Self-funding and funding eligibility

If you think you need care in a care home, it's important to check your needs can be met by the care home of your choice.

You can:

• have your needs assessed by an independent care consultant
• ask us to undertake a care assessment of your needs
• get advice on local care homes that could meet your needs

We understand that considering how to pay for care may come at a very anxious and stressful time; find out more about:

• receiving benefits and self-funding a care home
• financial implications of self-funding in a care home
• considering finance options when self-funding
• funding ongoing care costs

Receiving benefits and self-funding a care home

If you're in receipt of either Attendance Allowance, Disability Living Allowance or Personal Independence Payment, these benefits continue to be paid whilst you are funding your own care in a care home.

You or your appointed representative must contact Department for Work and Pensions (DWP) about your change of circumstances when you move into a care home.

If you've not claimed benefits in the past, and have had care needs for at least 6 months, we can help you claim this additional income.

Be aware that, as care in care homes is provided across 24 hours each day, those in receipt of Attendance Allowance and Disability Living Allowance should be in receipt of the higher rate of these benefits.

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Financial implications of self-funding in a care home

As a self-funder, you should consider seeking independent financial advice; our financial information and advice provides guidance about the considerations you can make.

For example, you may decide to use capital to purchase a product that will cover the cost of your care fees into the future. This may provide you with the knowledge and security that you'll continue to have choice and control over your care, as it would be unlikely that you'll need support from us in future. This may also provide reassurance to your family that they should not have to make difficult financial decisions relating to your care.

If you decide not to seek financial advice, or are only just above the higher capital limit, there are still ways you can seek protection against future increases in care costs.

We recommend that if you are likely to need our funding support that you get a written agreement, from the care home you are going to live in, setting out what payment they'll require when you become eligible for funding.

Some care homes may accept the local authority funding rate, others may require an additional fee known as a top-up arrangement. If a top-up is required, you may decide to look for alternative accommodation if you know the top-up payment could not be met by family members.

If you're self-funding a care home and have capital dropping below the higher capital limit, but you own a property, we can support you through a deferred payment agreement. The charges for setting up and administering a Deferred Payment Agreement can be found online on our current fees, charges, allowances and rates page.

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Considering finance options when self-funding

Self-funding care in a care home can be a significant and long term financial commitment, so it's very important that financial considerations are made. We have contributed to the design of a 2 minute video, published by the Social Policy Research Unit at York University, which should help your think of the finance options available.

Further information is available online on the Getting Informed, Getting Prepared website.

You may also benefit from the experience of others who have arranged care for loved ones who are self-funding, see: socialcaretalk.org to help you understand what it is like to be an older person or a relative of an older person, who pays for their care themselves.

Funding ongoing care costs

If you're in a care home, you should contact our Adult Social Care Community Team just before your capital drops below the higher capital limit.

We'll undertake a care need assessment, and you may be required to have a financial assessment to see whether you can contribute towards your ongoing care costs, from your income.

We'll check that your capital is less than the higher capital limit and you meet the care eligibility criteria before making a funding offer and before funding starts, so it's important that you do not stop paying your care home in the meantime.

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Also see

• Assessing your needs
• Choosing your care and support (including Direct Payments)
• Paying for independent living with 24-hour support