Fees

At some point in our lives there may be a need for additional care and support, either in our own home or in accommodation provided by a registered care provider.

The care provider should be registered with the Care Quality Commission and monitored by the Local Authority via a series of quality assurance checks and monitoring visits.

Depending on the amount of savings you have (income and capital), you may be eligible for funding support where your local council can pay some or most of your fees.

In order to decide whether you are eligible for funding, your local council will carry out a care needs assessment. This assessment will ascertain what type of care and support you require to remain safe and well. Alongside the care needs assessment, they will also carry out a financial assessment to decide whether you qualify for help with costs. This will look at your income and capital.

How much will I have to pay for care?

If you are eligible for funding support, your local council must calculate the overall cost of your care and, using the means test, how much you have to contribute to the overall cost from your financial resources. The council must ensure that the overall cost figure it calculates, called the ‘personal budget’, is high enough to meet the cost of at least one suitable care home.

You will be expected to pay towards the cost from your income included in the financial assessment, for example pensions, however you must be left a Personal Expenses Allowance (PEA). The PEA must be at least £25.65 per week. The council has discretion to increase this amount, depending on your circumstances. See below for more information about the means test.

Your capital	What you will have to pay
Over £23,250	You must pay full fees (known as being self-funding).
Between £14,250 and £23,250	You contribute from income included in the means test, such as pensions, plus an assumed, or ‘tariff’ income based on your capital between £14,250 and £23,250. The council pay the remaining cost of your care.
Less than £14,250	You no longer pay a ‘tariff’ income based on your capital, but you must continue paying from income included in the means test. The council pay the remaining cost of your care. As of March 2023

Will the local council pay for my homecare?

If your local council carries out a care needs assessment and agrees that you’re eligible for care and support at home, they will do a means test. This will take into account your income and savings. Unless you’re going into a care home, this won’t take into account the value of your property.

Here’s how the means test for social care will look at your income and savings, and how this will affect what you pay for care.

Your capital	What you will have to pay
Over £23,250	You have to pay your own fees as a ‘self-funder’.
Between £14,250 and £23,250	You qualify for financial support from the council and pay a contribution from your income – such as pensions – plus a ‘tariff income’ based on your capital. This ‘tariff income’ is worked out by assuming you have an extra £1 per week in income for every £250 (or part of) you have between £14,250 and £23,250 in capital.
Less than £14,250	The council provides financial support and you will still contribute from your income, but you won’t have to pay a tariff income. As of March 2023

Certain types of income, such as money from some disability benefits and pensions, may not be counted in the means test. This also applies to certain types of capital. All other income and capital can be taken into account.

If all your eligible income is taken into account in your means test, you must be left with an income of £189.00 per week, if you’re single and above Pension Credit qualifying age. This is known as the Minimum Income Guarantee.

If you’re eligible for financial support to pay for homecare, your local council can arrange homecare services for you. Alternatively, you can choose to receive direct payments and arrange homecare yourself.

NHS Funding

If your needs are primarily health-based, the NHS arrange and pay for your care under NHS continuing healthcare (NHS CHC). If you are eligible for NHS CHC, your care home placement will be free. When assessing your needs, the council must refer you to the NHS if it appears you may be eligible for NHS CHC.

If you do not meet the criteria for NHS CHC, but require nursing care, the NHS pays a contribution towards the cost of the nursing care directly to the nursing home. This is called NHS-funded nursing care (NHS FNC). There is a factsheet located on this link to explain more.