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Help to pay for your care if you're running out of money (self-funding)

Help To Pay For Your Care If You're Running Out Of Money Panel

The cost of adult social care can be a significant concern, especially if your financial resources are limited. As you grow older, it's natural to worry about how you'll cover the cost of care if you need assistance with daily activities like washing, dressing, and getting around.

Unfortunately, few of us can afford to pay the high cost of long-term care out of our day-to-day income. However, there is support available.

However, there is financial assistance available for eligible individuals. In general, if your savings and assets exceed £23,250, you will be responsible for paying the full cost of your care. But if your savings are below £23,250, you may be eligible for benefits or other financial assistance.

To check if you qualify for any help with costs, you can ask the council for a financial assessment (means test).

If you prefer, you can arrange and pay for care yourself without involving the council.

It is essential to plan ahead or ask someone to help you if you are struggling to pay for your care and starting to run out of money. Don't wait until you have run out of funds before seeking assistance.

Request an assessment and find out if you are eligible for funding

To find out if you are eligible for funding, the first step is to request a care needs assessment from the council. 

The council is legally obligated under the Care Act 2014 to provide support to individuals with eligible needs, including funding care for those who cannot afford it themselves.

Even if you have previously undergone an assessment and were deemed ineligible, it is advisable to request a reassessment if your circumstances have changed, such as your needs or finances.

The purpose of the assessment is to determine your specific needs and identify the best possible care for you.  It also helps in deciding whether you are eligible for funding, provided that you cannot afford to pay for care yourself.

Under the Care Act 2014, the three key criteria that your needs must meet to be considered eligible include:

  • Your needs or difficulties are because of mental or physical illness or impairment, not other factors.

There are daily tasks you must do to look after yourself that you cannot perform without at least two of the following:

  • Extreme pain, distress or anxiety
  • Assistance or prompting
  • Endangering somebody else in your home or care home
  • Taking significantly longer to finish the task than is expected
  • Being unable to do the tasks you struggle with significantly impacts your wellbeing

Seek independent financial advice 

Before making any big financial decision, it's important to speak to an independent financial adviser to discuss which option is best for you.

Look for an adviser with the specialist CF8 qualification. This means they're qualified to advise on funding for long-term care.

They'll be able to explain all the costs and risks, and can help with other things, such as arranging your will or setting up a power of attorney.

Find a specialist care fee adviser in your area with:

Care and support options from the NHS

NHS continuing healthcare

NHS continuing healthcare is funding available for people who qualify as having what is known as a primary health need. If you are eligible, your care home fees will be paid for by the NHS.

Eligibility is not based on a particular diagnosis. Instead, healthcare professionals will look at how your condition affects your breathing, mobility, nutritional intake, continence, communication, and other factors.

Find out more about NHS continuing healthcare.

NHS-funded nursing care

If you do not qualify for NHS continuing healthcare, you may still be eligible for NHS-funded nursing care. This is when the NHS covers the costs of any care you receive from a registered nurse while you are in a care home.

For those who need nursing care, this could help to reduce your costs; in some instances, the rate is paid directly to the care home and deducted from your fee.

To be eligible, you must live in a care home that is registered to provide nursing care, be ineligible for NHS continuing healthcare funding, and have been assessed as needing care from a registered nurse.

Find out more about NHS-funded nursing care

Options to help pay for your care if you're running out of money

Before you do anything, make sure you're claiming everything you're entitled to. This could help top up your income if you don't qualify for funding.

You may be eligible for benefits like Attendance Allowance and Personal Independence Payment (PIP), which aren't means-tested.

Attendance Allowance

Attendance Allowances are a non-means-tested benefit for those over 65 who need help with personal care. This means it doesn't matter how much money you have or how much you earn.

You might be entitled to it if:

  • you're at State Pension age or over
  • you need help with personal care because of illness or disability
  • you currently pay your own care costs (you can't usually get it if your local authority pays for your care home).

You can apply once you've needed care for at least six months, or immediately if you're terminally ill.

The amount you'll get depends on the care you need. For example, if you need help all the time or just during the day or night, this might be different from the care you're currently getting.

Find out more about Attendance Allowance, including how to claim.

Disability benefits and grants

If you have a disability or long-term health condition, you may qualify for Personal Independence Payment (PIP) or Disability Living Allowance (DLA).

A grant is a donation that you don't have to repay. Many UK charities and trusts provide grants to help with the extra costs of ill health or disability.

Find out what grants are available and how to apply by reading the Money Helper's charitable grants for ill or disabled people guide.

Carer's Allowance

If you have a friend or relative who provides at least 35 hours of care for you each week, they could claim a carer's allowance.

Council tax discounts

If you need a larger or adapted property because of a disability or you have a severe mental impairment, you might be entitled to pay no or less council tax.

If you move into a care home and your property is left empty, you usually won't pay council tax or rates until it's sold.

Find out more about council tax discounts

Pension credits

Pension credits are an income-related benefit that tops up your weekly income to a guaranteed minimum level. It's made up of two parts: guarantee credit and savings credit.

Find out more about pension credits

12-week property disregard

If you are considering living in a care home permanently and need to use the value of your property to fund your care home fees, you may be eligible to receive financial support from the council for up to 12 weeks. During this time, the council must not include the value of your property in your financial assessment. This is referred to as the 12-week property disregard.

Depending on your income and other savings, the council may contribute to your care home fees during this time or until you sell your property, whichever comes first. To qualify for the 12-week property disregard, your savings (excluding the value of your property) must be below the savings threshold of £23,250.

It's important to note that the amount local councils will give you may vary. If you choose to live in a care home that is more expensive than the council has agreed to pay for, you will need to find the extra money during the 12 weeks or choose a cheaper alternative.

To illustrate, let's consider two examples:

  • Alice owns her own home and has £10,000 in savings. Since she has less than £23,250 in savings and lives in England, she is eligible for the full 12 weeks of free care.
  • David has £25,000 in savings, which is over the threshold of £23,250. If one week in care costs £1,000, David would need to pay for his care for two weeks until his savings come under the threshold of £23,250.

Deferred payment scheme

A deferred payment scheme can be useful if your savings are less than the upper capital limit of £23,250 and all your money is tied up in your property.

The council pays for your care home, and you repay it later, when you choose to sell your home or after your death.

You can get more information from:

Other options for funding your long-term care

While not ideal for all situations, there are alternative funding solutions you might consider:

  • Rent out your home
  • Cash in savings and shares
  • Sell things you own, such as art, antiques, or collectibles. Could you sell a car, a second property, or other valuables to help cover care costs? Weigh the financial benefits of selling an asset against its sentimental value.
  • Check for insurance policies that could cover care costs

Check what other benefits you can claim

Whether or not you have care needs or a disability, it's worth checking if you qualify for any extra support.

Use the government's benefit calculator on the Money Helper website to quickly check what you could get.

Who can help me?

The council can be contacted by calling 01752 668000, or you can get free, independent advice on paying for care from either:

Can I avoid selling my home?

This is a common question, and you won't have to sell your home to pay for help in your own home.

But you might have to sell your home to pay for a care home, unless your partner carries on living in it.

 

Will I have to pay my loved one's care home fees if they run out of money?

A big concern for family members of care home residents, particularly the next of kin, is that they will be legally obliged to pay their loved one's care home fees if the person cannot pay themselves. This is not the case; unless you have signed a contract agreeing to pay the fees or a top-up fee, you are not financially responsible.

When carrying out a financial means test, the council will not include your income or assets, only those of the care home resident. If you have joint assets with the care home resident, they will be considered to own 50% of each of those assets. If you jointly own a property, their share of it will only be taken into account if you don't live there anymore.

 

What to do if you're in a care home

It's important not to miss a payment to your care home. Instead, apply for funding at least three months before your savings and assets drop below the thresholds.

Check your contract to understand your rights. For example, some care providers offer the option to stay while you apply for funding, or they may accept the lower rate from the council.

Another option is to see if you can move to a more affordable or shared room within the same home.

You might also be able to top up the amount you and the council can afford, which is often done by family members. Care costs increase each year, so make sure whoever is paying understands how much they'll need to budget for.

If you're unable to afford to stay in your current care home, you might need to move.

Find out more about your options on the Age UK website.

 

What to do if you're getting care at home

Use the government's free budget planner on the Money Helper website to check if there are any areas where you can cut back.

Another way to increase your income is to reduce the amount you spend. This might not be possible, but here are some things to try:  

  • cancel subscriptions or services you don't use, or could live without 
  • see if you qualify for cheaper low-income social tariffs for gas and electricity
  • check if you can save by switching providers, including:
  • if you pay credit card interest, consider moving it to an interest-free balance transfer card
  • see if you can get cheaper water bills with a water metre
  • do your food shopping at a cheaper supermarket or buy cheaper brands.

When cancelling, always check the terms of your contract, as you might have to pay a fee to leave early.

 

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