Funding live-in care
Funding live-in care
Funding live-in care is a significant consideration faced by many families making decisions about long term care. Knowing your options can make the journey much smoother. At Consultus Care and Nursing, we are here to help you better understand funding and financing options, ensuring your loved one receives the best possible care without added financial worry.
Exploring your funding options
When planning live-in care you need to understand the different ways you can fund it. This guide walks you through the options available to you, including self-funding, local authority support, NHS Continuing Healthcare, and more. By exploring these paths, you can find the solution that best suits your personal circumstances.
Local authority funding
If your assets fall below the upper limit financial threshold, you may be eligible for part of full funding from your local authority. This can significantly reduce the financial burden on your family and ensure that you or your loved one receives the care you need with financial support.
Understanding local authority funding
To determine eligibility for funding, you can request a financial assessment from your local council. This assessment evaluates your financial situation, including your income, savings, and, in some cases, the value of your home. The council will also consider any benefits you receive.
If the assessment shows that your assets and income are below the threshold, the local authority may cover the entire cost of your care. This is typically the case for individuals with very limited financial resources. If you have some financial resources but not enough to cover the full cost of care, the council may offer partial funding. In this scenario, the council contributes towards your care costs, and you are responsible for covering the remaining balance. The thresholds in more detail:
If your assets total more than £23,250, you will be expected to pay for the entirety of your care costs.
If your assets total between £14,250 - £23,250, the local authority will partly pay for your care costs.
If your assets total below the lower limit, £14,250, the local authority will pay for your care funding in full.
Personal budget / direct payments
If you qualify for local authority funding, you may receive a personal budget, which gives you more control over how your care is arranged. You can choose to receive this as a direct payment, allowing you to arrange and pay for your care directly, or you can have the council manage the budget on your behalf.
Attendance allowance
If you are over 65 and require help with personal care due to illness or disability, you may be eligible for attendance allowance. This benefit is designed to help with the extra costs of care, and is not means-tested, so is available regardless of your income or savings.
How attendance allowance can help:
Non-means-tested support
Attendance allowance is not based on your financial situation, which means it’s available to anyone who qualifies, regardless of income or savings. This makes it an essential support mechanism for those funding their care independently.
How to apply
You can apply for attendance allowance through the Department for Work and Pensions (DWP). The amount you receive depends on the level of care you need, with higher rates available for those who require care throughout both day and night.
Using the allowance
The money from attendance allowance can be used to help pay for your live-in care or any other care-related expenses, giving you greater financial flexibility.
NHS Continuing Healthcare
NHS Continuing Healthcare (CHC) is a care package provided and fully funded by the NHS for individuals with complex, on-going health needs. If you are assessed as having a 'primary health need,' the NHS covers the entire cost of your care, whether you are receiving it at home or in a care home. This can include personal care (such as assistance with washing and dressing), nursing care, and other necessary healthcare services. Unlike other forms of care funding, NHS Continuing Healthcare is not means-tested, meaning it is based solely on your healthcare needs rather than your financial circumstances.
Talk to us today
Give us a call to discuss your needs with one of our friendly, expert Care Advisors. They will guide you through your options to ensure you make the right choice for you and your family.
Who is eligible for NHS Continuing Healthcare
Eligibility for NHS Continuing Healthcare is not determined by a specific medical diagnosis. Instead, it is about the nature, intensity, complexity, or unpredictability of your health needs.
You might be eligible if you:
Have significant on-going physical and/or mental health needs.
Require care and support primarily focused on addressing health needs.
Have a condition that is unlikely to improve significantly over time, necessitating long-term healthcare.
Eligibility is assessed through a thorough evaluation process carried out by your local Integrated Care Board (ICB). It is important to note that even individuals with severe disabilities or chronic illnesses may not automatically qualify.
How to apply for NHS Continuing Healthcare?
If you think you or a loved one might be eligible for NHS Continuing Healthcare, the first step is to discuss it with your healthcare provider, such as your doctor, nurse, or social worker.
They can initiate the assessment process on your behalf. Alternatively, you can directly approach your local Integrated Care Board (ICB), formerly the Clinical Commissioning Group (CCG) and explain why you believe you should be considered for NHS Continuing Healthcare. For more detailed guidance, you can visit the NHS website to find your local ICB and access relevant resources.
How the NHS Continuing Healthcare assessment works
Understanding this assessment process is crucial for securing appropriate care. If you believe you or a loved one might qualify for NHS Continuing Healthcare, starting the process early can help ensure timely and adequate care.
