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Moving into a care home and self-funding can be a significant financial commitment. However, there are several benefits and entitlements available to ease the financial burden.
This guide explores the key benefits you can claim while self-funding your care in a care home.
Key takeaways:
If you're self-funding your care home, you might still qualify for benefits to help with costs.
Here are some benefits you could claim:
- Attendance Allowance: For the first four weeks of your stay.
- Disability Living Allowance (DLA): Care component for the first four weeks.
- Personal Independence Payment (PIP): Daily living and mobility components.
- Pension Credit: If you're over State Pension age and have a low income.
- Universal Credit
- Employment and Support Allowance
- Severe Disability Payment: Part of Pension Credit.
Note: You can't claim the Disabled Facilities Grant in a care home.
Understanding Self-Funding in Care Homes
Self-funding means that you or your family are paying for the full cost of your care home fees without financial assistance from the local authority.
Even as a self-funder, you may still be eligible for various benefits to help manage the expenses.
Key Benefits for Self-Funders
1. Attendance Allowance
Attendance Allowance is a non-means-tested benefit for people over 65 who need help with personal care due to illness or disability. It can be particularly useful for self-funding individuals in a care home.
- Eligibility: Over 65 and need help with personal care.
- Rates: There are two rates, depending on the level of care required:
- Lower rate: £72.65 per week in the 2024/25 tax year (for those needing frequent help or supervision during the day or night).
- Higher rate: £108.55 per week (for those needing help or supervision throughout both day and night, or if they are terminally ill).
- How to Apply: Applications can be made online through the UK government website or via a paper form.
2. Personal Independence Payment (PIP)
Personal Independence Payment (PIP) is for people aged 16 to 64 who have long-term health conditions or disabilities.
- Eligibility: Under state pension age at the time of the first claim and have difficulty with daily living or mobility.
- Components and Rates: PIP has two components – daily living and mobility. Each component has two rates:
- Daily living: Standard (£72.65 per week) or Enhanced (£108.55 per week).
- Mobility: Standard (£28.70 per week) or Enhanced (£75.75 per week).
- How to Apply: Applications can be made through the UK government website or by calling the PIP claims line.
3. NHS-Funded Nursing Care
If you require nursing care, you may be eligible for NHS-Funded Nursing Care. The NHS provides this benefit to contribute towards the cost of nursing care provided by a registered nurse in a care home.
- Eligibility: Assessed as needing care from a registered nurse.
- Rate: The standard rate for 2024 is £235.88 per week.
- How to Apply: The care home or your local authority should initiate the assessment for NHS-funded nursing care.
4. Continuing Healthcare (CHC)
NHS Continuing Healthcare (CHC) is a package of care for those with significant ongoing health needs, funded entirely by the NHS.
- Eligibility: Assessed based on health needs, considering factors such as the complexity, intensity, and unpredictability of your condition.
- Coverage: Full cost of care home fees, including accommodation and care.
- How to Apply: An assessment is conducted by a multidisciplinary team, usually coordinated by your local Clinical Commissioning Group (CCG).
5. Council Tax Exemptions and Discounts
If you move permanently into a care home, you may be entitled to a Council Tax Exemption on your previous home, or discounts if the property remains occupied by others.
- Eligibility: If your home is left unoccupied due to your move into a care home.
- Rates: Full exemption for an unoccupied home or a single person discount (25%) if only one person remains.
- How to Apply: Contact your local council to apply for exemptions or discounts.
6. Pension Credit
Pension Credit is an income-related benefit for people over state pension age, designed to top up weekly income.
- Eligibility: Income below a certain threshold.
- Rates: The standard rate for a single person is £218.15 per week, and for a couple, it’s £332.95 per week.
- How to Apply: Applications can be made online, by phone, or by post through the UK government website.
7. Disability Living Allowance (DLA)
If you were already receiving Disability Living Allowance (DLA) before moving into a care home and are under 65, you might continue to receive it.
- Eligibility: Already receiving DLA before entering a care home.
- Rates: Varies based on individual circumstances.
- How to Apply: Contact the DWP for more information and to notify them of your move.
Additional Financial Tips for Self-Funders
Explore Local Authority Deferred Payment Agreements
Some local authorities offer deferred payment agreements, allowing you to use the value of your home to pay for care home fees, which are repaid when the home is sold.
Check for Savings and Investments
Ensure that any savings and investments are optimally managed to cover care costs. Consulting a financial advisor can provide valuable insights into making the most of your assets.
Consult with a Benefits Advisor
A benefits advisor can help ensure that you’re claiming all the benefits you’re entitled to, potentially increasing your income and easing the financial burden of self-funding.
While self-funding care home fees can be a significant financial commitment, various benefits and entitlements are available to help ease the burden.
By understanding and claiming these benefits, you can ensure that your loved one receives the necessary care without undue financial stress. Always seek professional advice to ensure you’re making the most of the available support.
For further assistance and guidance, consider reaching out to financial advisors, legal experts, or local support organisations dedicated to helping families understand care home funding options.
Our friendly team here at Ashberry Care Homes can help – enquire today.
