Paying for residential care: An overview

It is only natural that the cost of care will be a major consideration when making the decision to move an elderly relative into a residential care home. If your loved one has dementia or requires nursing care, this can be doubly worrying because it may be clear that they need care from a trained and experienced professional.

The good news is, even if your loved one does not have savings or assets, there are still options available which means they can still receive the care they need. This also means you will not be expected to contribute towards the costs of your loved one’s care, so you do not need to worry about your own finances being impacted.

In the UK, the cost of residential care can vary. On average Many care home residents typically pay around £1,000 per week, however, in certain circumstances, this can be much higher depending on the level of care your loved one needs and where in the country they live. In extreme cases, some residential care homes in the UK charge approximately £5,000 per week.

As of 2023, your loved one will be required to pay for their own care if they have savings or assets that total £23,250 or more. If they have less than this, they are likely to qualify for financial support.

We will cover more about this process below.

Funding and support for residential care

If your loved one has assets that total less than £23,250 and requires residential care, you should arrange for them to have a needs assessment. This can be organised on the government’s website (gov.uk). 

An adult social worker employed by your local council will then undertake the needs assessment at your home or the home of your loved one. During the needs assessment, they will look at your loved one’s living situation and needs to determine the level of care they require.

The social worker can then organise for your loved one to have a financial assessment, otherwise known as a means test. It is at this stage when your loved one will be assigned a budget that will be enough to pay for at least one care home that meets their needs in the local area.

Your loved one may also be entitled to receive financial support through other schemes run by your local authority, including:

• Housing benefits
• Attendance allowance
• Personal independence payment (PIP)
• Pension credit

Are next of kin responsible for care home fees?

No, your finances nor the finances of other relatives will be taken into consideration during a financial assessment (means test). Therefore, despite being next of kin you are not responsible for paying care home fees, however, you may wish to contribute towards costs if your loved one’s budget does not cover your preferred care home.

Can you refuse to pay care home fees?

Unfortunately, if your loved one has assets or savings that exceed £23,250, they will be expected to use this to pay care home fees.

What happens when the money runs out?

If your loved one’s savings drop below £23,250, they may qualify for financial support. To prevent disruption to care, it is recommended that you arrange for a needs assessment and means test ahead of your loved one’s funds dropping below £23,250.

How much money can you have before you have to pay for care?

If your loved one has assets or savings that total more than £23,250, they will have to pay for their own residential care until their assets drop below this amount.

Residential care home costs can be a major worry for anyone with a loved one who requires full-time, professional care. Thankfully, there are options in place whereby, if your loved one cannot afford the care fees they can still receive care that does not impact their wellbeing or your own finances.

Here at Ashberry Care Homes, we have a network of residential care homes across the UK that provide affordable but experienced care.

Our care homes include:

• Meadowview, Warrington – From £916.44 per week
• Moorhouse, Hindhead – From £1032.70 per week
• Holmer Court, Hereford – From £852.24 per week
• Broomy Hill, Hereford – From £1046.97 per week
• Blaenos House, Llandovery – From £900.39 per week
• Allt Y Mynydd, West Wales – From £991.34 per week

Discover more about our residential care services or get in touch for more information.