Everything you need to know about care home fees and costs
If you’re considering a residential care home as an option for you or your loved one, we have put together a guide of everything you need to know about care home costs and fees.
Care home costs can vary across the country and how much you need to pay for care will be dependent upon factors such as where you live, the type of care needed as well as who is providing the care.
Being informed about what to expect in relation to care home costs and financial support available will help you make the best decision for you or your loved one.
Read on to find out more information about care home fees and costs, or contact us to speak to a member of our team about our residential care service.
How much do care homes cost?
Social care services in the UK can be expensive, with accommodation costs hitting £1000 and more per week. On average, care home fees can range from £30,000 to £60,000 a year; this figure increases if nursing care is needed.
Care homes that provide specialist care for dementia or any form of specialist care will have higher fees than residential care. This figure will also increase or decrease as it depends on where you live. Residential and nursing care is more expensive down south than in the North West.
How much will I need to pay for a care service?
When it comes to paying care home fees, there will be a financial assessment of your ability to pay and this is called a Care Needs Assessment.
If you are eligible for financial support, your local council can contribute towards care home fees. The assessment will determine whether or not you or your loved one should receive care in a care home and by looking at income, the means test will calculate whether you are eligible for financial assistance with the costs.
If you are planning to have live-in care and support, then property will not be counted in the means test. The same may also apply if you live with someone who is disabled or with someone over the age of 60. In this circumstance, you will not need to sell your home and you could be entitled to financial support.
From the means test, your local council will need to work out the overall cost of your care and how much you will need to pay towards this. They will look at your income and any form of capital you have i.e. savings in order to determine the amount. Any income from disability benefits will not be included in the means test.
You will be expected to pay towards the care costs from income included in the financial assessment such as pensions but will be given a Personal Expenses Allowance (PEA) of at least £24.90 per week.
When will I be required to pay for my own care?
If you have over £23,250 in capital then you will be required to pay the full care fees. If you have between £14,250 and £23,250 then you will contribute from income included in the means test and any other ‘tariff’ income based on capital, and the council will cover the rest.
If you have under £14,250 in capital then you do not need to pay a ‘tariff’ income but will have to pay from income in the means test and the council will also contribute.
If you are paying for the care home costs, then you will be a ‘self-funder’. However, if you are getting help with some or all of the costs from your local council, then it will be considered to be ‘state-funded’.
What will be included in care home costs?
Depending on where you live and what type of care service you require, this will determine how much care home costs will be.
For people living with dementia, they will need a higher level of care and costs will take into consideration accommodation, cooked meals, utility costs and 24 hour care from staff.
Make sure you budget
If you or your loved one are planning to move into a care home, make sure you are fully aware of what is covered in the costs as you do not want to be hit with unexpected expenses and this will help you to budget effectively.
If you would like to find out more information about residential care home costs, please get in touch and a member of our team will be happy to discuss things further.