This is often a popular question amongst our clients. Health, finances and families continually evolve and no one knows what the future may hold. Here are our responses to our frequently asked questions on this topic:
What is the average cost of care in England?
Age UK reported that the average cost of a residential care home is from around £800 per week. The cost of a nursing home is from around £1,100 per week. Some people are entitled to funded care and others are not.
Do I have to pay for my care fees?
Whether you have to pay for your care depends on how much money you have. The current threshold in England is £23,250 and if you have more than this sum, you will usually need to fund your care fees yourself. The local authority will carry out a means test and this is where they will determine whether you qualify for financial support. In England, there are upper and lower limits for financial assistance :
Your capital |
What you will have to pay |
| Over £23,250 | You will have to pay for your own fees |
| Between £14,250 and £23,250 | The council will provide financial support and you will pay a contribution from your income plus a tariff income. |
| Under £14,250 | The council provides financial support and you will pay a contribution from your income without a tariff income. |
A tariff income assumes you have an extra £1 per week in income for every £250 (or part of) you have in capital between £14,250 ad £23,240. For example, if you have £15,000, you would pay £3 a week in tariff income.
Will my council cover my care home fees?
If you are eligible for financial support, your council may pay towards or cover all of your fees. Your council will need to arrange a care needs assessment to determine if you need to receive care at a care home. They will also arrange a financial assessment which considers your income and capital to work out whether you need help with the cost.
Do I need to pay for care fees if I’m unwell?
If you have health based needs, you may qualify for Funded Nursing Care (“FNC”). This is a programme which provides funding to care homes to cover the costs of nursing care by a registered nurse. If eligible, the NHS will pay a flat rate directly to your nursing home. FNC is not means tested so does not depend on your finances.
Some people with health based needs may qualify for NHS Continuing Health Care (“CHC”). This is a package of care for people who are not staying in hospital and have been assessed as having a primary health need. Eligibility is based on an individual’s health needs and not on a specific diagnosis. The test for CHC can be quite detailed so it is worth discussing your eligibility with your doctor if you think you may qualify for this.
If I have to pay for my care fees, will I have any money left to live on?
If you are eligible for funded support, your council will calculate the overall cost of your care needs and consider your financial assessment to work out how much you need to pay towards your care. The council must make sure that the overall cost you are entitled to is enough to pay for a suitable care home. The council must also ensure you are left a personal Expenses Allowance of at least £30.15 per week. The council does have discretion to increase this sum depending on your circumstances.
Can I choose which care home to live in?
If you a self-funder (you are paying for your own care), you can choose which care home to live in.
If your council are paying some or all of your costs, you will still have the right to choose your care home but this is subject to conditions. This rule also applies to those who start funding residential care to begin with but need assistance with fees later.
If you would like to live in a particular care home, the council must try to arrange accommodation in that care home providing the following criteria has been met:
- the chosen home is suitable to meet your assessed needs
- there is a place available and the care home provider is willing to enter into a contract on the council’s terms and conditions
- if the care home costs more than the overall amount the council calculates is necessary to meet your needs, there is someone willing and able to pay the difference through a top up.
What if I prefer a more expensive care home, will I get a choice?
If you would prefer to live in a care home that costs more than the amount necessary to meet your particular needs, this can be arranged providing you or a loved one are willing and able to pay the difference in cost. This is known as a ‘top-up fee’. However, the council cannot request a top-up fee if you are in a more expensive care home out of necessity. If this is the case, the council would need to show there is at least one alterative suitable care home which meets your needs without a top-up fee.
Will my home automatically be considered for the means test?
The value of the family home can be taken into account in the means test. However, it should be excluded if your husband, wife or civil partner continue to live there. Your home should also be excluded if there are children under the age of 16 that live there.
What about my pension?
A means test will take account of a state pension, but where a workplace or private pension benefits the person’s husband/wife or civil partner, only 50% of its value will be considered.
What if I have to sell my home to fund care fees?
Every individual and family is different, and there are all sorts of options – and costs – regarding the type of care available.
Some may have significant savings or investments that can fund their care, meaning their home is untouched. There are all sorts of scenarios that could have a bearing on whether you might need to sell up, and your solicitor or financial advisor can discuss the options available to you and your circumstances as part of the planning process.
Can I just give my assets away to my children?
This is a dangerous tactic and can have adverse consequences for multiple reasons.
There are circumstances where you can make gifts or big purchases. However, there are strict rules which prevent people from reducing the value of assets to avoid having to pay care home fees.
Any activity leading up to a means assessment (even if years previously, if the prospect of care was on the horizon) can be scrutinised. It may be deemed as ‘a deliberate deprivation of assets’. For example, transferring ownership of your house to your children or giving them each a lump sum, ostensibly as ‘early inheritance’, could be caught by the rules.
If the local authority determines that someone has intentionally given assets away to avoid paying care costs, they can the following actions:
- Treat the person as still having the asset (this is usually the case for small deprivations and the asset’s full value will be included in the means test).
- Recover charges from the recipient (If the asset was transferred to someone else within six months of the person needing care, the local authority can try to recover the care costs from them. However, they can’t recover more than the recipient benefited from the transfer.
- Start County Court Proceedings – If the person doesn’t pay the assessed charges or has misrepresented their financial situation, the local authority can start legal proceedings to recover the debts.
- Decline care fee assistance – the local authority may refuse to help the person pay their care fees.
I don’t know where to start my future planning, what should I do?
Planning does not have to mean getting everything nailed right now. Sometimes, it’s about simply getting your head around the things you should consider sorting out in the next few weeks, months and years.
At Howell Jones Solicitors, we are firm believers in a step-by-step approach. If you require estate planning advice, please contact our friendly Wills and Probate Team today.
