Care Home Funding at Field House
Making the decision to place someone into care is not an easy one and the transition of moving your loved one to private care homes, like our care home in Stourbridge, can be particularly tricky when grappling with care home funding. Private care homes, like ours, typically base funding on an individual’s overall capital, including savings and property, through a process known as a means test, paired with a care needs assessment. This combination provides a comprehensive understanding of an individual’s ability to fund their stay when paying for a care home.
It’s important to note that certain income streams, such as specific disability benefits and pensions, along with certain capital assets, may not factor into this means test. This provides flexibility in managing the resources available for care home funding, easing the process of paying for a care home.
Moreover, the NHS could be a crucial source of support for those with significant healthcare needs. Their contributions can supplement or, in some cases with NHS continuing healthcare, fully cover care home costs. This ensures that care home funding becomes a less burdensome process, providing peace of mind that quality care is accessible and manageable in our care home in Stourbridge and other private care homes alike.
Those who have more than £23,251 of Capital
If the individual requiring care has capital exceeding £23,251, they will need to self-fund their stay in the care home until the capital decreases to £23,250, at which point care home funding from the local authority kicks in.
The person’s house factors into their capital, except when:
- A spouse or partner resides in it
- A relative over 60 or a disabled relative lives there
- A dependent child (18 or under) is living there
- It’s within the first 12 weeks of requiring permanent care (12-week property disregard)
- Care is temporary
Once self-funding has brought capital down to the £23,250 threshold, it’s time to contact the local authority to organise care home funding.
In instances where care is suddenly required, leaving little time to arrange care home funding, our care home in Stourbridge offers a Property & Asset Disregard service. This service defers fees for an agreed period, providing breathing space to arrange the finances for care home funding.
Those who have under £23,250 of Capital
When an individual’s capital falls below £23,250, the local authority will assist with care home funding. The initial step involves reaching out to your local Adult Social Services for a care needs assessment, determining care requirements and the financial contribution towards care from the authority.
Regulations typically guarantee a selection of three local authority-funded care homes. However, some areas may not offer this automatically, prompting you to request alternative options. This allows you to make an informed decision after visiting potential homes, including private care homes like ours in Stourbridge.
Certain high-occupancy homes may request a top-up to the agreed local authority fee for accepting placement. Likewise, you have the right to choose a different council-funded care home, such as our care home in Stourbridge, if it isn’t among the authority’s options, subject to a few conditions:
- The home caters to your assessed needs
- The home or organisation agrees to the council’s terms
- Costs align with the council’s usual payments
- It’s a UK care home
Should you prefer, you can self-fund the difference between the local authority’s care home funding and the care home’s rate, offering more flexibility in paying for a care home.
Those close to £23,250 who will soon be eligible for funding
When an individual’s capital is dwindling and projected to reach the £23,250 threshold within approximately 6 months (usually around £45,000), it’s advisable to contact your local authority well in advance. This ensures that care home funding is prepared when needed, following the process detailed above for those with under £23,250 in savings.
Deprivation of assets
Care should be exercised with how the person handles their financial affairs prior to requiring care home accommodation. Giving away savings, income, or property to relatives or charity, for example, can be seen as a deprivation of assets. The council, in this case, may assess you as if you still had the money or property.
Do You Need Independent Financial Advice?
If you require assistance or advice in managing your finances, our Stourbridge-based private care home recommends Bespoke Advice Services. They provide financial support for residents and relatives, helping you navigate the funding process. Additional support and information can also be sought from organisations like Age UK or Age Concern.
Age UK has also published a helpful fact sheet detailing potential financial help from local authorities and advice on paying for a care home independently.
