Paying for care

Paying for care


When it becomes apparent that a care home is necessary, the question of funding such care arises. Although healthcare services are freely provided throughout the UK, this does not extend to social care within care homes. As a result, residents are typically expected to contribute to or cover the total cost of their care.

Please see our Frequently Asked Questions below for further assistance :

Local authority funding.

You may be able to gain some financial assistance from the local authority, although this is means-tested. In England, if you own your own home or have savings of £23,250 or more you’re unlikely to receive any funding.

There is also funding available from the NHS for those that have ongoing complex healthcare needs. This funding covers 100% of the costs of residential care but the criteria are complex and need detailed exploration.

Options for a homeowner

If you currently own your home, one of the most common ways to pay for residential care is by selling this. Certainly, if no one else is living in the property, this can be the easiest and most straightforward solution.

A further option for a homeowner, when there is no other occupant, is to rent this out. This can boost your income and also help to protect any savings that you may have. You need to bear in mind that rental income is taxable though.

You may also look to keep your home but release equity from this. This can see you accessing a lump sum that can be used to cover care home fees. It may be that you invest this sum so that you get a return, meaning that it lasts that much longer. The equity release would need to be repaid when you either died or sold the house. You would need expert advice before pursuing this option.

Homeowners also have the chance to enter into a deferred payment agreement. This is where the local authority covers your fees in the form of a loan. The loan is secured against your house and is repaid when you either sell the house or you die.

Other options to consider

While many people don’t have the funds to pay for all of their care fees, it is worth exploring what other forms of income that exist. It could be that you have savings, a private pension and maybe investment properties. The combined income from these sources could go someway toward covering the fees.

There are also options such as immediate needs annuities and investment bonds for long-term care to be considered. These are both able to provide ongoing income and/or lump sum payments.

What happens when funds run out?

If you are self-funding, you may be worried that the time will come when your money runs out. When this is the case, the local authority has a duty to assist. Once your income and assets fall below the set threshold, there will be contributions made towards your fees.

If residential care is something that you’re considering, now is the time to seek advice so that you can find the most suitable funding method for you.

Esmere Gardens fees encompass a comprehensive array of services and amenities to ensure residents’ comfort and well-being. These include personalised care as outlined in individual care plans, furnished accommodation with exclusive use of a room, and a selection of meals, snacks, and non-alcoholic beverages. Residents also enjoy full access to communal areas within the home, along with participation in various activities and events, all while benefiting from laundry services and the provision of bed linen and towels.

Furthermore, the fees cover essential services such as liaison with healthcare professionals like GPs, social workers, and district nurses (additional charges may apply), as well as access to amenities like central heating, hot water, lighting, and internet. Residents can indulge in private dining experiences, subject to terms and conditions, and enjoy alcoholic beverages from the home’s restaurants and bar within the bounds of a fair usage policy. Additionally, the fees encompass essential maintenance and repair services for the home and its furnishings, insurance coverage, and the provision of emergency facilities such as fire alarms and extinguishers. Also services such as chiropody, hairdressing, private transportation, and pet care are available, ensuring residents’ needs are comprehensively met.

There is no deposit required for admission, however, monthly fees are to be paid upfront.

Yes, fees do increase annually. This adjustment is determined by two distinct cost price indices. Firstly, the CPIH index accounts for changes in the cost of living, covering expenses like food and laundry supplies within our Nursing Homes. Secondly, we consider the rise in the National Minimum Wage (NMW) as an indicator of increased staffing costs.

The notice period varies depending on the circumstances. For respite stays, a minimum of one week’s notice is required, with a minimum stay of one week also applying. During the four-week trial period, one week’s notice is necessary. After the trial period ends, the notice period extends to four weeks.

Healthcare is free across the UK, but social care in care homes is not typically covered. Residents may need to pay some or all care home costs themselves.

You might be eligible for financial assistance from the local authority, but it is means-tested. In England, if you own a home or have savings over £23,250, you likely won’t qualify for funding.

The NHS provides funding for individuals with complex ongoing healthcare needs, covering 100% of residential care costs. However, the qualifying criteria are stringent and require a detailed assessment.

Homeowners can fund care by selling their property, especially if it is unoccupied. Alternatively, renting out your home can provide income while preserving savings, though tax implications apply.

Equity release allows homeowners to access a lump sum from their property’s value to pay for care. This must be repaid upon the homeowner’s death or when the home is sold. Professional advice is essential before choosing this option.

A deferred payment agreement involves the local authority paying care fees as a loan secured against your home. The loan is repaid when your home is sold or from your estate after death.

Other financial resources may include savings, private pensions, and income from investment properties. Financial products like immediate needs annuities and investment bonds can also offer income or lump sums for care.

If you’re self-funding and your resources dip below the threshold, the local authority is obligated to contribute towards your care home fees.

Before entering residential care, your local authority will conduct a financial assessment to determine how much you can afford to pay. This assessment will consider your capital, including savings and property, and your income, such as pensions and benefits.

Yes, private or state pension income can be used to pay for residential care. You can direct this income to the care provider as part of your payment plan.

If the local authority contributes to your care costs, but you choose a care home that costs more than the authority’s standard rate, you or a family member may need to pay the difference. This additional payment is known as a ‘top-up fee’.

You may be eligible for certain benefits, such as Attendance Allowance or Pension Credit, which can help with residential care costs. Consulting with a financial advisor or local authority can clarify what benefits are available to you.

Certain financial products and arrangements, like a life insurance policy or a discretionary trust, can help preserve your capital for your beneficiaries while you receive care. Legal and financial advice is essential in these cases.

Deliberate deprivation of assets, where you gift your assets to avoid paying for care, is generally looked upon unfavorably by local authorities and can result in you still being assessed as if you owned those assets.

The care cap is a government policy designed to limit the total amount an individual has to spend on their own care over their lifetime. Once you reach this cap, the local authority should cover ongoing care costs. However, it’s essential to understand what types of care are included under the cap and when the cap will take effect, as policies can change.

There can be differences in how funding is allocated for residential care versus nursing care. Nursing care often requires more specialist medical support and, as such, may qualify for additional funding like NHS Continuing Healthcare.

When choosing a payment option, consider the long-term sustainability of the funds, the potential impact on inheritance, your eligibility for public funding, and how your choices may affect your quality of life and care.

There can be tax implications, particularly if you sell assets or receive income from investments to pay for care. It is advisable to consult with a tax professional to understand your potential liabilities and tax-efficient ways to fund care.

A third-party top-up is when someone other than the resident, such as a family member, agrees to pay the difference between the local authority’s contribution and the cost of a care home. This allows the resident to stay in a care home of their choice that may be more expensive than the local authority’s standard rate.

When considering residential care, understanding the financial implications and exploring all available funding options is crucial. Professional advice can help you identify the best strategy for your situation.

Request a Brochure


Our new Moreton-in-Marsh Care home is now open! To download the Esmere Gardens care home brochure, click below to enter your details and to stay up to date with developments, news and events.

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Book a tour


During a tour of Esmere Gardens, you will be able to view all that the home has to offer at your leisure, ask any questions you may have and take a tour of this beautiful market town. Click below to arrange a show around.

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Request a Brochure


To download our brochure, click below to enter your details and to stay up to date with developments, news and events.

REQUEST A BROCHURE

Book a tour


During a tour of Esmere Gardens, you will be able to view all that the home has to offer at your leisure, ask any questions you may have and take a tour of this beautiful market town. Click below to arrange a show around.

BOOK YOUR VIEWING