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State Funding for Long Term Care

Our Advisers predominantly offer advice for those paying for Long Term Care in England.  Therefore, the figures noted below refer to England only.  However, we are happy to provide further information about paying for Long Term Care in Wales and Scotland.  Please contact us directly if your circumstances are such that you would like us to do this.

Based on the current financial year 2017/2018, anyone with assets or savings of more than £23,250 (possibly including the value of their home) is expected to make their own arrangements and pay for the full cost of their care.  This is known as “self-funding”.

A reducing scale would be applied for people with assets between £14,250 and £23,250.  This is represented by a personal contribution of £1 per week for each £250 in assets over £14,250 and up to £23,250.

For example, someone with assets of £17,000 would be expected to contribute £11 per week towards their care (the difference of £2,750 ÷ £250 x £1 = £11).

If an individual’s assets have a total value of less than £14,250, care will be fully funded by the State.

Mind the Gap
However, there can still be a gap between the fees charged by a Care Home and the maximum the Local Authority is willing to pay for that standard of care.

The maximum the Local Authority is willing to pay is often known as the “standard rate” or “contractual rate”. This varies from one Authority to another and may not even be enough to pay for some Local Authority-run homes.

This can often mean a difficult decision for families to fund the shortfall or move the person needing care to a home with lower fees.  If there are no suitable homes within Local Authority financial limits, in some cases the Local Authority may pay the full amount but this is not guaranteed.

Maximum Local Authority Funding
It is important to note that even if you should qualify for the Local Authority to fully fund your care, they will take all your income, bar your Personal Expenses Allowance (currently £24.90 per week in England 2017/2018), away from you as contributions towards their funding of your care.  This would also include any benefits that you may be eligible for if claimed ie Attendance Allowance.  The Local Authority will automatically assume that you are claiming any benefits to which you may be entitled, so it is important to check that all relevant benefits are taken up.


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