life in a care home

Life in a care home offers companionship, but many people have questions about how they will pay for their care home fees in Scotland.

As you face the prospect of moving into and paying for a care home, you may find yourself asking:

How much do nursing homes in Scotland cost? What about residential care homes?

Is there funding available for care home residents in Scotland? Will I qualify?

What will happen to my home? How will my loved ones cope if we lose our home?

These concerns can easily stress and overwhelm. To help point you in the right direction, this guide offers an introductory overview of your options for financing a care home place in Scotland. (See note 1.)

Let’s begin by breaking down the cost of a care home in Scotland.

The fee you pay for a care home in Scotland can include costs for:

  • accommodation (sometimes called the hotel cost, this can apply to a residential care home or a nursing care home)
  • personal care in a residential care home (24/7 support is provided by qualified care assistants who support you in washing, dressing, dining and socialising)
  • nursing care in a nursing care home (24/7 support in the same key areas is overseen by registered nurses, and is designed for people with specific medical requirements)

If you’re moving into a nursing care home, all three fees will apply. But if you’re moving into a residential care home, you won’t pay for nursing care.

Different sources of funding can be allocated to each service, and depending on your needs and financial ability, you may be entitled to public funding.

To find out whether you qualify for public funding, you should first arrange a care needs assessment through your local authority. The needs assessment will evaluate your day-to-day support requirements, and determine whether your needs can be supported within your own home, or whether a 24/7 care home environment is required.

This bit is particularly important: Regardless of your financial status, you must arrange a needs assessment through your council’s social work department before contracting with any care service providers. Failure to do so may jeopardise your eligibility for care funding, and possibly delay admission into a care home.

If 24/7 care is recommended, the care assessment will also specify whether a residential care home is suitable, or whether you should be supported in a nursing care home (typically because of a complex and/or ongoing medical situation).

After the needs assessment, the council will also undertake a financial assessment to determine your eligibility for public funding.

Read on for a more detailed look at how care home accommodation costs work within Scotland. We’ll also explore how nursing care and personal care in Scotland can be funded.

 

Care home accommodation costs in Scotland: how much are they, and do I qualify for funding?

an example of a care home in Scotland

Depending on your financial status, you may qualify for funding towards the accommodation costs of a nursing home or residential care home.

Let’s begin by asking: Could you imagine spending £852 per week on nursing care within a care home in Scotland?

What about £639 per week for residential care in one of Scotland’s care homes?

These figures represent the average care home fees in Scotland, as identified by Which? Elderly Care in the consumer organisation’s 2016-2017 research. (See note 2.)

Yet, the reality is that most people will find themselves footing the bill for a care home because of financial thresholds put in place by local authorities.

That’s because council funding for care home accommodation is linked to a person’s income, capital and savings. Most people won’t meet the threshold for accommodation funding support from their local authority.

Here’s the bottom line: If a care seeker has more than £26,500 in assets including home ownership then the local authority will not fund the accommodation costs incurred at a care home. (See note 3.)

So, if you have assets exceeding £26,500, you’ll need to finance the accommodation costs on your own, or with the help of family or friends.

If your capital value is between £16,500 and £26,500, you may qualify for financial support, although this depends on your income. The council will consider your income to be £1 per £250, between £16,500 and £26,500. In this case, you will be asked to contribute £1 a week for every £250 (or part of £250) that you have over the lower limit. (See note 4.)

But, if your capital is below £16,500, you may qualify for:

  • £667.09 per week for nursing care in Scotland, or
  • £574.42 per week for residential care in Scotland (See note 5.)

Free nursing care and personal care in Scotland: do I qualify?

nursing care in Scotland

Financial status should not affect your eligibility to receive funding for personal care or even nursing care in a care home in Scotland.

Thankfully, regardless of the care seeker’s financial status, you may be able to access council funding to qualify for free nursing and/or personal care.

Remember, you must first request a care needs assessment from your council’s social work department. If you don’t go through this process, or if you arrange your own care without first being assessed, you may lose out on funding.

If the needs assessment reveals that you do require personal care, and if you’re aged 65 or over, then you may qualify to receive £171 per week to cover personal care costs. However, the assessment must stipulate that your personal care needs can only be managed within a care home setting.

The council may also fund £78 per week for nursing care, if you are found to have an assessed need for nursing care, specifically within a nursing care home. There is no minimum age required in order to access nursing care funding.

If you qualify for both of these sources of funding, that’s £249 per week.

 

How to pay for a care home in Scotland

Councils will only provide an agreed amount of funding once a contract with a care home has been established. So, even if you’re arranging your own move, you should first ensure that payments made on behalf of the local authority can be made from the date you enter the home.

But what happens if you prefer a care home with costs that exceed the payments made by your local authority? You or a relative can make top-up payments, allowing you to select your own preferred provider, even if the associated costs exceed the council’s maximum contributions.

There may be other funding options available to you as well, depending on your situation. Let’s take a closer look at some of these options.

