Approximately half of care home residents are self-funded, paying for their care out of their own savings, investments, and property. The other half are funded by the state, through the local authority.
The amount you pay for your care and the state’s contribution will vary depending on where you live in the UK (England, Wales, Scotland, or Northern Ireland) and your financial situation, including the value of your savings, investments, and property
Self Funders
State funded
State-funded care homes are paid for by the local authority. The local authority will use income such as state or private pensions to help cover the cost of care. However, you will still need a certain amount of money each week for personal expenses, which is called the Personal Expenses Allowance and varies depending on where you live in the UK.
If you want to stay in a care home that is more expensive than the one chosen by the local authority, it may still agree to pay for it, as long as a third party, such as a family member, friend, or charity pays the extra. The extra amount, called a top-up fee, cannot be paid by you as the resident.
To find out if the local authority will contribute to your care home fees, contact them to schedule a free Needs Assessment. The assessment will evaluate your care needs and support required. The local authority will then conduct a Financial Assessment, also known as a means test, to determine if they will pay for some or all of your care costs.
If your capital is below a certain limit, your local authority will pay for some or all of your care home fees. In England, the upper capital limit is £23,250. The capital limits differ across the UK.
