Avery Care Home Funding and Finance Information
Are you researching the possibility of moving yourself or an elderly loved one into a care home? One of the first elements to consider is of course who pays for care home fees.
At Avery, we understand that exploring care home fees and funding options can be daunting. Our experts provide all the support you may need if you are making the first steps in considering care homes. We believe in full transparency regarding care home fees, and our easily digestible guide aims to provide a helpful overview of your care home funding options, and what each of these involves.
Alternatively, you can also visit any of our homes and speak to a friendly team member to discuss the care home funding options available to you or your loved one.
Am I Eligible for Care Home Funding?
The cost of full-time care is affected by several factors, including the type of care you require, individual home fees, room size, and location.
If your care needs are based on your health, the NHS may arrange your care and pay for your care fees under NHS continuing healthcare (NHS CHC). If you do not qualify for NHS CHC but require nursing care, the NHS may still contribute towards the cost of your care. This is known as NHS-funded nursing care (NHS FNC), with payments made directly to the care home.
Eligibility for NHS CHC depends on your individual requirements and whether your care will be focused on addressing your primary health needs. To determine your eligibility, a team of health professionals will assess your care needs.
If you are not eligible to receive full NHS care home funding, you may qualify for financial support from your local authority, which means they will pay some or most of your care fees.
Your local authority will conduct a care needs assessment and a means test that calculates whether you qualify for local authority care home funding. The means test considers your capital and income, savings, property, investments, pensions, and any benefits you are eligible for.
If you are eligible to receive local authority care home funding support towards your care fees, they will calculate the overall cost and how much of this you must contribute using the means test. The local authority will pay for some, or all your care home fees if your capital is below the upper capital limit.
How Does Paying for Care Work?
Currently, if your capital is over £23,250, you will be required to pay your care fees in full. This is known as self-funding. If you are a self-funder over the age of 65 needing care, you can claim Attendance Allowance. This is paid at two different rates: £61.85, or £92.40 per week. How much you are paid depends on the level of care and support you need.
If your capital is between £14,250 and £23,250, you will contribute towards your care fees from your income included in the means test. You will also pay a ‘tariff’ income based on your capital. The local authority should pay for the remaining cost of your care.
If your capital is less than £14,250, you will no longer pay a ‘tariff’ income based on your capital, but you will continue paying from your income included in the means test. The local authority will pay for the remaining cost of your care.
We highly recommend speaking with a financial advisor to help determine the costs involved in the type of care you need, who will be able to advise on the benefits you or your loved one may be entitled to.
What Happens During a Financial Assessment For Care?
A financial assessment for care determines how much the local authority will contribute towards care fees, considering the kind of care and support you need, how much this will cost, and how much you can afford. The process is free and involves a representative from the Local Authority contacting you to discuss details such as:
– Stocks and shares
Before the assessment, it is best to ensure you have all the information you need. This includes details about savings you hold in bank accounts, building societies, ISAs or premium bonds, and any stocks and shares or property and land you own.
Once the assessment has been completed, the Local Authority will inform you how much your care will cost and the amount you will need to pay.
If you qualify for local authority care home funding support, you will be offered a personal budget. A personal budget is the amount of money the Local Authority has allocated to you to pay for your assessed care and support needs. This can be taken as a private payment, known as a direct payment, or the Local Authority can manage the budget for you and commission services on your behalf.
If you do not qualify for local authority funding, you will need to pay the total cost of your care. This is known as self-funding. If you plan to self-fund your care home fees, you can still ask the local authority to conduct a needs assessment. This can help you choose a suitable care home, as the local authority can provide you with information and advice tailored to your individual requirements.
What Is The Cap on Care Costs?
The cap on care costs is the maximum contribution individuals may need to make towards their care costs over their lifetime. The government has announced a cap of £86,000, which is expected to come into effect from October 2025. Therefore, if you are self-funding your care plan, the government will pay for the care element of your care home fees once you have reached this cap.
Please note that the government will only pay for your eligible care needs, and the cap does not cover daily living costs incurred whilst residing in a care home, including Avery’s care homes. Daily living costs can comprise food, rent, accommodation, energy costs, and activities. You will pay for your everyday living costs throughout your care journey, including once you have reached the care cap.
How Does The Care Cap Relate to The Capital Limits?
From October 2025, implementing the care cap will mean the capital limits will change. The upper capital limit will increase to £100,000. If you have capital above this limit, you will become self-funded, paying your care fees in full.
If you have significant assets and are self-funding your care plan, the government will fund your eligible care needs once you reach the £86,000 cap. The remaining care fees will need to be met by a third-party top-up. Please note that daily living costs, including food, energy costs, accommodation costs and activities will not be met by the government, including once you have reached the care cap.
The lower capital limit will increase to £20,000. Therefore, if you have assets of less than £20,000, you will contribute only what you can afford from your income. This amount is calculated based on a financial assessment, also known as a means test.
If your capital is between £20,000 and £100,000, you will be eligible for some local authority funding. This will be means-tested, and you will contribute to your care home fees with a ‘tariff’ income based on your capital. The local authority will cover the remaining cost of your care.
We understand that you may have concerns about the care cap and how this may affect you. Please do not hesitate to contact us if you would like further information or advice.
What is included in my weekly residence fees at an Avery care home?
Your weekly residence fee is inclusive of:
– Heat and lighting
– Bills, including gas and electricity
– Communal facilities
– TV Licence
– Prescribed medication
– All personal care
You can feel reassured, knowing there are no hidden costs to pay in your care home fees, as everything included will be outlined within your care home contract agreement. We believe in full transparency regarding your care home package and contract. All fees you pay are agreed to as part of the Residency Agreement you will sign.
Are there any additional charges which may be incurred when residing in an Avery care home?
The following services are not included in your weekly residence fee:
– Visitors’ meals
– Telephone rentals and calls
– Dental requirements (non-NHS)
– Optical requirements (non-NHS)
– Medicines (not free to the Resident under the NHS)
– Physiotherapy (non-NHS)
– Personal dry cleaning
– Staff escorts to hospital, appointments or elsewhere
– Taxis and other transport
– Personal toiletries
– Other items of a personal nature
Many of our residents often treat themselves to the hairdresser, mobile beauty therapist, chiropody service, newspapers, magazines, or even a meal at their local pub. These items will be charged on a monthly account basis in arrears. Please note that this list is not exhaustive. Further examples of additional services can be provided by the Home Manager or Administrator, with prices available upon request.
What to Care Home Fees if I Run Out of Money?
You will be reassessed if you are in full-time care and no longer have the required income or capital assets to cover your care fees. Once your capital falls below the £23,350 threshold, you may become eligible to receive financial support from the local authority.
You can ask the local authority to carry out a review whilst you are in the care home if your savings will soon drop below the lower capital limit. This ensures the local authority can then take over the process of paying for your care fees. We advise that you provide your local authority with as much notice as possible if this is likely to be the case.
Our team will support you in understanding your potential funding options and the funding you may be entitled to.
Where Can I Access Further Support on Care Home Fees?
We know that beginning to look at care for yourself or a loved one can be daunting and sometimes overwhelming. We are here to support you during this process; please do not hesitate to speak with a member of our friendly team if you would like further information and advice.
We would also suggest the following resources for further support: