Common Care Home Funding Myths
The social care system is complex and confusing, meaning there are often misunderstandings around the topic of care home funding.
It is estimated that 1.4 million elderly people in the UK do not currently have access to the care and support that they need, and it’s worrying that the confusion about the means of paying for a care home may be contributing to this number may be contributing to this number.
There are many misconceptions around funding care homes, which can cause added unnecessary stress in what may already be an emotionally challenging time. We debunk some of the most common myths around care home funding below.
Myths Causing Care Home Funding Confusion
If you’re just beginning your care home research, it is important to ensure you have reliable, factual, information for you to make an informed decision. Some of the following statements are widely assumed to be true with regards to the ways in which paying for a care home is possible. Continue reading for more information about the truth behind these myths and gain clarity on care home costs.
My family will be held responsible for paying for care home fees
Myth! Your family are not obliged to pay for your care home fees, this only comes into play if a legal contract is signed between the family member and the care provider.
There is of course the option for them to volunteer to help with care home fees, whether that is a top-up fee (on top of government funding or self-funding) or if they wish to cover the care home funding entirely. This must be agreed directly with the care provider, in which a legally binding contract will be drawn up.
Another exception is if you have joint assets with someone, which will be taken into consideration within initial means testing.
I will be forced to sell my home to cover the cost of living in a care home
Myth! You don’t have to sell your home in order to afford the costs of paying for a care home. For many people, this can be one of the most off-putting elements of considering the move into a care home, and selling your family home in order to pay for care home funding can be a devastating prospect.
However, you are able to set up a Deferred Payment Arrangement with the local authority, which allows you to borrow money depending on how much your house is worth. This can then be claimed back from the sale of the house at a later date and means that occupants can continue to live there, or it can be rented out in order to help with paying for a care home.
If I’m paying for a care home and run out of money, a friend or family will have to continue to pay on my behalf
Myth! If you are self-funding the cost of living in a care home and run out of money, the local authority will begin contributing towards your care fees once your total capital of £23,250 (in England) is reached.
Once you have reached your total capital of £14,250 (in England) they will begin to cover the whole cost of your care (to a certain limit – top up payment may be required depending on circumstances and level of care).
It is important to remember that most funding is means-tested, so dependent on the area you live in there are normally two stages required before accessing authority funded care; a needs assessment, which considers your care requirements, and a financial assessment which looks at your capital and income.
Care Home Funding Made Clear
We understand that considering moving a loved one into a care home is a stressful and emotional time, and finances and funding options can add to this.
Avery aims to ensure that each resident and their family are supported with dignity in their care home journey.
For more information on our portfolio of fantastic care homes, please get in touch today to speak with one of our helpful advisors who would be happy to provide further information specific to the care homes you are interested in.