Navigating the Costs of Live-in Care  

We know that considering live-in care for yourself or a loved one raises many questions, particularly around funding. At Springfield Healthcare, we believe in providing clear, compassionate guidance to help you navigate these important decisions. This guide outlines the various options available, helping you understand your eligibility and how to make the best financial choices for your unique situation. 

Options for Funding Care 

Depending on your circumstances, you may be eligible for financial support to help cover the costs of live-in care. 

Disability Living Allowance (DLA): For those under 65 who require care, an assessment for DLA may determine eligibility for weekly payments ranging from approximately £22 to £140. 

Attendance Allowance: If you are over 65, you may be eligible for the Attendance Allowance. The amount you receive depends on whether you need help during the day or both day and night, with a lower rate of about £55 per week and a higher rate of £82 per week. 

These benefits are non-means-tested and paid tax-free. 

NHS Continuing Healthcare (CHC) Fund: If you have complex, long-term care needs, the NHS may cover the full cost of live-in care in your own home. This is also non-means-tested, but you must be assessed by the NHS to see if you meet the specific criteria. 

Local Authority Funding 

Your local council can provide financial support based on a two-part assessment: 

1. Needs Assessment: This determines what your care requirements are. 

2. Financial Assessment: The council will look at your income and savings to see if they fall below a national threshold. In the UK, this threshold is £23,250. 

If you are eligible, the council will create a support plan detailing how your needs will be met with the allocated budget. For homecare, many people choose to receive this budget as a direct payment, which gives you the flexibility to choose your own carer. 

An In-Depth Look at Funding Options 

Here is a list of the different ways you can fund live-in care: 

Carer’s Allowance: If you are providing care for a loved one for over 35 hours a week, you may be eligible for an income of around £67 per week. 

Personal Independence Payment (PIP): A government benefit for individuals with a long-term condition or disability, which may be an option before reaching state pension age. 

Care Annuity: A tax-efficient option where a portion of your capital is used to purchase a guaranteed, lifelong income to pay for your care. 

Property-Based Solutions: 

• Selling or Renting Your Home: Some choose to sell their home to fund care. 
• Equity Release: This allows you to access the cash value of your home while continuing to live in it. This can be done through a lifetime mortgage (a loan against your property) or a home reversion plan (selling a portion of your home to a company). Be aware that interest on lifetime mortgages can accumulate, and home reversion plans mean you lose sole ownership of your property.
• Deferred Payment Scheme: An arrangement with your local authority that uses the value of your home to pay for care fees. The council secures a legal charge on your property, which is repaid when the home is sold.

Using Savings and Pensions: 

• Self-Funding: If your income and assets are above the £23,250 threshold, you will need to self-fund. You can use your savings, investments or property. 

• Pensions: Pensions can be used to fund care, but you should ensure you retain enough to cover your daily living expenses. 

Important Legal and Financial Considerations 

Navigating the financial landscape of long-term care can be complex. We strongly recommend seeking advice from a professional financial advisor. The Society of Later Life Advisers (SOLLA) website is an excellent resource for finding an accredited advisor who specialises in these matters.

At Springfield Healthcare, we are dedicated to making the process of arranging live-in care as simple and stress-free as possible. Our compassionate team will take the time to understand your unique needs and preferences. We will help you explore your options and then match you with a wonderful live-in carer who is the perfect fit.