Self-funder (savings and assets above £23,250)
If you pay the full cost of the services you receive to live independently at home or in a care home, you are known as a self-funder.
The Government set a limit of £23,250 for self-funders. That means if you have over £23,250 in savings and assets (capital) you will not receive any funding for social care.
Criteria for a self-funder
To be classed as a self-funder you will:
- have savings in bank accounts or investments that total more than £23,250
- have income that is sufficient to pay the care home fees, without needing any financial contribution from the council
- own a property either in your own name or jointly with someone else and your share of the property is worth more than £23,250
- if the only property owned is your home and it is jointly owned by your spouse (who will continue to live in the property) then its value will be ignored in the financial assessment. See below for further information about properties.
Capital limits
The capital limit set by the Government is £23,250. This means that if you have money in bank accounts or investments that is greater than this amount, you will be classed as a self-funder. As well as money in bank accounts, the other assets will be included when determining the level of a person’s capital, for instance:
- the value of a former home (but see further information below about properties)
- the value of any second property owned
- any other investments such as stocks, shares, and premium bonds
Help towards care costs from welfare benefits
If you are not eligible to receive financial assistance from the council towards your care fees, you may be entitled to other benefits. Claiming this benefit may secure your capital by increasing your weekly income and thereby reducing 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 reinstated.
- if you are over state pension age and have a long-term illness or disability that is severe enough for you to need help from someone else to help you care for yourself, or to supervise you to keep you safe, you may be entitled to receive extra money called Attendance Allowance
- you can claim attendance allowance even if you do not have anyone helping you care for yourself
- attendance allowance is tax-free and is not affected by your income or savings
- if you are under state pension age and need help from another person to care for yourself due to a long-term illness or disability, or/and you have difficulty walking or getting around, because of a long-term illness or disability, you may be entitled to receive extra money called Personal Independence Payment (PIP) – which replaced the old Disability Living Allowance (DLA)
- you can claim PIP even if you don’t have anyone helping you care for yourself. PIP is tax-free and is not affected by your income or savings
If you need the capital from your home to pay your care home fees
If you are responsible for the full cost of your care home fees, but most of your capital is tied up in a property that was your main and only home you may be eligible to apply for a deferred payment agreement (DPA) with the council.
A DPA is a kind of loan which allows you to delay the need to sell your property during your lifetime. The loan must be repaid in full when the property is sold or from your estate.
A DPA is just one type of care-home funding arrangement, you should always seek independent financial advice before making decisions about how to fund your long-term care.
What to do if your capital reduces to the Upper Capital Limit
You may become eligible for financial support from the council to help towards your care and support costs. How much financial help you get depends on the outcome of your financial assessment to work out the most you could pay per week for your care and support.
If your savings are approaching £23,250, and you live in the borough of Ealing, contact adult care services about three months before you think your savings will drop to below the upper capital limit to request a care needs assessment.
- telephone: 020 8825 8000
- email: sscallcentre@ealing.gov.uk
If you no longer live in the borough of Ealing (for example, you moved to a care home in another area and have been self-funding there), contact the local council for your area which has adult social care responsibilities.
Independent information and advice on paying for long-term care
Before you make decisions about how to fund your long-term care it is important you get clear information and unbiased advice about your financial options. Some independent financial information and advice is available free. Specialist independent financial advisers often charge for their time, but provide detailed knowledge and advice tailored to your situation about your options on paying for long-term care.
