What live in care funding options are available?
Whilst live-in care is an excellent option for enabling an individual to remain living in their own home, as with any full-time care it can be costly, which may necessitate the person and their loved ones to investigate what options are available to pay for it. Depending on individual circumstances there may be funding available that will ease the burden on the individual to pay for their own care, or it may be that loved ones are planning to foot the bill on their family member’s behalf. There may also be local authority funding available in some cases. There are major benefits to remaining in your own home for live in care, including:
- Remaining in control of your own routines at all times
- 1-2-1 personalised care on your terms
- Not having to sell your home to pay for your care
Can the local authorities fund my live in care?
There may be funding available from your local authority although the rules for what can be accessed are sometimes complicated. The government has also recently changed the thresholds for what you may have to pay depending on your circumstances, and therefore it is essential to contact your local authority and request a financial assessment at your earliest opportunity.
Types of live in care funding
At present, according to the NHS, “you will not be entitled to help with the cost of care from your local council if you have savings worth more than £23,250 – this is called the upper capital limit, or UCL”. However, this is due to rise to £100,000 from October 2023. The government are also introducing an £86,000 cap from October 2023, meaning that no individual should pay more than that amount for personal care, although they will still be eligible for daily living costs (DCLs). More information can be found here.
Direct payment from local authority funding
If you are eligible to receive a personal budget, your local council will arrange to either manage the budget for you, pay the money directly to another organisation such as Helping Hands, or pay the money directly to you or someone you choose. This is also known as direct payment. Your local authority will explain the system of direct payment to you and undertake financial assessments to decide how much funding you may be entitled to. It’s therefore important to speak to them as early as possible in your care journey. You remain in control of your care with direct payment as you decide your care provider and can liaise directly with them to arrange live-in care. Helping Hands accept direct payments and top-up payments where appropriate, and we can support you to make every aspect of your care run smoothly.
Home reversion plans
According to moneyhelper.org.uk, a home reversion plan “is a type of equity-release scheme that lets you use some of the money that’s tied up in your home. You might use this to pay for your long-term care, but only if you’re looking to stay in your home.” While this may seem the answer if you are looking to afford live-in care in your own home, there are pros and cons to the scheme and it should be discussed with an appropriately experienced solicitor or financial advisor.
A home reversion plan means you sell all or part of your home in return for a regular income, cash lump sum, or mixture of both, while remaining in your home. How much you get depends on a number of factors, such as your age, health status, and how much of your home you have sold to the equity release company. To ensure this plan is the right one for you it is essential you talk it over with a financial advisor before embarking on it.
Equity releases
While equity release schemes aren’t used exclusively for funding live in care, they can be useful in generating enough income to do so. As well as home reversion plans, another form of equity release is known as a lifetime mortgage. According to moneyhelper.org.uk this is where “you take out a loan secured on your home which doesn’t need to be repaid until the end of the mortgage term (when the borrower sells the property, dies or moves permanently into a care home).”
Lifetime mortgages principally come in two different types:
- An interest roll-up mortgage, where the amount you borrowed, including the rolled-up interest, is repaid at the end of your mortgage term when your home is sold. This means there are no regular repayments to be made.
- An interest-paying mortgage. You make either monthly or ad-hoc payments which reduces, or stops, the impact of interest roll-up. The amount you borrowed is repaid when your home is sold at the end of your mortgage term.
Continuing healthcare funding
NHS continuing healthcare funding (CHC) is granted to those who have ongoing health conditions or care needs that require complex support or palliative care. The NHS fully funds the package of care in your own home on either a permanent basis, or for an unspecified, shorter period. You will be assessed to discover if you qualify for CHC via your local clinical commissioning group (CCG) directly or getting in touch with your GP. You will then either be referred for a full assessment or informed that you’re not eligible.