Once you have decided that your elderly parent or relative needs some form of care - more than you can help them with - then it is time to consider all your options. There is plenty of information, and help, out there to help you work out how you can fund a place in a residential care home, however if you feel that the home care / live in care route is more suited to your loved one then you may be confused about how you can fund that help.
Of course, no social care is free and for many families, the financial implications of funding necessary care can cause some concerns. There are a couple of things that you should take into consideration when thinking about this, the amount that you pay will depend entirely on what level of assistance is required, and also what assets a person has. It is also a good idea to seek an assessment of needs from the local council, this will help to work out what level of assistance is needed.
Self-funding vs funding
There are a growing number of people who are funding their own care. If the person looking for care has capital, in the form of any income or savings over the amount of £23,350, then they will be expected to cover all the fees linked to their care themselves – this is self-funding. If you have capital of less than £14,250 then the local council will pay for you care, but they will take any income into consideration.
It is worth noting that there are certain types of income that are not always included in any means test that is carried out to determine income, these include certain types of disability benefits and pensions. Some forms of capital are also not taken into consideration.
If you are looking at live in care rather than moving into a care home, then the means test will not take into account the value of your home – after all you will need this to live in!
Paying for live-in care will not be cheap, although it may not actually cost you any more than the cost for a care home, but it is a good idea to make sure that you have all the financial support you are entitled to. Make sure that you are claiming all the benefits that are relevant to your circumstances.
• Attendance Allowance – Paid to people over the age of 65 this is a benefit for those people who need extra help to remain independent at home, this can be due to disability or illness.
• Personal Independence Payment - this is a payment that can be made to people under the age of 65 instead of Attendance Allowance.
• Carer’s Allowance – if you have a carer you may be entitled to this payment.
All of these benefits are not means-tested and are not taken into account as part of your income.