The care of an elderly loved one is often a matter of deep concern for families. Whether due to ageing, illness, or a condition such as dementia, many people find themselves in need of additional support, either in their own homes or in a residential care setting. Navigating the social care system in the UK can be challenging, particularly when it comes to understanding how to finance this care. The complexity of social care funding can cause anxiety, especially for those who feel they may not have the resources to afford it. However, it is important to know that financial assistance programmes are in place to help ease this burden.
We’ll explore the different options available for financing social care, including support from local councils, charitable grants, self-funding, and benefits that can help contribute towards the cost of care. We’ll also discuss the importance of assessing the care needs of your loved ones and how that impacts the available financial support. Ultimately, the goal is to ensure that everyone who requires care can access the help they need without financial strain.
Understanding the Social Care System
Social care refers to a broad range of services that support people who may need assistance due to age, disability, or illness. This can include home care services, which provide help with daily activities such as washing, dressing, and preparing meals, as well as more intensive care provided in a residential care home. The first step in accessing social care is typically an assessment by your local authority. This assessment will evaluate the needs of the individual and determine the type of care required, whether it be home care, nursing care, or a place in a care home.
Once the care needs have been established, attention then turns to the question of how to fund it. Many people are surprised to learn that social care in the UK is largely means-tested, unlike the National Health Service (NHS), which provides free healthcare at the point of use. This means that individuals may need to contribute towards the cost of their care, depending on their financial situation.
Financial Support from Your Local Council
One of the primary avenues for financial assistance is through your local council. After the care needs assessment, a financial means test will be conducted to determine how much, if any, financial support the individual is entitled to. This test takes into account a person’s income, savings, and in some cases, their property.
How the Means Test Works
The financial means test is designed to assess how much an individual can afford to contribute to their care. The outcome of this test determines whether the local council will cover the cost of care or if the individual will need to self-fund. The means test considers several factors, including:
- Income: This includes wages, pensions, and certain benefits. However, some benefits, such as Disability Living Allowance (DLA) or Personal Independence Payment (PIP), may be excluded from the calculation.
- Savings: Any savings an individual has will be factored into the assessment. If a person’s savings are below a certain threshold, they may be eligible for council support.
- Property: If an individual is seeking homecare, the value of their property is not included in the means test. However, if they are moving into a residential care home, the value of their home may be included unless a spouse or other dependent continues to live there.
Thresholds for Financial Assistance
The means test divides financial thresholds into three key categories:
- Income and savings below £14,250: If an individual’s assets are below this level, the local council will provide financial assistance, with the person expected to make only a small contribution from their income.
- Income and savings between £14,250 and £23,250: In this case, the individual will still receive some council funding but will be expected to contribute a larger proportion towards their care. In addition to contributing from their income, they may also be required to pay a “tariff income” based on the value of their assets.
- Income and savings over £23,250: Those with assets above this threshold will be required to self-fund their care in full.
It’s important to note that regardless of the outcome of the means test, the council must ensure that the person requiring care is left with at least £189 per week of eligible income, allowing them to maintain a basic standard of living.
Grants and Charitable Assistance
There are other avenues to explore for those who do not qualify for council funding. Charitable organisations and grants can provide vital financial support to help cover the cost of social care. Many national charities offer assistance, particularly for individuals with specific health conditions. For example, the Alzheimer’s Society and Dementia UK provide support for those living with dementia, while organisations such as the British Red Cross may assist individuals with physical disabilities.
In addition to national charities, local community groups often provide grants or financial assistance to individuals within their area. It is worth exploring the options available in your community, as these smaller groups can sometimes provide targeted support that isn’t available through larger organisations.
Another source of funding can come from occupational charities, which assist people who have worked in certain industries. For example, The Healthcare Workers’ Foundation offers support to individuals who have spent their careers working in healthcare, while similar foundations exist for other professions, such as teaching or the armed forces.
Self-Funding Your Care
If neither local authority support nor charitable assistance is available, self-funding may be necessary. While this can seem daunting, self-funding offers some advantages. One of the main benefits is that it gives individuals and families greater control over the type of care they receive and where and how it is provided. For example, if you are self-funding, you can choose the care home or homecare provider that best meets the needs of your loved one, rather than being restricted to options selected by the local council.
Cost of Social Care
The cost of social care varies depending on several factors, including the type of care required, the location of the care home, and the level of support needed. On average, homecare costs around £25 per hour, though this can be higher in certain areas of the country or for more specialist care. Residential care home fees can vary significantly, with costs ranging from £600 to £1,200 per week, depending on the level of care provided and the location.
Funding Options for Self-Funders
For families who need to self-fund, there are a number of options available to help spread the cost of care:
- Equity Release: For homeowners, equity release schemes allow individuals to unlock some of the value of their property to help pay for care.
- Deferred Payment Schemes: Some local councils offer deferred payment schemes, which allow individuals to delay the sale of their home to pay for care. The council covers the cost of care initially, and the individual repays the amount after selling their home or through their estate.
- Personal Savings and Investments: Some families use personal savings or investments to cover the cost of care. It’s important to seek financial advice before using this option to ensure that savings are being used effectively.
Government Benefits and Allowances
Even if you are required to self-fund your care, there are a number of government benefits and allowances that can help ease the financial burden. These benefits are typically not means-tested, meaning they are available to anyone who meets the eligibility criteria, regardless of their income or savings.
- Attendance Allowance: This benefit is available to people over the State Pension age who need help with personal care due to illness or disability. It is designed to help individuals stay independent in their own homes by providing financial support for additional care needs.
- Personal Independence Payment (PIP): For those under the State Pension age, PIP is available to help with the extra costs associated with living with a long-term health condition or disability. It replaces the old Disability Living Allowance (DLA) and is not means-tested.
- Carer’s Allowance: If a person has a carer, they may be eligible for Carer’s Allowance. This is a weekly payment for people who provide regular care for a loved one for at least 35 hours a week. To qualify, the person receiving care must also meet certain eligibility criteria.
Planning for the Future
With the costs of social care rising and increasing numbers of people requiring long-term care, it’s never been more important to plan for the future. Many families are unaware of the true costs of care until they are faced with the reality of having to arrange support for an elderly loved one. Starting the conversation early and exploring the available options for financial support can help alleviate the stress when the time comes to arrange care.
In addition to seeking advice from your local authority, there are many organisations that can provide guidance on social care costs and funding options. Solicitors, financial advisers, and charities specialising in elder care can all help families navigate this complex process.
Conclusion
Arranging care for an elderly loved one is a difficult and emotional task, made more complicated by the need to understand and manage the financial side of things. However, with careful planning and a clear understanding of the available options, families can access the support they need to ensure their loved ones receive high-quality care, whether in their own homes or in a residential care setting.
Local authorities, charities, and government benefits all provide crucial support for those in need of care while self-funding options offer flexibility for those who do not qualify for financial assistance. Whatever the financial situation, it’s important to remember that help is available, and no one should feel alone in navigating the complexities of social care.
At Valorum Care Group, we understand the challenges families face when arranging care for a loved one. Our team is always available to discuss your options and provide detailed information on care costs, ensuring that you can make informed decisions about your loved one’s future. Whether you are seeking advice on financial assistance or looking for a care provider, we are here to help.