Exact Amount In Savings You Need To Get Free Care And How To Fund It Yourself

AS you get older, it is common to start worrying about how you will pay for care.

Depending on your health, you may require the help of a carer or you may move into a residential care home.

GettyWe share what options are available for those who require support later in life[/caption]

But this can come at a price, with the NHS estimating the cost of living in a nursing home to set you back £800 a week.

That works out at £41,600 a year.

If you move into a residential home, which are typically for individuals who require less intense medical care, you could have to pay £600 a week or £31,200 a year.

Many elderly people are able to live independently or rely on the help of family or friends.

You can also hire a carer to help with some tasks or care in your own home.

Here we explain how much you need in savings to qualify for support and how to fund the cost of care.

Get your care home costs covered

If you are on a low income you could be entitled to support from the council to lessen the financial load.

Caroline Abrahams, charity director at Age UK said the first step in getting help is to “ask the local authority for a needs assessment”.

“The local authority only has a duty to help with care fees where they have done a needs assessment and agree the person has care needs meeting nationally set eligibility criteria,” she explained.

It is free to get a needs assessment and you need to apply for one through your local council.

You can find out more by visiting, www.gov.uk/apply-needs-assessment-social-services.

If it is decided in the assessment that you need to enter into a care home then the council will carry out a free financial assessment.

This establishes what you will have to pay towards the cost of your care, if anything.

How much support can you receive?

The amount you can get depends on certain factors.

At present, anyone living in England or Northern Ireland with £23,250 in capital (savings and income, including benefits) will have to pay care home fees without any assistance.

If you live in Wales or Scotland the limit is different. 

For example, if you live in Scotland and have capital worth £35,000 you have to fund your care home fees. 

While in Wales, anyone with capital under £50,000 will receive fully funded care from the local authority.

If you have under £23,250, then you will be entitled to help with fees, but must usually pay a contribution from their income towards the cost of their care.

According to Independent Age, if you have under £14,250 in capital you do not have to pay your care home fees.

However, you will have to contribute most of your weekly income to help cover your costs.

For example, if you claimed Pension Credit you would have to use the benefit money to help cover the cost of your care.

In these circumstances, you are given a small personal allowance of £30.65 a week.

Those who earn between £14,250 -£23,250 also have to contribute most of your weekly income towards your care home fees.

The charity said you’ll be treated as if you have an “extra £1 of income for every £250 of capital you have between these two amounts”.

Nicola Upton, director of services at the charity for older people in financial hardship, said: “The charges you’re asked to pay should not put you in financial difficulty. If you’re struggling to pay, talk to your Local Authority.

“Their charge must be based on your individual circumstances, and they may not have considered all your costs and outgoings.”

She added: “If you’re not happy with the outcome of the financial assessment, you can also ask the Local Authority to review it.”

It is also worth noting that if you need to live in a care home, you have the right to choose where you live.

The council must give you at least one affordable choice. Some councils have a list of homes they recommend, according to the NHS.

If your desired care home costs more than what your local council is willing to pay then you can have someone else pay the difference. 

This is known as a third party top up fee. This are be paid by someone else who is not living in the care home or the council , such as a friend or family member. 

But if circumstances change and the third party stops paying the fees, you would have to move home. 

You should not have to pay the top-up fee if you moved to the more expensive care home out of need rather than preference. 

Those who are being assessed by the council – with a living partner – should also know that it cannot include any capital or income belonging to your husband or wife during your assessment. 

But if you jointly receive income then this will be taken into consideration during your assessment, with the assumption that you split the money 50/50. 

The value of your home is also disregarded in your assessment as long as your partner remains living there. 

The Labour government scrapped long awaited plans to cap the costs of care home spending to £86,000 late last year. 

The plan was first floated by Boris Johnson back in 2019, as a solution to the care costs crisis, but the plan was scrapped in its entirety by Chancellor Rachel Reeves last summer. 

When you live in a care home a lot of your money, such as your state pension goes towards your care home fees. 

But the government must ensure you have set aside each week to pay for personal items. 

The rates vary across the UK, with those in England receiving £30.65 each week. 

Meanwhile, those in other parts of the UK receive the following: 

• Scotland: £35.90
• Wales: £44.65
• Northern Ireland: £27.19

You could also be entitled to free home adaptations and equipment such as handrails, grab rails for the bathroom, and ramps for wheelchair access, if they cost less than £1,000. 

More support available

You could be entitled to free home adaptations and equipment if they cost less than £1,000.

The council is required to give this out if you have been assessed as needing it.

This includes:

• handrails for the stairs
• grab rails for the bathroom
• an intercom system for answering your front door
• ramps for wheelchair access
• a walking frame
• perching stools in your kitchen or shower
• heating system improvements (if it directly affects your medical condition)

You can apply for the support by asking the council to carry out a home assessment.

The best way to fund care

The council can also pay for a carer to come and look after you in your home, with the same capital limits applying.

If you are paying for your care yourself and your capital reaches £23,250 then you should get in touch with the council for help. 

It may be helpful to do this a few months before your money runs low, to avoid being left without care. 

If the council pays for your home care they must give you a personal budget. This is the amount they think your care should cost. 

You can choose to receive this payment directly into your account so you can hire someone you know or you can choose someone from a homecare agency. 

If you hire someone yourself and avoid going through an agency you take on the responsibility of an employer. 

This means if you pay them more than £192 a week you may be legally obliged to pay into a pension for them. 

When you go through an agency these rules do not apply, but it means you have less control over who may be taking care of you. 

If you paying for your care home fees yourself, you’ll continue to receive your private pension. 

But it is worth noting that your private pension will be included within your savings and assets during a financial assessment by the council. 

If you move to a care home and your partner stays at home you can give them half your private pension and this won’t be included in your assessment. 

And there are a few things you can do to avoid your asset being used to fund your care. 

You can start planning for your future with care annuity plans.

These are insurance products that will pay a fixed income to your provider to help cover care costs for life. 

You pay a lump sum upfront, and the annuity covers fees.

But these plans come with a risk as you may have to pay a large fee up front and then only require care for a short amount of time. 

Another option is an equity release. This allows you to take cash from your home without having to move. 

You generally need to be over 55 to get access to these types of plans.

It can be a help as they can give you a tax free lump or small payments that can go towards your care costs. 

An equity release is a big decision and you should also be aware that these products can accumulate interest and also reduce the value of your estate. 

Once you die the initial amount you borrowed from your provider, plus any accrued interest will need to be repaid, usually from the sale of your home.