Navigating Care Home Fees

This article is for guidance only and full advice should besought in respect of your specific situation.

The financial aspect of long-term care can be a significant concern for individuals and their families. Whether you're exploring options for yourself or a loved one considering a move to a supportive environment like Foxburrow Grange in Colchester, it's essential to gain an understanding into the intricacies of care home fees, and available funding avenues and support, so as to be able to make informed decisions. Also be aware that care fees for a residential care home can vary widely across different care homes and care providers.

Each case is individual - always seek appropriate advice – and become informed about the specific entitlements and information relevant to your loved one.

An experienced financial care solutions advisor can help you:

• Understand Your Rights: Learn about your entitlements and potential government funding.
• Explore Funding Options: Discover various ways to finance care costs, including personal funds,
  government support, and financial products.
• Make Informed Decisions: Receive tailored recommendations based on your specific circumstances.

The Society of Later Life Advisers is a good place to start : https://societyoflaterlifeadvisers.co.uk/

Understanding the Basics of Paying for Care

When starting your journey to understand care costs, it's helpful to consider the fundamentals. Care can be delivered in various settings. The ultimate cost is influenced by the specific type of care needed, the geographical location, and the individual's financial circumstances.

The UK government offers certain benefits and allowances for those requiring care, such as Personal Independence Payment (PIP), Disability Living Allowance (DLA), and NHS-Funded Nursing Care (FNC). However, eligibility criteria apply, and these benefits may not fully cover the total cost of care.

Before making any decisions, a thorough understanding of the potential costs is crucial; exploring how the local authority can contribute to care costs is also a vital step. They will conduct a "means test" to assess your financial situation and determine your potential contribution. While this assessment might seem daunting, it's a key process in securing the right funding for your care needs. You can read about the Financial Assessment on the Essex County Council website.

Decoding Care Home Fees at Foxburrow Grange

Care home fees often constitute a significant portion of overall care expenses. These fees typically cover accommodation, personal care assistance, and, if necessary, nursing care.

Upon moving into a care home like Foxburrow Grange, the local authority will likely conduct a financial assessment, or 'means test'. This assessment will review your income, savings, and property ownership to determine how much you can contribute towards your care home fees. Generally, if your net worth exceeds the upper capital limit (£23,250 in England), you will be expected to cover the full cost of your care.

It's important to be aware that certain assets are not always included in this financial assessment. For instance, only half of the balance in a joint savings account is usually considered. Additionally, your home is typically not assessed if your spouse, civil partner, a close relative over 60, or a disabled relative continues to live there.

If affording care home payments is a concern, the local council may be able to provide financial assistance. However, if you choose a care home which might have fees exceeding what the council deems necessary for your assessed needs, you may be asked to pay a 'top-up fee' to cover the difference.

Exploring Your Funding Options for Foxburrow Grange or Care at Home

Let’s look at various ways you can fund your care at Foxburrow Grange:

• Insurance for Care Home Fees in the UK:
  Long-term care insurance policies can offer financial security by providing a pre-agreed regular income if you can no longer perform certain daily living activities. Another option is an 'Immediate Needs Annuity' (or care fees annuity), which involves a one-time lump sum payment in exchange for a guaranteed lifetime income to cover care costs. However, these insurance options are not universal solutions, and their cost and suitability depend on individual factors like age, health, and required care level. Seeking advicefrom a specialist financial advisor is crucial when considering insurance for care home fees.
  
  
• Rental Income:
  If you own your home and move into a care home like Foxburrow Grange, renting out your property could provide a valuable income stream to help with fees, especially if you wish to retain the property or believe a quick sale wouldn't realise its full value. Remember to factor in potential vacant periods and ongoing maintenance costs, and be aware that rental income is taxable, and capital gains tax may apply upon eventual sale.
  
  
• Equity Release:
  For homeowners, equity release can be a way to access someof the value tied up in your property while still living in it. The funds released can be used for any purpose, including funding care. However, equity release schemes come with associated risks, so it's essential to weigh these against the benefits and seek specialist advice before proceeding with options like lifetime mortgages or home reversion plans.
  
