Self Funding Care
Help self funders understand their self funding care options; understand care funding jargon and help to guide your self funding care actions.
Should you or a loved one require some form of long-term care, a natural question to ask is: how do I fund it?
The average annual cost for a Care Home in England is around £30,000; with life expectancy being so high, a lot of us are likely to discover a shortfall in how long we can afford to pay for our care.
|Type of care
||Average cost (2013/14)
||Cost over 4 years
||£28,500 per annum*
||£37,500 per annum*
*Source: Laing & Buisson
The Care Act 2014 will come into effect from April 2015 and is an overhaul of social care in England.
Fundamentally, the Act reforms how the law works and has prioritised people’s well being, needs and goals.
Councils must enable people to access independent financial advice to help steer them through the complexities of care funding.
While we all hope to remain independent for as long as possible, sometimes unforeseem health issues arise. A Lasting Power of Attorney allows you to appoint someone (known as an attorney) to make decisions on your behalf if you are unwilling or unable to do so yourself. More than one attorney can be appointed
If you find yourself in this situation and don’t have a Lasting Power of Attorney, the Court of Protection will appoint someone to act on your behalf.
This drawn-out, costly and restrictive process can be easily avoided by implementing a Lasting Power of Attorney well in advance and while you still have mental capacity.
If you require care, it is your right to receive a professional assessment of your needs by your local adult social services department. As part of the assessment process, they will calculate how much you have to pay.
If you have assets and property in excess of £23,250, you will typically have to pay all your care costs as a ‘self funder’.
Respite care is provided by residential homes for elderly people who require addititional support following an operation or illness, or to provide a regular carer with a well earned break.
Once an assessment has been undertaken, a care plan will be provided. This doesn’t necessarily mean that a person has to go into a residential or nursing home permanently. Often providing domiciliary care is preferable for the individual as they remain in their own surroundings and retain a level of independence.
Respite care can aso be provided where an individual has a short stay in a home to provide respite for either the individual or their carer.
Each year, thousands of people are told they have to self fund their long term care. At a time fraught with uncertainty and high emotions, it is only natural that an array of questions bubble to the surface. “How do I generate enough income to pay for my care?”, you might ask. “What type of care do I need?” “How do I protect my savings and family inheritance?” “Do I have to sell my home if I move into care?”.
Your local authority has a duty of care to carry out an assessment under Section 47 of the National Health Service and Community Care Act 1990. Once your needs have been assessed, you will be advised of the type of care that is appropriate.
Councils across England have raised concerns about the government’s plan to “cap the amount of money people in England spend on their social care” (BBC News).
The planned reforms that are set to affect how our social care system for adults works, aim to cap how much certain people pay towards their care (whether in their own home, a Care Home or a Nursing Home). The cap is intended to be £72,000 at which point individuals would be able to apply for assistance from their local council to help fund their care.
The reforms have already been controversial, as there has been concerns raised as to what is actually included towards that overall cap. However, nine out of every 10 councils that were asked (152 England-based councils, in total) are worried that a lack of funding will throw the scheme into chaos, with questions raised as to who will cover the costs.