How you or a loved one funds a care home placement will depend on various factors, including health care needs, income level, and any capital such as savings or property.
Due to the complexity of care funding, we strongly recommend contacting your local authority’s adult services team for an assessment. If you need to fund or partially fund your own care, it is also advisable to consult an independent financial advisor. If you are self-funding your care, you can choose any care home that meets your specific needs.
Currently, if your capital exceeds £23,250, the local authority will not contribute to your fees. However, if you find that your capital is near to falling below £23,250, you should request a financial assessment from the local authority to determine if you qualify for funding assistance. In some cases, such as when a partner or close relative resides in your former home, your share of the property’s value may be excluded from the financial assessment.
Each person moving into a care home will be provided with a contract detailing:
- The room they will occupy
- Care and services (including meals) covered by the fee
- Fees payable for private funding
- Additional services not included in standard fees
- Rights and obligations of the people living in the care home
- Rights and obligations of the care provider
- Liabilities in the event of a contract breach
- Terms of placement and notice period for either party
Support from the Government
Depending on your personal circumstances, you may be eligible for government support to help cover some or all of your care costs. It is important to distinguish whether your primary need is health-related or social care-related. While this distinction can sometimes be unclear, generally, if you require the support of a qualified nurse or health care professional, your needs are likely classified as health care. Health care needs are funded by the NHS.
For individuals living in care homes, there are typically two NHS-funded options: Funded Nursing Care (FNC) or Continuing Healthcare (CHC):
Funded Nursing Care (FNC): This is a fixed contribution provided by the NHS to cover nursing support costs in a care home. Where an individual is paying for nursing care, an assessment will be arranged to ensure eligibility for FNC (2024/25 rate: £235.88 per week).
Continuing Healthcare (CHC): CHC is available to individuals with significant nursing needs and usually covers the full cost of care. The level of funding is based on the nature and severity of care needs and requires an NHS assessment to confirm eligibility.
When you contact your local council about care services, they will arrange a care assessment to evaluate your needs. If your needs are low or moderate, you may not qualify for funded care. If you meet their threshold, they will conduct a financial assessment and inform you of the outcome, your contribution, and the next steps.