 

Deferring care home payments

Is the value of your capital less than £16,500? If so, you may also be eligible for a council Deferred Payment Agreement (DPA), which allows you to defer care home payment fees until the property is sold, or until 56 days after your death.

With a DPA in place, you will not be charged interest. Moreover, a DPA may allow you to rent out your home to help cover care home costs.

You should seek professional legal and financial advice before entering into such an agreement.

 

Selling your home, or renting it out

If you are facing the prospect of moving into a care home, you may not need to immediately sell your property. The ‘12 Week Property Disregard’ scheme is designed to allow people whose capital value falls at or below £26,500 — excluding their personal residence — the chance to temporarily delay selling their property, even if they have moved into a care home on a permanent basis.

Perhaps it’s useful to think of this as a cooling-off period as you settle into care home life.

The property disregard scheme is particularly beneficial if you’re not sure whether a care home will become a permanent arrangement. Maybe you simply want to try a care home for a short period of time, or require one for respite care. If you qualify, you can avoid the need to sell your home for up to 12 weeks over a 52-week period, so you could effectively leave a care home and later rejoin multiple times. (See note 6.)

Unfortunately, many people who are assessed as requiring care home support will face the prospect of selling their own home in order to make care home payments in Scotland.

However, if your spouse or partner also lives in the home, and the property is registered in both names, then it will be excluded within your financial assessment, and your spouse or partner can continue to live at home.

That’s just one of several possible scenarios in which you may be able to keep your home. Your home should not be included within the financial assessment if any of the following people continue to live in the property:

  • your husband or wife, civil partner or unmarried partner
  • a relative who is over 60 years old
  • a relative you support, under the age of 16
  • an incapacitated or disabled relative
  • a divorced or estranged partner, who is a lone parent with a dependent child

Home value may also be ignored if someone currently lives there and used to care for you. This would depend on the carer having given up his or her own home in order to move into yours.

Finally, home value should also be disregarded for temporary care home placements, even if you’re the only occupant. (See note 7.)

If you face the prospect of selling your home to pay for accommodation, you could first explore renting out your home, even temporarily, or downsizing to release equity.

 

Care home insurance

Another option to consider is applying for an Immediate Need Care Fee Annuity. After an initial lump sum is paid, this insurance provides regular tax-free income towards your care home placement.

Before taking an annuity, you should consider how long you anticipate requiring care home accommodation. Such an annuity may not prove cost-effective if you are only in a care home for a short period time.

When considering such products, it’s best to seek professional financial advice.

 

NHS-based care funding for people in hospital

You may be eligible for funding towards your care home accommodation and care if you’re currently being treated in hospital. This is known as Hospital Based Complex Clinical Care. (See note 8.) It replaces the previous system known as NHS Continuing Healthcare.

In this situation, a team of healthcare professionals would conduct an assessment designed to answer one key question: Can your care needs be properly met in any setting other than a hospital?

If the answer is yes, then you may be eligible for funding towards your care and accommodation costs, either at home or in a care home, depending on your needs, but you may also be required to make a fees contribution.

 

Charitable support or fund

If you’re worried you won’t be able to make ends meet, it may be possible to seek financial support from a charitable or benevolent fund. More information is available by contacting Turn2us.

 

Getting re-assessed for care needs

Regardless of your current circumstances, you are entitled to have your care needs and finances reassessed every six months, or possibly sooner if you experience a dramatic change of circumstances. Contact your local authority’s social care department to arrange a follow-up care and/or financial assessment. Be sure to do this as soon as possible, particularly if you’re concerned that your financial situation may soon fall into a different threshold.

For more information on care home funding in Scotland, or to access a free list of providers in your area, please contact the care home professionals at Care Sourcer for a free consultation.

 

Notes

  1. This guide is informational and should not be used as a substitute for specialist legal or financial advice. For personal advice, contact Citizens Advice Scotland on 0808 800 9060, or Age Scotland on 0800 12 44 222.
  2. “Financing A Care Home”, Which? Elderly Care, https://www.which.co.uk/elderly-care/financing-care/financing-a-care-home/381597-care-home-fees (6 April 2018)
  3. If a spouse still lives at home, this asset should be excluded from the financial assessment. Additional exclusions may apply. For more information, see the ‘Selling your home’ section of this document.
  4. More information is available on page 29 here: http://www.gov.scot/resource/doc/230561/0062673.pdf (NB: Please ignore the capital limits stated in that document, as they refer to 2008 levels and have since increased. However, the tiered income contribution remains the same.)
  5. 2017-2018 rates
  6. More information is available on page 32 here: http://www.gov.scot/resource/doc/230561/0062673.pdf
  7. More information is available on page 31 here: http://www.gov.scot/resource/doc/230561/0062673.pdf
  8. More information is available here: https://www.ageuk.org.uk/PageFiles/18187/2015%20Factsheets/Factsheet%20105s%20-%20Hospital%20based%20complex%20clinical%20care%20Sept%202015.pdf?dtrk=tru
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