  
• Income from Investments:
  Generating income from your investments can be another effective way to contribute to care costs. This might involve restructuring your assets to produce a steady income stream. For example, if moving to a care home, you could consider selling your property and investing the proceeds. To mitigate potential market risks, it's often advisable to consider low to medium-risk investments and seek professional financial advice to choose suitable long-term options.
  
  
• Savings:
  Using your savings offers direct access to funds withoutfees or charges and carries low investment risk. While any amount of savings can be used for care, it's wise to consider other funding avenues if you anticipate your savings might run out.
  
  
• Deferred Payment Scheme:
  Essex County Council provide a deferred payment scheme, where they pay towards your care costs (up to a certain limit) for life. This involves securing a loan against your property at a fixed interest rate, with repayment (including interest and administration charges) due upon the sale of your home after your death. Eligibility criteria apply, including owning your home and having limited capital excluding your property. Renting out your home while in care can help offset the council's bill under this scheme.
  
  
• Pension and Income Drawdown:
  For many individuals entering care homes, their pension often becomes a primary source of funding. Utilising pension income or moving pension savings into a drawdown product can be a viable option, particularly if you are over 55 and have other assets to comfortably fund your retirement without relying on your pension income.
  
  
• NHS Continuing Healthcare Funding:
  If your primary care need is health-related, NHS Continuing Healthcare (CHC) funding could cover the full cost of your care. However, eligibility requirements are complex and subject to change. If you've been discharged from hospital into Foxburrow Grange, you will be offered an assessment to determine your eligibility for NHS Funded Nursing Care or NHS Continuing Health Care.
  
  
• Third Party Top-Up:
  If you are eligible for local authority support but choose a more expensive care home, a third party (such as a relative, friend, or charity – not yourself, except in specific circumstances like a deferred payment agreement or when your property's value isn't considered) can pay the difference as a 'top-up fee'.
  
  
• Personal Health Budgets:
  In Colchester, NHS Personal Health Budgets (PHBs) are a way to use NHS funding to support someone's health and wellbeing needs, allowing them to have more choice and control over their care. PHBs offer flexibility in how NHS funding is used to meet assessed health and wellbeing needs. The Suffolk and North East Essex Integrated Care Board (ICB) oversees PHB's in Colchester. Individuals can also speak to their local NHS team or a healthcare professional they regularly liaise with for more information and assistance with the application process. See also the NHS England Personal Health Budgets page for information.
  
  
• Charitable Grants:
  Numerous charitable organisations provide financial assistance to individuals with chronic illnesses or disabilities. It's essential to check eligibility criteria and have the necessary supporting documentation before applying. While most charities accept individual applications, family members applying on your behalf may also be considered. Various resources are available online - such as the Royal College of Nursing 'Charitable funding and other sources of help' web page, which provides lists of relevant registered charities.
  
  
• Selling Personal Belongings:
  Selling personal assets, including your home or other valuable items, can contribute to care costs. However, it's crucial to carefully consider the repercussions, especially regarding your home, and consult a financial advisor if you're unsure whether this is the right option for your situation.
  
  
• Veterans’ Funding for Care Homes:
  Particularly of relevance to the large garrison of Colchester, several prominent military charities offer crucial financial and practical support for veterans and their families seeking care home services. Key organizations include The Royal British Legion (RBL), the Army Benevolent Fund, the RAF Benevolent Fund, and SSAFA, all dedicated to assisting with care home costs, providing access to their facilities, and guiding beneficiaries to other vital support services.

These charities each have specific areas of focus. The RBL, for instance, offers guidance and specialist dementia care in their own residential homes, alongside independent living support. The Army Benevolent Fund aids soldiers, former soldiers, and their families across various needs, including elderly care. Similarly, the RAF Benevolent Fund provides grants and financial assistance to RAF personnel and their families, while SSAFA offers comprehensive welfare services, social care, and advice for all armed forces personnel, veterans, and their families. Additional charities like The Veterans' Foundation, BLESMA, Cobseo, and Erskine Veterans Charity further contribute to this network of support.

