Arranging live-in care often brings lots of questions, with many families wondering who is expected to pay for it. There are several ways to fund live-in care, many of which don’t require families to cover the full cost privately. However, the social care system can feel complicated, especially when considering government grants and local authority funding.
Today, we’ll explore the options for funding live-in care, so you can make an informed decision about your family’s next steps.
What are your options for funding live-in care?
Many families in the UK are eligible to receive support with paying for care.
Some support options include:
Disability Living Allowance
Individuals younger than 65 years can be assessed for the Disability Living Allowance when seeking care. If your loved one is deemed eligible, they may be granted between £22 and £140 a week. This money can be put towards live-in care costs.
Attendance Allowance
If your loved one is over the age of 65, they will be assessed for the Attendance Allowance instead. Eligible candidates can be granted between £55 and £82 per week, depending on the severity of care required and whether it’s needed only during the day or round the clock.
NHS Continuing Healthcare
If your loved one has long-term, complex care needs, the NHS may be able to help with the cost of live-in care. This is a non-means-tested funding option where your family would be assessed by the NHS to determine whether you meet the criteria.
Carer’s Allowance
Family carers may be eligible for funding to subsidise their income. If you care for someone for more than 35 hours a week, you could be paid £67 per week. This can be put towards funding live-in respite care to give you a break.
Personal Independence Payment (PIP)
PIP is a type of benefit granted by the government for individuals with long-term conditions or disabilities. PIP pays between £30.30 and £194.60 per week, depending on how the condition affects them.
Will the council fund live-in care?
In many cases, your local authority can either fully or partially fund live-in care expenses. They will carry out a needs assessment and a financial assessment before determining whether your loved one’s income and savings fall below a certain threshold.
In the UK, this threshold is £23,250.
If your family meets the criteria, the council will provide you with a support plan that explains your needs and how they will be met, along with a budget they have allocated for you.
You can decide whether you want to receive the budget as a monthly payment or have the council pay the home care organisation directly. Receiving the payment yourself can give you greater flexibility and choice when arranging your care.
It’s worth noting that if you’re receiving care at home, such as through a live-in care agency, the value of your property is not included in your financial assessment.
What are the current funding thresholds for care in England?
When applying for grants and subsidies to fund live-in care, you’ll need to declare your loved one’s savings and current income.
Savings over £23,250
In England, the threshold for local authority care funding is £23,250 in assets. This means that individuals with savings or assets above this amount generally need to fund their care themselves.
Savings between £14,250 and £23,250
Councils may contribute to care costs, but your loved one will also be expected to pay some of the costs themselves. The contribution from the council is determined using tariff income, where the council assumes you receive £1 a week for every £250 above £14,250.
Savings under £14,250
Your loved one’s savings aren’t counted in the assessment if they’re below this figure, but income (such as pensions) will be. The council will pay for the majority of the individual’s care, although they may still need to contribute some of their income.
How does NHS Continuing Healthcare work?
NHS Continuing Healthcare (CHC) is a fully-funded grant for individuals whose primary needs are health-related rather than social.
Your loved one may qualify if they have:
- Complex or unpredictable health needs
- A long-term condition requiring ongoing support
- Significant nursing needs
- A rapidly deteriorating condition
The NHS uses two steps to determine whether individuals are eligible for this type of funding: a checklist screening assessment and a full assessment carried out by a multi-disciplinary team.
To apply for CHC, speak to your loved one’s GP or local Integrated Care Board (ICB). If your loved one is successful, they may also be offered a Personal Health Budget, a tax-free sum of money to fund a care option of your choice.
Private funding options for live-in care
Not everyone is eligible to receive government funding, meaning they have to self-fund their live-in care.
Equity release is one of the most common ways to fund care at home, including:
- Lifetime mortgage: Your loved one borrows against the value of their home while keeping full ownership. The loan is repaid when the house is sold, and interest can be paid monthly or as a lump sum.
- Home reversion plan: Your loved one sells a portion of their home in exchange for a lump sum or income, while retaining the right to live in the home for the rest of their life.
Equity release is a beneficial way of receiving funding for private home care, but it’s not suitable for everyone. It can reduce the value of your loved one’s estate and may affect entitlement to means-tested benefits.
Other private funding options include care fee annuities, deferred payment schemes, and personal savings and investment pots.
How Patricia White’s can help
At Patricia White’s, we understand that the uncertainty around paying for care can raise many questions and concerns for families. We are committed to supporting you every step of the way, and our team of advisors can assist you in securing the right funding option.
Our experienced carers provide bespoke, personalised support that adapts to changing needs over time. Whether someone requires companionship, practical assistance or more comprehensive care, our focus is always on helping clients maintain their independence, dignity and quality of life.
Talk to our dedicated team of experts today
The standards set by Patricia White 35 years ago still remain today. Call our experienced team today on 01293 224708 to discuss your live-in care needs and receive a free, no-obligation quotation.
Or feel free to send us a message using our online enquiry form and a member of our expert care team will get back to you as soon as possible, typically within 24 hours.
