Funding Live In Care
Supporting you all the way.
Funding your or your loved ones’ care needs may seem like a daunting prospect; however, there are many avenues for financing live-in care. Here at VersaCare, we are happy to help you with your entitlements and work with other agencies to help you get the support and funding that you need. Unlike paying for a place at a residential care home, with live-in care, you would never be forced to sell your home; our carers come to you at a more affordable cost.
We are on hand to walk you through all of the options available, helping you find the best way to manage your or your loved ones’ care.
Types of live-in care funding
Direct payment from local authority funding
Depending on your financial situation, you may be eligible to receive a personal budget from your local council that fully or partially pays for your care needs. It is important to speak to them early on in your care journey as receiving this personal budget directly to you, rather than the council or other organisations managing the budget, will allow you to maintain control over your care needs and arrange live-in care. Find out more about direct payments and personal budgets below.
A “means test” on your income and capital will determine whether you are eligible for this direct payment from the council. If your capital is over £23,250, you will have to pay for your live-in care service in full. If you have between £14,250 and £23,250, the council will contribute some of the money required. If you have less than £14,250, your capital won’t be included in the test, and the council will pay for your care, but any eligible income will be taken into account for contributions to the cost of care.
As you continue to live in your own house when receiving live-in care, the value of your property won’t be taken into consideration during this “means test”. They also won’t take into account the value of your possessions or any life insurance policies, allowing equity to remain for anybody the client wishes to include in their willed estate. If you were to go into residential care, then the value of your home would be included in this “means test”.
NHS Continuing Healthcare Funding
When a person has serious and ongoing Care needs, the NHS should fund the care. Recently, many NHS authorities have made it extremely difficult to get Continuing Healthcare Funding (CHC) and appeal any decision. However, if you are entitled to this funding, we still recommend asking for an initial assessment.
Those who require complex support for ongoing health conditions, care needs that require complex support or in need of palliative care may be eligible. The first step to receiving this funding is completing the continuing healthcare checklist to determine whether you or your loved one qualifies. Once you have gone through this checklist to see if you qualify for funding, you can then request an initial assessment. An initial assessment can be requested at any time.
If a care assessment determines that only several calls per day are required, then you or legal advocates have the choice to request a Direct payment and then select your own provider for these calls. This will reduce the amount you need to pay directly for live-in care.
Support From Charities
Some people may also be eligible for funding support from third-party organisations such as charities. For example, those needing palliative care for cancer are often helped with funding by Macmillan Cancer Support.
There is also support from charities for those seeking respite care, The Carers Trust offers grants to carers to provide respite care. There are also many other local and nationwide charities that offer grants and support for funding respite care. The Turn2Us website has a grant search feature that helps you find grants that you’re eligible for.
Self-Funding Your Live-In Care
If these aforementioned options for funding live-in care are not applicable to you, then self-funding your or your loved ones’ care will be necessary. However, there are still many avenues for securing funds without the need to sell your home. While these are common avenues people use, we always recommend talking to a financial advisor to make sure you choose the best option for your circumstances. Citizens Advice are always a good first step to discuss options.
Home reversion plans
A home reversion plan means you sell all or part of your home in return for a regular income, cash lump sum, or a mixture of both while remaining in your home. Once the person passes away, the reversion provider sells the home to recoup their costs. If only part of the property was sold to the reversion provider, then the remaining share still belongs to the estate and will go to the beneficiaries.
If a surviving partner or dependent was granted the right to remain in the home as part of the agreement, the sale is delayed until they also pass away or move into long-term care.
Equity release
Equity release allows you to access some of the money tied up in your home without having to move. A loan, typically a lifetime mortgage, is secured against the value of your home, and this doesn’t need to be repaid until you pass away.
While this is very similar to a home reversion plan, you retain full ownership of the property. The loan, plus any accrued interest, is repaid by selling the property when you pass away.
Both home reversion plans and equity release can be used to pay for live-in care. However, these can affect the benefits and direct payments you receive as you’ll either have a lump sum or monthly income. In either case you will never have to leave your home whilst you are alive
Downsizing Your Home
Another option which might be available to you is downsizing your home. If you currently still live in a large family home and it’s just you and your partner, you may be able to downsize and use any leftover money from the sale to fund your live-in care. This may also help you save on other costs, such as council tax and energy bills.
Benefits
You may also qualify for certain benefits which can boost your income or exempt you from paying for certain costs, helping to finance your live-in care.
