Care Home FeesSeptember 1, 2014 9:53 am
Who will pay my care home fees?
Choosing a care home for yourself or a loved one can be a difficult decision. As well as the location, facilities and level of care provided, you will also need to know how much it will cost and who will pay.
If you need to go into care and you have less than £14,250, the local authority will pay the costs but you will need to contribute any income you receive over £23.90 per week. If you have between £14,250 and £23,250, you will pay an extra £1 per week for each £250 or part of that sum between these amounts. If you have more than £23,250, you will usually need to pay for your care. The value of your assets includes your home.
The local authority will decide how much they will pay for your care. If you choose somewhere more expensive, another person can pay the extra for you but you will not be allowed to pay it from your own money below the £23,250 limit.
If you have to pay for your own care, the local authority will help for the first twelve weeks if you have less than £23,250 in savings. Beyond that, they will place a charge on your home so they receive the amount due to them when the property is eventually sold. If you do not wish to sell your home at this time, you may decide to rent it out to help fund your care. The local authority will not force a sale whilst a close relative, such as a spouse or adult disabled child, is still living there. They have discretion with regard to other relatives.
Deprivation of Assets
Do not be tempted to give your money away or rush into setting up a property trust to avoid care home fees. This will now be labelled as a deliberate ‘deprivation of assets’ and will not achieve your aims. The local authority will consider the timing and reasons for your actions. If they believe that you are trying to avoid having to pay for your care, the amount you have disposed of will be treated as ‘notional capital’ and added back on to your list of assets.
As people are now living longer and the number of people needing care increases, the issue of care home fees becomes more of a talking point. The government are coming under pressure to cap fees and protect our hard earned savings. The rules relating to care home fees may well change in coming months and years and it is always wise to seek legal and financial advice when considering how to plan for the future.
Please feel free to contact us if you’d like to discuss this issue further, telephone us on 01522 687500 or email email@example.com