Paying for your care

Self-funder (savings and assets above £23,250)

If you pay the full cost of your care, you are called a self-funder.

This can be care in:

  • your own home
  • a care home

You pay for this care yourself.

The £23,250 savings limit

The Government sets a limit of £23,250.

If you have more than £23,250 in savings and assets (this is called capital), the council will not pay for your care.

When you are classed as a self-funder

You are a self-funder if one or more of these apply:

  • you have more than £23,250 in savings or investments
  • you can afford to pay care home fees from your income without help from the council
  • you own a property, on your own or with someone else, and your share is worth more than £23,250

When your home is ignored

If the only property you own is your home and:

  • you own it with your husband, wife or partner, and
  • they still live there

then the value of the home is not counted in your financial assessment.

What counts as capital

Capital means the money and things you own. This includes:

  • money in bank accounts or savings
  • investments
  • the value of a former home
  • the value of a second property
  • stocks, shares and premium bonds

If the total value is over £23,250, you are a self-funder.

Help with care costs through benefits

Even if the council does not pay towards your care, you may still be able to get other benefits.

Claiming this benefit may secure your capital by increasing your weekly income, which will then reduce the amount of capital you need to make up the full cost of care.

If you have previously claimed this benefit but it is on hold, you should make a request for it to be started again.

Attendance Allowance

You may get Attendance Allowance if all of the below apply. You:

  • are over State Pension age
  • have a long-term illness or disability
  • need help to care for yourself or to stay safe

You can still claim if no one is helping you right now.

Attendance Allowance is tax free and not affected by your income or savings.

Personal Independence Payment (PIP)

You may get PIP if all apply:

  • you are under State Pension age
  • you have a long-term illness or disability
  • you need help with daily living or getting around

PIP:

  • is tax free
  • is not affected by your income or savings
  • replaced Disability Living Allowance (DLA)

Using your home to pay care home fees

If you pay the full cost of a care home but most of your capital is tied up in a property that was your main and only home, you may be able to apply for a Deferred Payment Agreement (DPA).

A DPA:

  • is a loan from the council
  • lets you delay selling your home
  • is repaid when the home is sold or from your estate

You should always get independent financial advice before making decisions about paying for long-term care.

If your savings drop to £23,250

When your savings fall to £23,250 or less, you may be able to get help from the council.

We will do a financial assessment to work out how much:

  • help you can get
  • you can afford to pay each week

If you live in the borough contact us about 3 months before your savings drop below £23,250:

If you do not live in the borough, contact the local council where you live now.

Getting independent financial advice

Before you decide how to pay for long-term care, it is important to get:

  • clear information
  • advice that is fair and independent

Some advice is free.  Specialist advisers may charge a fee but can give detailed advice based on your situation.

Benefits