Paying for care

This section contains information on paying for care, including:
• Assistance from the state
• Assistance from the NHS
• Sources for further advice
• Other Benefits
• Private Insurance policies to pay for care

Assistance from the state

The state only provides full assistance for people who are the least well off. Depending on your capital, you will have to pay at least some of the costs towards
accommodation and personal costs in a residential nursing home. There are three levels of assistance which are determined by the extent of your capital. Briefly, the levels of support are as follows:

1. Your local authority may pay for the total cost of your residential or nursing home care if your capital is less than £13,000.

2. Your local authority will still pay for your accommodation and personal care, but not fully, if your capital is between £13,000 and £23,000. However for every £250 you have over the lower amount, they will subtract £1 per week from the money they contribute.

3. If your capital is over £23,000, you will have to pay the full costs of your accommodation and personal care. If your capital falls below the £23,000 while you are in a care home, you will become eligible for help from the local authority as described in section 2 above.

If the home you choose does not accept what the local authority is willing to pay, you could still move into the home of your choice by arranging a 'third party contribution' from another source.

Although your house would be included in your assets, you would be expected to sell it only if you live alone, or you are both moving into a care home. The value of your home, is disregarded for 12 weeks after your admission to permanent nursing or residential care.

In addition, it is expected that you will use all your income - including your pension, benefits, and so on - to fund your care but can keep £20.45 a week spending money.

Assistance from the NHS

Under the terms of "free nursing care" the NHS will pay for "any services provided by a registered nurse involving the provision of care, or the planning, supervision or delegation of the provision of care, other than services which do not need to be provided by a registered nurse." This contribution applies whether your care is funded privately or by the local authority. If you are paying your own fees, you will still have to pay for accommodation and personal care (such as help with dressing or bathing). Each individual is assessed and a level of funding established according to tthis definition and within 2 bandings defined by the Department of Health.

High
For those with complex nursing care needs at £146.30 per week.

Medium
For those with standard nursing care needs at £106.30 per week.

These are the prices as at 1st April 2009

Sources for further advice

Age Concern	0808 808 6060
Help the Aged	0808 800 6565
Counsel and Care	0845 300 7585
Benefits Agency	0800 88 22 00
Nursing Homes Fees Agency	0800 99 88 33
Eldercare Solutions Ltd	01707 368 945

Your local Social Services department should also provide you with any information you need.

Private Insurance policies to pay for care

Immediate care insurance may be suitable if you currently considering moving into a care home. It involves paying a single large sum at the time you decide you need care. The cost is based on how long the insurer thinks you'll need care for, and the level of care you need. While the cost can seem a large amount, it should provide a fixed payment for as long as you need care, and can protect the rest of your assets.

The payments are tax-free if they are generally made directly to a care home and are portable if you decide to move to a different home.

Long-term care insurance, where you pay premiums over a lengthy period before you actually need care, is no longer widely available. If you have already taken out one of these policies it should still be honoured. All policies are slightly different. We suggest you speak to an independent financial adviser who specialises in care fees planning. Among the questions to ask are:

What are the benefits and for how long will I receive them?

What is the maximum amount the insurer will pay out per month?

Should I take out capital protection so that the balance of any lump sum is returned to my estate?

Are the benefits paid to me so that I can arrange my own care, or paid direct to the care home?

Are the benefits protected against inflation?