When moving into a care home, or supporting a loved-one’s move, understanding what the State funds and who is eligible can be extremely confusing. It is often the first time you have looked into this and often is at a time of considerable stress and anxiety.
The following provides an outline to some of the most commonly asked questions, but does not replace seeing specialist advice about your specific situation.
When and what will the Local Authority Pay?
Even though you may have paid National Insurance contributions, they do not go towards the cost of funding social care or residential care. Whether your residential care is funded by the Local Authority will be means tested.
The means test will look at:
- Your regular income from pensions, benefits or earnings
- Your capital – such as cash savings, investments and property
If your income and capital are above £23,250, as a self-funder and have to pay in full for your care.
If below this threshold, the amount you may have to pay will be determined by the means test.
For more information about funding for care homes in North East Lincolnshire click here
Even if you are self-funding because your assets fall above the threshold, it is important to get a care assessment as there are other forms of financial assistance you may be entitled to.
Will I have to sell my home?
If you own your home, the value of it might be counted as capital after 12 weeks if you move permanently into a care home.
However, your home won’t be counted as capital if certain people still live there, including:
- Your husband, wife, partner or civil partner
- A close relative aged over 60, or who is incapacitated
- Ex-husband, ex-wife, ex-civil or ex-partner if they are a lone parent
If most of your assets are tied up in property and you have very little savings, your local authority might offer you the option of a deferred payment agreement, which means you won’t have to sell your home immediately to pay for the care home fees.
See more about Deferred Payment Agreements