Care Funding

A Guide to Funding for Care

Everybody who has residential or nursing care will be expected to pay all or part of the cost. Depending on individual circumstances, you may be eligible for funding support from your local council or the NHS.

We understand finding and funding the right care for yourself or a relative can be a stressful experience. To make things easier we have provided a short guide to funding.

How much will care cost?

  • You will never be charged more than you can reasonably pay
  • Our fees are subject to an annual review during April
  • Each week you will be left with a Personal Expenses Allowance (PEA) to spend as you wish. The PEA will be at least £24.90 per week.
  • If your capital is under £23,250, your local council may contribute towards your care costs
  • If your needs are principally health-based, then you may be eligible to free placement under NHS Continuing Healthcare (NHS)
  • Our chargeable extras include hairdressing, private chiropody, opticians, dentists, and transport

Self-Funding

  • If your capital is over £23,250 you must pay the full fees for your residential or nursing care.
  • If you are self-funding, you can continue to receive AA and care/daily living parts of DLA and PIP.

Local Council Funding

Needs Assessment

Your local authority will carry out a needs assessment to see if you meet their eligibility criteria for care in a residential setting.

Financial Assessment

Your local authority will conduct a financial assessment to calculate how much you can contribute towards your eligible needs in a care home.

How is my capital calculated?

During the financial assessment, your local authority will assess your income and capital to calculate your contribution to the cost of your eligible needs. Only your financial resources should be considered, including income and savings in your name.

Some benefits, such as DLA and PIP mobility components, will be disregarded from the financial assessment. However, other benefits, such as DLA care component and PIP daily living component, will be counted as income in the financial assessment.

The financial assessment will work differently for individuals requiring short-term residential care (i.e. respite or convalescent). For example, your home will not be included in your capital.

How will my capital affect local authority funding?

If you have capital over £23,250 you will not be eligible for funding support from your local authority.

If you have capital between £14,250 and £23,250 you will contribute from income calculated in the financial assessment and a ‘tariff’ income based on your capital. Your local authority will pay the remaining cost of your care.

If you have capital under £14,250 you will contribute from income calculated in the financial assessment but you will not need to pay a ‘tariff’ income based on capital. Your local authority will pay the remaining cost of your care.

Third-Party contributions

If you choose to stay in a home which costs more than your local authority would normally pay, it may be possible for you to arrange for a third party, such as a relative, to make a ‘top-up’ payment to cover the extra cost.

Will my benefits be affected by local authority funding?

If you receive local authority funding for residential care, some of your benefits may be affected.

Local authority funding will not affect entitlement for DLA or PIP mobility components.

Entitlement to AA, DLA care component and PIP daily living component will end 28 days after your local authority funding begins. However, if you spend days away from the care home you can receive the daily rate.

NHS Continuing Healthcare

NHS Continuing Healthcare (NHS CHS), may solely fund your care or nursing home fees if you meet the eligibility criteria.

Am I eligible for NHS CHC?

NHS CHC eligibility is based on whether you have a ‘primary health need’. Having a diagnosis does not necessarily translate to eligibility.

Primary Health Need: An ongoing significant physical and/or mental health need, for which the majority of care is focused on addressing and/or preventing health needs.

What should I do if I think I am eligible?

You can speak with your GP if you think you might be eligible for NHS CHC. For more information please visit the NHS website.

Will my benefits be affected by NHS funding?

If you receive NHS CHC funding, your entitlement to AA, and both components of DLA and PIP, ends after 28 days.

Independent Advice on Care Funding

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