FUNDING for care depends on whether you live in a care home or a residential nursing home. If the former, you may be entitled to help with costs, but only if you have little income or savings. If the latter, the NHS will pay £101 a week, called Registered Nursing Care Contribution, towards the nursing fees. Although this is nowhere near enough to fund the total costs, you should ensure you get all the help you are entitled to. Here we take you through the essentials.

Means test

Before you move into a care home, you will have a financial assessment with your local council. The council will look at your income and capital and decide how much you may have to pay towards your care home fees.

Examples of income include interest on your savings; private and/or state pension; and some benefits, such as Pension Credit, Attendance Allowance, or the care component of Disability Living Allowance. Your capital might include savings, investments and any property you might own.

The beginner's guide to self-invested personal pensions (Sipps)

Background

• How to choose a pension

• Annuities explained

• How to make a will

• How to pay for long-term care

Before your financial assessment, make sure you are getting all the benefits to which you are entitled. This is important because your contribution to your care home fees will be worked out as if you are receiving all relevant benefits.

Choosing a care home

Once your income and capital have been assessed, the council can then arrange a care home for you, or you can choose one that charges a similar price. This is important if you are paying your own fees to start with, but think you might need to ask your council for help later on.

How much will I have to pay?

If you have over £21,500 in capital you will be assessed as being able to meet the full cost of your care. If you have between £13,000 and £21,500 of capital you will be provided with an income of £1 for every £250 of your savings. If you have £13,000 of capital or less, the council will usually pay for your care in full.

If you own your home then it will usually be counted as capital 12 weeks after you move permanently into a care home. The value of your home will not be counted as capital if certain close relatives still live there.

You can choose a care home that is more expensive than your local council usually pays for a person with your assessed needs, but you may need to find a way to pay the difference – usually a relative or friend to pay the extra "top-up fee". You cannot pay this yourself as you have been financially assessed to pay what you can afford.

If your local council cannot suggest a place that meets your needs in your local area then it should be prepared to pay more than its usual amount.

Funding nursing home fees

If you live in a care home that provides nursing care, the NHS would normally contribute £101 a week towards the fees to cover the cost of the nursing element. Some people will have the full cost of their care paid for by the NHS; this is called "continuing health care". People who qualify for this type of care usually need ongoing specialist medical treatment on a regular basis.

Hospital staff, or your local doctor (GP), can help arrange an assessment if you think you qualify. If you disagree with the decision made after your assessment you can appeal. If you are assessed as needing some regular nursing care you may receive a contribution towards your care home fees from the NHS.

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