending money.
Even if you are paying all your own fees, the NHS now makes a contribution to your nursing costs. Nursing care is defined as the care you are assessed as needing from a registered nurse.
In England the NHS contributes to the costs of nursing care for everyone who is assessed as needing it, whether it is you or the local authority paying for your care. This is the 'registered nursing care contribution' or RNCC.
This funding is not paid directly to you. The NHS will pay it to the care home either directly or via the local authority. The normal amount you will receive is £101 per week. The rest of the costs, for accommodation and personal care, will still have to be met by you or the local authority. If you are moving into a care home because you need nursing care for an ongoing medical condition, you should check whether you might be eligible for fully funded NHS continuing care.
*NB The three-tiered system of NHS funded Nursing Care funding ceased to exist on 30 September 2007. The new single band of £101 was introduced on 1 October 2007.
In Scotland there is a flat rate contribution of £149 per week for personal care, plus £67 per week for those assessed as needing nursing care.
In Wales there is a flat rate contribution of £114.90 per week towards nursing care.
There is no simple answer. For care in a person's own home, each local authority makes its own decisions about charges. Some authorities do offer free services, but will assess your income and will charge you if your income is above a certain level.
Many people are hesitant about applying for benefits, but if you want to remain in your own home, they can be extremely useful to you and your carers. For example, Attendance Allowance does not depend on your savings or income, and could enable you to contribute to the petrol costs of a neighbour who does your shopping, or pay for a home help to do the tasks you can no longer manage. There are also benefits for people under 65, and for carers. For example, Invalid Care Allowance is for people unable to work because they are caring for someone.
Everyone's situation is different, and you should get advice. Organisations such as Age Concern (0808 808 6060), Help the Aged (0800 800 6565) or the Benefits Agency (0800 882 200, or in your local phone book) can provide you with advice based on your individual circumstances.
Immediate care insurance may be suitable if you currently considering moving into a care home. It involves paying a single sum at the time you decide you need care. The cost is based on how long the insurer thinks you'll need care for, and the level of care you need. While the cost can seem a large amount, it should provide a fixed payment for as long as you need care, and can protect the rest of your assets.
The payments are tax-free if they are generally made directly to a care home and are portable if you decide to move to a different home.
Long-term care insurance, where you pay premiums over a lengthy period before you actually need care, is no longer widely available. If you have already taken out one of these policies it should still be honoured. All policies are slightly different. We suggest you speak to an independent financial adviser who specialises in care fees planning. Among the questions to ask are:
Alternatively the BUPA 'Paying for a care home' booklet can provide impartial advice covering the options for paying for long term care.
Request your free copy of the 'Paying for a care home' booklet
Paying for care is a complex subject, and everyone's situation is different. You should seek advice about your own case. Among the organisations offering specialist advice are: