How to fund a care home
How do I fund a care home?
There are several ways to fund a care home placement, and your funding options are dependent on the resident’s assets. It can be a stressful time, and we want to make this process as simple as possible so you can focus on finding the right home for that person close to you.
As Millennium Care’s Financial Controller, I want to make the financials as simple as possible. I hope this guide helps you in your journey!
Asset Assessment
The first step is to understand how many assets the resident has; the threshold for this in England is currently £23,250.
Care home costs in the UK vary, but on average are between £700 and £1,200 per week. The cost of care is often dependent on the level of care the resident requires. For example, specialised nursing and dementia care costs more than residential care.
Above £23,250
If your loved one has assets worth over £23,250, the resident would be classed as self-funding, or private, and they are required to pay their own fees for their care. Assets refer to more than just cash or money in the bank; assets can often be tied to property, most commonly houses.
If the assets are tied up, residents can arrange for deferred payments with their local authority; this is where the Council will support the finances while you get everything in order.
For example, the resident may have £10,000 in the bank, which would bring them below the asset thresholds; however, if they own their house, which is valued at £100,000, then they will be above the thresholds and therefore have to pay for their care.
When a resident gets closer to the threshold, the home will be notified and discussions will take place around how the resident’s care will soon be funded.
Below £23,250
If the resident has assets less than the threshold, then they may qualify for local authority funding. To confirm this, they will have to take part in a funding assessment where the local authority will agree to pay for the entirety of a resident’s fees or a portion of them.
Where the local authority pays a portion of the fees, a third party top up is required, this is often paid by the resident’s family members, but cannot be paid by the resident themselves.
The third party top up is an agreed amount with the care home provider that helps cover the total fees.
CHC Funding
The last type of funding is CHC Funding. This is full funding awarded by the NHS and is eligible for those with complex and ongoing health needs.
CHC funding is not means-tested and is more common when a resident has nursing needs.
Additional Support
Funding a care home is a major financial decision. By understanding your options, self-funding, local authority support, NHS coverage, and benefits, you can make informed choices that ensure comfort and security for yourself or your loved one.
The Finances Department at Millennium Care is always on hand to help you answer funding-related questions. They can provide guidance, information and financial tips to make your and your loved one’s care journey as smooth and straightforward as possible.
Sinead Jones
Financial Controller at Millennium Care
