Financial Information

The question of finances is often the most confusing area when making a decision to move into a carehome.

Here we have provided a brief outline of the key financial information that you might need to know when when moving into a care home.

Will I have to pay towards my own care

The simple answer to this is yes- that everyone has to pay something towards their own care.  The amount that you might have to pay depends on your income and on your capital.

Income is classed as regular payments that you receive and includes:

• Any private or occupational pensions
• the retirement pension
• Pension credit
• Income support
• any annuities or trust funds

Capital is classed as your savings and property and includes:

• Bank or building society accounts
• National Savings Certificates
• Bonds
• PEPs
• TESSAs
• ISAs
• Shares

How is my contribution calculated?

When working out your contribution both income and capital assets will be taken into account.

Income- in general, any income that you make counts towards your cost of care, you will however, be allowed to keep up to £22.30 per week for your own personal needs.

Capital- if your capital is less than £14,250, then only your income is taken into account when assessing how much you should contribute towards your care costs.

For every £250 (or part thereof) that you have in capital between £14,250 and £23,250, you are classed as having an extra £1 in income per week. Hence, if you have savings of £23,250, you would be assessed as having an extra £36 per week in income.

If you have more than £23,250 in capital, then you must pay the full cost of your care until such time as the value of your capital falls below that figure.

In addition to this however, if you require nursing care, then you are entitled to the registered nursing care payment which is currently £108.70 per week and which will be paid directly to your nursing home of choice.

Is the value of my property taken into consideration when assessing how much I have to pay?

The value of your house or any other property or land that you own will be taken into consideration when calculating how much you have to contribute to the cost of your own care.

However, for the first twelve weeks after you have moved into the nursing or residential home of your choice, the value of your home (or any money it has generated if it has been sold within twelve weeks) will not be counted.  This is known as the twelve week disregard.

It is only in the following circumstances that the value of your property would not be taken into consideration when assessing your contribution to your care:

• Your partner (providing you are not divorced or separated) remains in the property
• A relative aged 60 or over remains in the property
• A relative aged 16 or under (who is your responsibility) remains in the property
• A relative who is incapacitated in some way remains in the property

Obviously all of the points mentioned above are guidelines and everyones circumstances are different.  For more information, we have provided a link to the Department of Health’s guideline booklet NHS Funded Nursing Care- What it means for you.

*Information valid as of November 2010