Enquire now
Get in touch with one of our friendly Care Advisors who will guide you to make the right choice for you or your loved one.
Self-funding live-in care
For many families, self-funding live-in care or paying privately for the care you need is the only option available. If your assets exceed £23,250, you may need to privately fund your care. This threshold is based on a combination of your savings, investments, and, in some cases, the value of your home.
It is important to note that this financial threshold can vary slightly depending on where you live in the UK, so it is advisable to check with your local council for specific details.
How self-funding works
When determining if you need to self-fund, a calculation of total assets are considered. Assets considered in the financial assessment include bank and building society accounts, stocks, shares, most investment products, national savings, and premium bonds. Income from government benefits, as well as any personal or occupational pension plans, are also included. Additionally, the value of property and land (minus any outstanding mortgage) is taken into account. For jointly held assets, they are typically split evenly between the owners, regardless of who contributed more to the asset.
If your assets exceed £23,250 (or the relevant threshold in your area), you will be responsible for covering the full cost of your care. If your assets total less than the lower limit of £14,250 in England, then 100% of your care should be funded.
Given the high costs associated with long-term care, it is advisable to plan ahead. This might involve restructuring your finances, exploring investment options, or considering alternative ways to fund care (such as equity release).
Equity release
For homeowners, equity release is a popular option to fund live-in care without needing to sell the family home immediately. Equity release allows you to access the value tied up in your property while continuing to live there, providing you with the capital needed to fund your care.
Understanding equity release
Equity release refers to a range of products that allow you to access the equity (cash) tied up in your home. The most common form is a lifetime mortgage, where you take out a loan secured against your home, which is repaid when your home is sold, either when you move into long-term care permanently or after your death.
How it works
With a lifetime mortgage, you borrow money against the value of your home, but you don’t have to make monthly repayments. Instead, the loan, plus any interest, is repaid when the property is sold. This option allows you to stay in your home while using its value to fund your care.
Equity release can be a flexible way to access funds, but it is essential to consider the long-term implications, such as the effect on your estate and inheritance. Interest can accumulate over time, reducing the amount of inheritance you leave behind. It’s crucial to seek independent financial advice to understand the full implications and to ensure that equity release is the right option for you.
Choosing the right product
The equity release market offers a range of products, each with its own features and benefits. Working with an independent financial advisor can help you select the right product that meets your needs and circumstances.
Home revision plans
Home reversion plans offer another way to access the equity in your home, providing an alternative to lifetime mortgages. With a home reversion plan, you sell a part of (or all) of your home to a reversion company in exchange for a lump sum or regular payments. Unlike a lifetime mortgage, there is no interest to pay. Instead, the reversion company receives their share of your home’s value when it is eventually sold.
Alternative ways to fund live-in care
Seeking guidance from SOLLA
Navigating the complexities of care funding can feel overwhelming, but you do not have to do it alone. The Society of Later Life Advisers (SOLLA) helps connect families with accredited financial advisors who specialise in later life planning, including care funding. A SOLLA accredited advisor can guide you through the options, helping you make the best decision for you.
How we can help
At Consultus Care and Nursing, we understand that every family’s situation is unique. We are here to help you navigate the financial aspects of care, ensuring that you are directed to the best solution for your loved one’s needs. Whether you are just beginning to explore long term care options or need assistance with financial planning, our compassionate Care Consultants are ready to support you every step of the way.
Why choose Consultus Care and Nursing?
One of the longest-established and most trusted providers
Founded in 1962, we have always been innovators in live-in care and live-in nursing. With over 60 years’ experience, we are one of the country’s longest-established, most highly recommended and experienced providers.
Unrivalled choice and control over your care
We understand that every person’s needs are different and every family’s situation is unique. With our choice of fully managed live-in care and nursing, and our introductory service, we offer more flexibility and personalisation than any other provider.
Highly trained nurses and carers
We are nationally recognised for the quality of our nurses and carers. With market-leading training, delivered at our own, multi-award-winning training centre (a Skills for Care Centre of Excellence), they provide exemplary, compassionate care tailored to individual needs, offering total peace of mind for clients and their families.
Expert care and support, dedicated to you
Our Care Consultants oversee our nursing and managed care services supporting only a small number of families. This means our service is truly personal, with unrivalled support and continuity of care. Reassurance that we are there when you need us most.
Family-founded, family-owned
We continue to be a family-owned and family-managed business. The largest wholly family-owned live-in care provider in the UK, we focus on what our clients and their families need from a high-quality care service, not on meeting investors’ expectations.
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