A guide to financing residential care in 2022
In this guide to financing residential care in 2022, we look at the differences between state-funded and self-funded care and who is eligible for financial support.
If an individual has below £23,250 in savings their council may be able to pay towards their care. This threshold is set to rise to £100,000 in October 2023 which will mean that more people will be able to apply for financial help.
The amount that can be claimed will depend on how much the individual can afford to pay and the type of care that they need. To determine how much financial help can be offered, a needs assessment will be completed. These are free of charge and enable the council to means test individuals to determine how much they will be required to pay for their care.
It could be that the council pays the maximum amount which may then need to be topped up, the council makes a contribution, or the individual is not entitled to funding.
Should an individual be eligible for state funding, the council will calculate a personal budget which can then be paid out in one of three ways: a payment into their bank account, care paid for directly by the council, or through an organisation that arranges their care. Regardless of who is controlling their personal budget, the individual or their family will be able to choose the type of care they receive.
If care needs to be self-funded, the individual will need to arrange to pay for care themselves. However, some benefits can be applied for which could help, such as Attendance Allowance and Funded Nursing Care (FNC) for nursing care costs.
There are many ways in which an individual can finance their self-funded care, these include renting out their property, equity release, or applying for a deferred payment scheme. With a deferred payment scheme, their local authority will pay for their care and the cost will be claimed back through the sale of their property when they die.
If you’re looking for a care home for a loved one, contact our friendly team today to discuss their needs.