Attendance Allowance
Attendance Allowance is a benefit for those over the state pension age who need help with care needs due to an illness or disability and have needed that care for at least 6 months. There are different weekly payment rates depending on your specific care needs, such as around-the-clock care or for a terminal illness. This benefit is not means tested, and claiming does not impact any other benefits you receive.
Personal Independence Payment (PIP)
People who are under state pension age who require long-term care at home due to a disability or illness can claim Personal Independence Payment. Depending on how you are affected by your condition, you could be eligible for both daily living and mobility payments. This benefit is not means tested, so it does not take into account your savings or national insurance contributions, but you have to have lived in England, Scotland or Wales for at least two of the last three years.
Industrial Injuries Disablement (IIDB)
If you require live-in care due to a disability caused by a workplace accident or illness, you could be entitled to the Industrial Injuries Disablement benefit of up to £221.50 per week, depending on your level of disability and needs.
Council Tax discounts and exemptions
Additionally, if you are a recipient of certain benefits, you may also be eligible for a council tax reduction, but this is up to individual councils to decide. Your local council can provide more information.
We have collected a list of useful links on a range of benefits you may be entitled to:
About Us
VersaCare is a friendly Care Agency specialising in highly personalised 24-hour Live-In Care, across the UK, with local Care Managers. We do our very best to make sure our clients retain as much independence as possible.
Our Live-in care service covers support and assistance with personal care, including Medication, washing, dressing, personal appearance (including brushing hair, shaving etc.) continence issues or accidents. See this page for an introduction to our full range of services.
We also provide highly skilled care for those requiring Catheter and Stoma care, PEG feed, palliative care, hoisting and other major mobility support.
Live-in domestic duties include shopping, cooking, cleaning and laundry. Care and support may also be required due to learning difficulties, including assistance to participate in community activities. If clients you cannot be left alone due to frailty, infirmity, confusion, or require two care workers to provide the necessary care at times, or someone to cover our care worker’s break, we can help to work with family or co-ordinate supporting agencies.
Our couples rates apply when there are two people who require different levels of care and rely on one live-in care worker, with possible additional support as detailed above (the rates are normally approximately 40-50% more than the single rate)
We pride ourselves on our excellent report from the CQC, and consistently ‘Good’ rating. We can support you in getting the funding you need, and provide you with guaranteed, market-leading, prices. If you would like more information on how can you pay for a live-in carer, then get in touch with us here at VersaCare.
Useful links for more information:
FAQs
Will the local council pay for my home care?
This depends on your financial situation. Following a care needs assessment, your local council will determine your care needs and run a means test to see if you are entitled to help with the cost of care. Your income, capital and savings are all taken into consideration to decide whether you need funding support. If your wealth is below £23,250, you qualify for some funding support for your care.
How much does it cost to pay for my own live-in care?
Our starting rate is £945 per week, and unless in especially high needs situations is the rate charged, which is hundreds of pounds less than residential care homes.
Can I get other financial support to pay for my live-in care?
Certain benefits for care needs are available to help top up your income to pay for any live-in care. Attendance Allowance supports those over the state pension age who need extra help due to an illness or disability. A personal independence payment is there for those with similar needs who fall under the pension age. Again Citizens Advice is a very useful source of information as to funding and benefits that may be available.
Is the money (direct payments) paid directly to me?
The money can be paid to you directly, or to someone of your choice who can help to look after it for you. You will then be in a position to buy-in the care of your choice. If you prefer, the local authority’s Care Manager can use your personal budget to arrange the services of your choice.
What can I spend direct payments on?
You are allowed to spend the allocation on any reasonable means of enhancing your wellbeing, this will have been set out in the Support Plan.
The Personal Budgets are to be used to pay for care and help in the home. You can choose who you employ.
The Local Authority will keep a list of Approved Providers who have been vetted. Alternatively, all providers are registered with the Care Quality Commission, and their latest report and rating can be checked here.
Anything it can't be used for?
At present, personal budgets are not awarded to people in residential care, but that is under review and could change.
Can you clarify what personal care is?
You are entitled to financial help if you are assessed as requiring personal care:
- Washing and dressing
- Eating and drinking
- Mobilising
- Continence
What are Personal Budgets and Direct Payment?
How does the direct payments process work?
First, the local authority determines how much money you might need, and more importantly, how much they will contribute, and if you want to manage your own money with a personal budget. Once agreed and if you wish to go ahead with a live-in care service, a support plan is put together, setting out your priorities and goals and how we can help meet them. When you agree the Care Support Plan you start to receive the cash.