Paying for care
We are here to help you understand and consider all options to help you
achieve the most suitable arrangement for your family
Helping you understand how to pay for your care
Deciding how to meet the cost of long-term care has become an increasingly daunting process for elderly people and their families. In particular, people are frequently left confused regarding what funding is available from the state.
Our team of professionals is well aware of this and is here to help you understand and consider all of the options available to you, both through our in-house knowledge and through relationships we have with specialists in financing long-term care for the elderly. It is vital that you are able to achieve the most suitable arrangement for you and your family.
Families typically have four main care funding options available to them…
1. Benefits entitlements
To help pay for your care it’s important to ensure that you’re claiming all of the benefits you’re entitled to. These benefits are usually easy to apply for and they often aren’t means-tested, so don’t take into account your income and savings.
Attendance Allowance is available at two rates: a lower rate, for those who need help during the day or the night and a higher rate, for those needing care during both the day and night. The current weekly figures are £59.70 lower rate and £89.15 for the higher rate.
You can apply for Attendance Allowance by completing the online form at www.gov.uk/attendance-allowance or by obtaining a form from a larger Post Office, Citizens’ Advice Bureau, Age Concern Shop, or the Benefits Agency themselves.
Individuals needing care under the age of 65 will still qualify for an allowance, but this is paid in the form of a Personal Independence Payment (PIP) (formerly Disability Living Allowance). You can claim for PIP or Attendance Allowance, but not both. You can apply for PIP by calling the Department of Work and Pensions on 0800 917 2222.
2. NHS Continuing Healthcare funding
Some people with ongoing significant health needs can get their care paid for through NHS Continuing Healthcare. Your eligibility is determined by an assessment, which looks closely at your needs before recommending the level of care you should receive. NHS Continuing Health Care is non means-tested but the qualification criteria are strict. If you are eligible, you may be given the option of a Personal Health Budget to enable you to choose where and by whom you wish to be cared for.
- What is NHS Continuing Healthcare?
- Carer's Allowance
- How does the assessment process work?
- Personal Health Budgets
3. Local Authority funding
If you require hourly care or live-in care, local authority funding could help pay for the associated costs. However, unlike healthcare funding, local authority funding will be means tested and how much you pay towards your home care depends on a number of factors, including your income and savings. Everybody is entitled to a care needs assessment and a financial assessment from their local authority to determine what kind of care and support would help them and how much they are responsible for paying towards their care.
If you’re eligible for help, your local authority will provide you with a personal budget to pay for this support. It’s up to you how you want to use your personal budget to meet your eligible needs. It can be used in one of three ways:
- your local council can manage an account
- a third party can manage an account
- you can manage a Direct Payment
With a Direct Payment cash payments are paid directly into a bank account specifically set up to receive the personal budget (not your usual savings account). You can choose how to spend this money to meet the needs set down in your agreed care plan, which maximises your choice and independence and enables you to use a care provider of your choice. If necessary, you can also top up the payments yourself to cover any shortfall.
4. Privately funding care
There are now various options available to you in seeking to finance your care in a simple, sustainable way. Most families are keen to ensure that they don’t have to worry about what might happen in the future whilst also protecting as much of their existing capital as possible. Some of the financial policies available include Immediate Care Plans (also known as ICPs, Immediate Annuities or Care Fees Payment Plans) and Equity Release (whereby you can raise capital, income or a combination of the two from your home whilst continuing to live in it).
Immediate Care Plans (also known as ICPs, Immediate Annuities or Care Fees Payment Plans) are tax efficient financial policies which are specially designed to cover all or part of a person’s care fees. Once put in place, a plan pays an agreed tax-free amount at regular intervals, directly to the care provider, for the remainder of the person’s life. An upfront lump sum is required to purchase such a plan which is calculated depending on age and health. The benefits of an Immediate Care Plan are that they provide peace of mind that care fees will be covered in the future and they enable a person to have financial independence, dignity and choice of where they receive care.
- your local council can manage an account
- a third party can manage an account
- you can manage a Direct Payment
With a Direct Payment cash payments are paid directly into a bank account specifically set up to receive the personal budget (not your usual savings account). You can choose how to spend this money to meet the needs set down in your agreed care plan, which maximises your choice and independence and enables you to use a care provider of your choice. If necessary, you can also top up the payments yourself to cover any shortfall.
