Self Funding Care – Care Home Costs 2014
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|
|Residential care||£28,500 per annum*||£114,000|
|Nursing care||£37,500 per annum*||£150,000|
*Source: Laing & Buisson
But what if all of your money is tied up in your house, or in shares? What if it’s in a savings account that you want to leave to your children? Will you have to sell your home, or spend your children’s inheritance?
Care Act 2014
From April 2016, a cap of £72,000 will be placed on the amount of ‘personal care’ costs an individual will pay in a nursing or residential care home. However, this does not include accommodation costs which will be capped at £12,000 per annum. Ministers believe that the cap will help more people and is an attempt to deal with some of the costs associated with an ageing population.