When seeking assistance, it's crucial to consider each charity's specific eligibility criteria, application process, and the type of financial or service-based support they offer. Some charities may specialise in
particular needs, such as dementia care or support for limb loss, ensuring targeted and effective help for veterans and their families.

Financial Assessment and Funding for Care Homes: Key Considerations

The 'means test' is central to understanding your care funding options. If the assessment shows you cannot afford to pay, the local authority can contribute. A personal budget is usually put in place to plan your care and support.

If your assets exceed the threshold, you will be considered a 'self-funder' and responsible for the full cost of your chosen care home, such as Foxburrow Grange. However, self-funders may still be eligible for benefits like Attendance Allowance, DLA, or PIP, which are not means-tested and based on care needs.

Remember to explore potential NHS funding avenues, such as NHS Continuing Healthcare or NHS-funded nursing care, which can contribute towards nursing home costs if you meet the strict eligibility criteria.

• Home Care Vs Residential Care
  The choice between receiving care at home and moving into a residential setting like Foxburrow Grange can be complex. Home care allows you to remain in familiar surroundings without accommodation fees, and it can often be less expensive, depending on the required support and potential council funding.
  
  Residential care, on the other hand, offers 24-hour support and social opportunities, which can be beneficial for those with extensive care needs. Ultimately, the decision often comes down to personal preference and the level of care required. NHS funding may be applicable to both home and residential care, but eligibility for NHS Continuing Healthcare can be complex.
  
  
• Disability Benefits and Attendance Allowance in CareFunding
  Disability benefits like PIP and DLA can provide crucial financial support for individuals with extra care or mobility needs due to a disability. Attendance Allowance is another non-means-tested benefit for older people with disabilities. While these benefits can be significant, they may not cover the entire cost of care, necessitating the exploration of additional funding options.
  
  
• Local Council and NHS Funding for Care
  Navigating local council and NHS funding options is essential, as they can provide substantial financial assistance. The local authority can contribute to both home care and care home costs based on your financial assessment, potentially providing a personal budget. NHS funding, such as Continuing Healthcare or NHS-funded nursing care, can also help if strict eligibility criteria are met. Remember that you may still need to contribute towards your care costs, making careful planning crucial.
  
  
• Social Care and State Pension in Care Costs
  Social care, covering non-medical support, can be provided at home or in a care home, with potential contributions from the local council. The State Pension provides a regular income that can be used towards care costs, although it may not cover the full amount, highlighting the importance of future planning.
  
  
• Financial Support for Those with Disabilities
  Individuals with disabilities may be eligible for funding from the Department of Work and Pensions (DWP) and local social services departments for personal care and mobility aids. Charitable organisations also offer specialised advice and assistance.
  
  
• Tax Relief & Benefits
  Certain tax reliefs and benefits, such as Attendance Allowance and Carer’s Allowance, may help with care expenses. Contacting your local HMRC office can provide information on available assistance.
  
  
• Funding Options for Those Under 65 Years Old
  If you are under 65, additional funding options include PIP, Adult Social Care provided by local governments, Attendance Allowance (for those over 65), DLA, and Carer’s Allowance. It's vital to investigate all available alternatives.
  
  

Taking the Next Step for Your Loved One at Foxburrow Grange

If you believe your loved one at Foxburrow Grange in Colchester might be eligible for either NHS-Funded Nursing Care or NHS Continuing Healthcare, the initial step is usually to request an NHS CHC assessment from the NHS Suffolk and North East Essex Integrated Care Board.

The dedicated and experienced team at Foxburrow Grange is familiar with these funding processes and can offer guidance and support as you navigate the initial stages. Please do not hesitate to discuss these options with us.

Understanding NHS funding options is a vital step in ensuring your loved one receives the specialist
care they need in a comfortable and supportive environment like Foxburrow Grange, Colchester, with appropriate financial support in place.