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What Happens When Self-Funding for Care Home Fees Runs Out?
When your loved one moves into a care home as a self-funder, it's reassuring to know they're receiving the care they need. However, concerns about what happens when the money runs out or savings run low can cause significant anxiety. This guide provides comprehensive information about the options available when you can no longer pay for care home fees through self-funding.
Understanding Self-Funding in Care Homes
What is Self-Funding?
Self-funding means the care home resident pays for their care home fees out of their own pocket. This typically occurs when they have assets or savings above the threshold set by the government for receiving funding from your local authority.
How Long Will the Money for Care Home Fees Last?
The length of time funds last depends on several factors, including the cost of care, the individual's care needs, and their assets and income. It's essential to regularly review the financial situation to anticipate when money runs out or savings run low.
Steps to Take When Your Savings Run Low
1. Request a Care Needs Assessment
When you foresee that funds will soon be depleted, arrange a care needs assessment with your local council. This assessment determines the level of care and support your loved one requires and is the first step in accessing local authority funding.
2. Complete a Financial Assessment
Contact your local authority for a thorough financial assessment. The council uses this to determine if your loved one qualifies for funding when their assets fall below the set threshold. This assessment examines savings, the value of your home, and other financial resources.
3. Understand the Thresholds
In England, as of 2024, if your loved one's assets are below £23,250, they may be eligible for some help with care costs from the local council. If assets fall below £14,250, the local authority is responsible for paying the majority of care fees, though your loved one may need to contribute from their income.
4. Explore Local Authority Funding
If eligible for funding, the local authority will contribute towards the care home fees. However, this doesn't mean they will cover the full cost of care. There might be a difference between what the council pays and the actual care fees, known as a 'top-up fee'.
Options When You Run Out of Money
1. Top-Up Arrangements
If there's a shortfall between council contributions and the fees charged by your current care home, family members or the next of kin may consider paying a top-up fee. It's important to ensure these arrangements are sustainable long-term before agreeing to pay the difference.
2. Deferred Payment Agreements
A deferred payment arrangement with your county council allows you to use the value of your home to pay for your care without selling your property immediately. The council pays for residential care in a care home, and the amount is repaid later when the property is sold.
3. NHS Continuing Healthcare
If your loved one has significant health needs, they might qualify for NHS Continuing Healthcare funding. This is arranged and paid for by the local NHS and covers the full cost of care for those who need nursing care due to complex health and social care needs. It's worth checking if you're eligible for NHS Continuing Healthcare through a dedicated assessment.
4. NHS-Funded Nursing Care
For those who live in a nursing home but don't qualify for NHS Continuing Healthcare, NHS-funded nursing care may be available. This contribution helps with the nursing element of care costs but doesn't cover accommodation or personal care expenses.
Changing Care Arrangements
1. Moving to Council-Funded Accommodation
If your loved one cannot afford to stay in their expensive home once self-funding ends, they may need to move to an alternative care home that costs less. The local authority must offer at least one care home that meets assessed needs within their funding rates.
2. Reassessing Care Needs
As circumstances change, it's important to request a new needs assessment. This ensures your loved one's current care and support needs are properly met, especially if their condition has changed since moving to residential care.
Planning for the Future
1. Regular Financial Reviews
Regularly reviewing your loved one's financial situation helps anticipate when they might run out of money. This includes reassessing budgets and exploring whether they need home equity release or other options.
2. Seek Professional Advice
Consulting with specialists in social care funding can provide valuable information and advice. They can help explore various financial products and funding support to manage care costs effectively.
3. Understand Contracts and Obligations
Before your loved one enters into a contract with a care provider, ensure you understand the terms regarding what happens if they become council funded in the future. Some providers may require residents to move or pay a top-up fee if funding arrangements change.
4. Family Discussions
Have open and honest discussions about potential contributions towards shortfalls in care home costs. It's important for everyone involved to understand their responsibilities and prepare for various scenarios.
Summary
Running out of money while self-funding care home fees can be concerning, but there are several options available to ensure continued care. By understanding the steps to take when transitioning from being a self-funder to receiving local authority funding, you can navigate this process more confidently.
Remember that circumstances vary, and additional funding may be available depending on individual care needs. If care costs reach around £800 a week or more, it's worth checking if your loved one may be eligible for health-related funding.
For more guidance about paying care home fees or help with the cost of long-term care, feel free to contact us. Our team at Ashberry Care Homes is here to help you navigate these challenges and find the best solutions for your family's needs, particularly when facing a change in circumstances related to care funding.
Frequently Asked Questions
What happens when my money runs out while paying care home fees?
When you run out of money as a self-funder, contact your local council immediately for a care needs assessment and financial assessment. If eligible for funding, the council becomes responsible for paying most of your care costs, though they may require you to move to a less expensive home unless a next of kin pays a top-up fee towards your care.
Do I need to sell my home to pay for care if my savings run low?
Not necessarily. If you live in a care home and your savings run low, you can apply for a deferred payment agreement with your county council. This allows you to pay care home fees using the value of your home without selling it immediately. The council pays your residential home fees, and the amount is repaid when your property is eventually sold.
How does dementia affect whether you need to pay your care costs?
Having dementia doesn't automatically qualify you for free care. However, if your dementia causes complex health needs, you may qualify for NHS continuing healthcare, which would cover your full care home place costs. If not eligible for this funding, you'll still be required to pay according to the financial assessment, though you can request a reassessment if your condition changes after you've signed a contract.
