Paying for Home Care

When it comes to arranging for home care, the amount you have to pay will depend on the degree of care you require to suit your individual needs.

This means that the price depends on what tasks / activities are included as part of your home care service. It will also be dependant on the time duration of the care service, i.e. how many hours of care will be provided daily, weekly, and for how many months.

The amount you have to pay will also depend on the value of your assets.  As this dictates how much financial help you may be entitled to from your local authority.

 

When paying for your home care, there are two options:

1. Self funded (private)
2. Local authority (state) funded

1. Self Funded Home Care

With self funded care, this will mean paying with pensions or savings.  It could also involve arranging for a loan from a bank or building society.

Equity release is another way of funding home care. This allows you to access some of the value held in your property while still living there.

There is also the possibility of paying for your home care through a care annuity.  This is essentially an insurance policy.  It requires an upfront lump sum payment, but it then ensures a guaranteed income for life.

 

2. Local Authority Funded Home Care

To see what government funding you are eligible for from your local authority, you will have to have to have a “needs assessment” first.  This is to demonstrate that there is a requirement for care.  It is also for the local authority to assess the details of what sort of things this care will need to include.

Next, you will have to have a “means test”.  This will be to demonstrate that you are unable to pay for this care yourself.  Through a “means test”, the local authority can figure out how much financial support you will need.

The amount of money the local authority can give you will depend on your income and the value of your assets.  The total of your assets must be worth less than £23,250 for you to be entitled to receive support.  Money from particular disability benefits and pensions might not be included in your “means test”, as with certain types of income and capital.  The total of all of your income that is included in the “means test” must leave you with an income of £189 per week (the Minimum Income Guarantee).

If eligible for local authority funded home care, the local authority can arrange home care for you, otherwise you can arrange home care yourself and then they will pay you directly.

 

Additionally, benefits you may be entitled to include:

• Attendance Allowance (for people over 65 requiring additional help to remain independent due to illness / a disability)
• Personal Independence Payment (for people under 65)
• Carer’s Allowance (if you have a carer)