Funding Care
Funding care in the UK can be complex, as it depends on the type of care required, the individual's financial circumstances, and where they live (England, Scotland, Wales, or Northern Ireland).
1. Types of Care and Funding
a) Residential Care
This includes care homes and nursing homes, where individuals receive accommodation, meals, and care services.
b) Non-Residential Care
Care provided at home or in community settings, such as home care, day centres, or supported living.
2. Financial Assessments (Means Testing)
To determine eligibility for funding, a means test assesses:
Income: Pensions, benefits, and other regular income.
Savings and Assets: This includes property, savings, and investments.
Different thresholds apply across the UK.
England
If your assets are:
Over £23,250: You pay the full cost of your care (self-funding).
Between £14,250 and £23,250: The local authority contributes, but you pay part of the costs.
Below £14,250: Your care is fully funded, but your income may still be considered.
Scotland
Free personal care is available for all adults aged 65 and over.
Means testing applies to additional services like nursing care or accommodation costs:
Over £32,750: Full self-funding.
Between £18,000 and £32,750: Partial funding.
Below £18,000: Full funding by the local authority.
Wales
If your assets are:
Over £50,000: You pay the full cost of residential care.
Below £50,000: Eligible for local authority support.
Northern Ireland
If your assets are:
Over £23,250: You self-fund care.
Below £23,250: Partial or full local authority support.
3. Types of Financial Support
a) Local Authority Funding
Provided after a care needs assessment determines the type of care required.
A financial assessment follows to determine eligibility for funding.
Direct payments may be available, allowing individuals to manage their own care.
b) NHS Continuing Healthcare (CHC)
Fully funded by the NHS for individuals with significant, complex health needs.
Covers care in any setting, including at home or in a care home.
Requires an in-depth assessment and is not means-tested.
c) Free Nursing Care
In England, if you live in a nursing home, the NHS provides a Funded Nursing Care (FNC) payment of £219.71 per week (2024 rate).
This contributes to the cost of care from registered nurses.
d) Attendance Allowance (AA)
A tax-free benefit for people over State Pension age who need help with personal care due to a disability or long-term health condition.
Rates (2024):
£68.10 per week (lower rate).
£101.75 per week (higher rate).
e) Personal Independence Payment (PIP)
For people under State Pension age who need help with daily living or mobility.
Rates depend on the level of support required.
4. Self-Funding Care
If you have assets above the financial thresholds:
Equity Release: Use the value of your home to fund care.
Immediate Needs Annuity: An insurance product to cover care costs.
Savings or Investments: Directly pay for care.
Deferred Payment Scheme
Available in England, this allows individuals to defer care home costs against the value of their property, repaid when the home is sold.
5. Free or Subsidized Services
a) Free Personal Care (Scotland)
Covers tasks like washing, dressing, and personal hygiene for those aged 65+.
b) Carer’s Allowance
A benefit for unpaid carers looking after someone for at least 35 hours a week.
Paid at £76.75 per week (2024 rate).
c) Charitable Support
Charities like Age UK, Macmillan Cancer Support, and others offer grants, advice, and services.
6. Changes in England from 2025
The Social Care Cap, postponed until 2025, will introduce:
A lifetime cap of £86,000 on personal care costs.
People with less than £100,000 in assets will receive some local authority support.
7. Steps to Access Funding
Care Needs Assessment:
Contact your local council to request an assessment.
Determines the type and level of care needed.
Financial Assessment:
If eligible for support, the council assesses your finances to determine contributions.
Explore Benefits:
Check eligibility for Attendance Allowance, PIP, or Carer’s Allowance.
Consider Legal Advice:
Complex cases, such as property ownership, may benefit from consulting a solicitor or financial adviser.
Conclusion
Funding care in the UK is a nuanced process influenced by individual circumstances and local regulations. Understanding the available options—whether through local authorities, NHS funding, or self-funding strategies—can help ensure the best possible care within financial means.
