Understanding Care Home Fees: Benefits, Funding, and Why Professional Advice Matters

As life expectancy increases, more families in the UK are faced with the challenge of funding long-term care. Care home fees can be substantial, often exceeding £70,000 per year for the most basic of homes and navigating the complex web of benefits and funding options can feel overwhelming. Our specialist Attorney Affairs Team regularly advise clients on care fees and ensuring they access all available support.

The Cost of Care and Who Pays

Care home fees vary depending on location, level of care, and whether nursing care is required. Broadly, there are two categories of costs:

• Accommodation and personal care (help with washing, dressing, meals)
• Nursing care (medical support provided by qualified nurses)

Funding for these costs can come from a mix of personal resources, local authority support, and NHS contributions. The key question is: who pays, and how much?

Local Authority Funding

Local authorities provide means-tested support for care home fees. If your capital (including savings and property) is below certain thresholds, you may qualify for assistance:

• Upper threshold: £23,250 – if your assets exceed this, you are generally self-funding.
• Lower threshold: £14,250 – below this, you contribute from income only.

Between these figures, a sliding scale applies. Importantly, your home may be included in the assessment unless a spouse or dependent still lives there. There are exceptions, and professional advice can help you understand whether property disregard rules apply. It’s also important to note that as the Local Authority agree a lower rate with care homes than where people are fully funding themselves, which room is available to you, or indeed which home you can live in, will be affected if you require assistance with your care fees.

NHS Continuing Healthcare (CHC)

CHC is a fully funded package of care provided by the NHS for individuals with significant health needs. If eligible, the NHS covers all care costs, including accommodation. However, the assessment process is rigorous and often misunderstood. Many families assume CHC is only for end-of-life care, which is incorrect. Eligibility depends on the nature, complexity, and unpredictability of your health needs—not your diagnosis alone.

Appealing a CHC decision can be complex, and solicitors experienced in healthcare law can guide you through the process, ensuring your case is presented effectively.

NHS-Funded Nursing Care

If you do not qualify for CHC but require nursing care, the NHS may contribute a fixed weekly amount (currently £235.88 in England) towards nursing costs in a care home. This is paid directly to the home, reducing your overall bill.

Attendance Allowance

Attendance Allowance is a non-means-tested benefit for individuals over State Pension age who need help with personal care. It is paid at two rates (£72.65 or £108.55 per week) depending on the level of need. Even if you are self-funding, this benefit can help offset costs. Many people overlook this entitlement, assuming it does not apply once they enter a care home but it can be claimed all the time that you are self-funding.

Other Support

• Personal Expenses Allowance: If the local authority funds your care, you are entitled to keep a small weekly amount for personal spending.
• Property Deferred Payment Scheme: Allows you to defer selling your home by taking a loan from the local authority, secured against the property.
• Council Tax Exemptions: Empty properties due to care home admission may qualify for exemptions.

Why Professional Advice Is Crucial

The rules governing care funding are intricate and subject to frequent changes. Misunderstanding them can lead to missed entitlements or unnecessary depletion of assets. Common pitfalls include:

• Incorrect property inclusion: Families often assume the home must be sold immediately, which is not always the case.
• Failure to claim benefits: Attendance Allowance and NHS contributions are frequently overlooked.
• Missed CHC eligibility: Many people wrongly accept initial refusals without challenge.

Planning Ahead

Early planning is key. Consider:

• Lasting Powers of Attorney: Ensures decisions can be made if capacity is lost.
• Wills and estate planning: Protects your wishes and minimises tax implications.
• Financial assessments: Helps structure assets to maximise eligibility for support.

Care home funding is a complex area where legal, financial, and health considerations intersect. While online resources provide general guidance, they cannot replace tailored advice. Consulting a solicitor ensures you access every benefit and funding stream available, avoid costly mistakes, and plan confidently for the future.

If you or a loved one are facing care home decisions, seek professional advice early. It’s not just about paying for care—it’s about protecting your rights, your assets, and your peace of mind.

Contact us today for a confidential consultation. Call 0800 84 94 101, email trowden@mayowynnebaxter.co.uk and adodsworth@mayowynnebaxter.co.uk, or visit www.mayowynnebaxter.co.uk to speak with one of our specialists.