If you’re looking at arranging help at home or residential care, then you may have questions about how to pay for it. We know this is a complex process, so we’ll take you through it step-by-step.
How does paying for care work?
Care at home arranged by your local council isn’t usually free. In order to arrange social care you need to first get a care needs assessment.
After you’ve had the care needs assessment, and you’ve an agreed care and support plan, there will be a financial assessment, also known as a means test. This is where your local council will ask about your finances and income to work out how much you will contribute to your care.
Find your local council
Your local council’s adult social services department will carry out a free assessment of your care needs.
The financial assessment for care explained
If you’re looking into arranging help at home or moving into a care home, then you probably have questions about how you’re going to pay for it. The financial assessment is used to work out how your care will be paid for.
How does paying for care work?
Social care services are usually not provided free of charge. You may need to pay some, or all, of the cost of the care services you need. You may be entitled to help with the cost of care services from your local council, following a financial assessment (sometimes called a ‘means test’).
To get help from your local council, you must first ask them for a care needs assessment. This is because they first need to find out whether you meet the national criteria that decide who’s eligible for care and support – this is known as having ‘eligible needs’. If you do, they’ll then look at whether you’re entitled to help with care costs under the financial assessment.
Find out more about the care needs assessment
The financial assessment works out how much you’ll need to contribute towards the cost of the care services the council assess you as needing.
Find your local council
Your local council’s adult social services department will carry out a free assessment of your care needs.
What does the financial assessment involve?
The financial assessment looks at your income, such as pensions and benefits, and your ‘capital’, such as savings, to work out whether you’re entitled to help with care costs. If you are, the financial assessment also works out how much you may need to contribute towards the cost of the care services the council assess you as needing.
There are different financial assessment rules depending on whether you need care services in your own home, in the community, or in a care home. For example:
- If you need care to stay living at home, or a short-term or temporary stay in a care home, the assessment won’t include the value of the property you live in.
- If you need to move permanently into residential care, the assessment may include the value of your property. However, in certain circumstances your property will be ignored, for example if your partner still lives there.
How will my income be treated in the financial assessment?
Certain types of income, such as money from certain disability benefits, may not be counted in the financial assessment. All other income can be taken into account.
Make sure you get all of your benefits and entitlements. That’s because the assessment will assume you’re receiving all the benefits you’re entitled to, even if you aren’t already claiming them.
If you and someone else jointly hold capital, such as a joint savings account, you’ll usually be treated as having half of the money.
Will I have to sell my home to pay for care?
Many people worry that they will have to sell their home to pay for social care. Find out how your property will be valued and in what situations it may not have to be included in the means test.
What if I give away some of my money?
You may think about giving away some of your savings, income or property to avoid paying likely care costs, and to give something to your relatives or charity, for example.
If the council thinks that you have done this to avoid paying care fees they may still assess you as if you still had the money or property that you have given away. This is referred to as deprivation of assets.
How much will I have to pay?
After the means test the local council should give you a written record of their decision of what you will have to pay and what they will pay, and how they calculated it.
How much you will have to pay will depend on:
- what type of care and support you need.
- your own personal circumstances.
If you’re going into a care home, you should not be left with less than £25.65 a week after any contribution to your fees. This is known as your Personal Expenses Allowance.
If you’re getting some aids or home adaptations, paying for these depends on what type of adaptations or equipment you need. If the council agree you need aids or equipment or a minor home adaptation, it must provide this for free.