Care Home Fees: What do I need to know?

Cost is one of the biggest considerations when moving into a care home. It can be challenging trying to understand the different funding options, the various models of care offered and what your fees include. This blog answers some of your most frequently asked questions.

March 14, 2023

In what circumstances will I need to pay my own care home fees?

In most cases, it is the responsibility of residents to pay their own fees. However, if the value of your “capital” is under £23,250, your local authority will provide assistance. Capital means your house, savings and any investments you have.

If your spouse still lives in your home, this is “disregarded” when calculating your capital balance. Any joint accounts will be split 50:50.

Many care homes will not accept the rates paid by local authorities. Instead, they may request a top-up from the family to accept the admission.

What happens if my property is my only asset I own when I need to move into a care home? How long will it take to release funds from it?

Do contact the care home who can advise you on their policy. You can also speak to your local authority about the 12 week property disregard scheme. This is when social services fund your fees while you sell your home. You may still need to pay a top-up if the local authority only pays at their rate.

What if I don’t want to sell my house?

You may be eligible for a deferred payments scheme. This is where the local authority pays your fees and takes a charge on your house. However, they will also charge you interest. All local authorities operate the scheme slightly differently. You will need to contact yours directly to find out its specific terms and conditions.

When will the NHS pay for care home fees?

The NHS will meet you care home fees if you have complex health needs. This funding, known as Continuing HealthCare (CHC), is not means tested. However, there are very strict criteria and most nursing home residents are not eligible. There is more guidance on the NHS website.

Are there any allowances I can claim to help with fees?

If you have less complex nursing needs, you may be eligible for the NHS funded nursing contribution (FNC). This is not means tested and is around £158 a week.

It may take some time to apply for this as the NHS will need to carry out an assessment but the care home should be able to help. This contribution will be paid direct to the home. At Brendoncare, we deduct this from your fees after we receive it.

If you are paying your own fees, make sure you claim Attendance Allowance. This not means tested and most care home residents are eligible. The rate depends on your needs but you can get between £57-£85 a week. Further guidance is available from Age UK.

What does the care home fee cover?

The fee should cover your accommodation costs, meals and essential care. Before you choose a home, check out what extras are chargeable. For example, hairdressing, physiotherapy and chiropody are often charged on top of fees.

What should I do with the money after selling my house?

We would recommend that you consult an independent financial advisor about investments and how to keep them secure, especially if you have sold property. They can give you advice on how to invest any cash from property sales.

The Society of Later Life Advisers can provide you with a list of advisers.