Paying for home care

The first steps towards funding for your care fees is to ensure that you are receiving all the benefits you’re entitled to. There are many benefit calculators available online to make sure you know what you’re eligible for.

Another factor to consider is if you require medical attention, as you may be eligible for NHS continuing healthcare. This is a fully funded package provided by the NHS to continue your care at your home. This package is for adults, children and young people who have additional needs from a disability, accident or illness that aren’t met by existing services. To receive this package, you’ll first need to be assessed by a team of healthcare professionals, who will look over all of your care needs. If eligible, this package is typically put in place for a short period of time but can be used on a permanent basis as well. If your needs change, so will the care in place. If the council are arranging your care, it’s important to know that you still have the right to decide how your budget is spent. If you’re unhappy with the type of help that the council suggests, you are able to research services and ask them to change it if possible.

Another method of funding your care is through an immediate needs annuity, which is a type of insurance policy where a regular income is guaranteed (in exchange for an upfront lump sum) to meet the cost of your care. Also known as an immediate care plan, or an immediate need care-fee payment plan, an immediate needs annuity is a viable option for paying for home care for many people.

A regular tax-free payment is made to your registered care provider for the rest of your life, and all that is required is a one-off sum payment to purchase the plan. The cost of this payment is dependent on the monthly payment that you require, your gender, age and health as well as your medical history.

•  Savings, investments and other assets –selling assets including shares could release money to help pay for care services
• Downsizing property – moving to a smaller space saves on running costs and also may provide a lump sum to fund home care
• Income from employment, property (such as lettings) or pensions

It’s important to note that you might not always have to self-fund your care. Once the value of your total assets drops below the threshold, you may be eligible for assistance from your local council.

You may be eligible for council tax discounts or exemptions, depending on your situation. This could help with paying for home care now or in the future, by giving you savings from tax payments. You are exempt from paying council tax:

• If you live alone and your house becomes unoccupied because you move into a care or nursing home
• If you are diagnosed with a severe cognitive impairment which appears to be permanent (Dementia is a condition under which this would apply)

You may be eligible for a reduction in council tax:

• If you live in a larger property than you need because you, or another occupant, are disabled

If you feel you may be eligible for a discount or exemption from council tax, it’s worth getting in contact with your council. They will be able to carry out an assessment and verify this for you.

If you are moving to a care home on a permanent basis, and the council has accumulated your assets to be above £23,250, then you will have to fund for your care yourself. The local council will calculate the cost of your care and how much of this you will have to pay for yourself.

They will provide a realistic figure which allows you access to an appropriate care home. You will be expected to pay for this from your eligible income, but you must be left with a minimum of £24.90 per week, which is known as your personal expense allowance.

The care home fees will vary depending on the individual care home and its location. The difference between a care home in the north and the south can be as much as £230 a week.