Funding Options

You will either have to pay for all or part of your care or it will be paid by your local authority.

YOU PAY (Self Funding).

Most people will need to fund their own care. State provision is mainly means tested and varies according to your postcode. For those people who have assets over £23,250 (England 2010/2011) - in most cases this includes your home, there will be no financial assistance with paying for care from Social Services until such time as their assets are below this amount.

Financial help for those needing long-term care is limited as local authorities not only assess an individual's health needs, but also their ability to pay. With councils short of cash, help is often restricted to those on the lowest incomes with the most severe health needs. Many older people clients tend to be 'asset rich, cash poor'; their main asset is usually the family home and Clients who wish to continue living in their homes whilst receiving care and nursing should consider the various funding options. Private care funding schemes fall into two main categories, Equity Release and Annuity based schemes

Equity Release
Some people use the value of their home to pay for care home fees without actually selling it, or selling all of it. Through an equity release scheme you can borrow against the equity locked in your home, and then repay it when the house is sold.

Alternatively you can sell all or part of your home and then the company you sold it to will rent it back to you. We strongly recommend that you take independent professional financial advice before deciding whether to proceed with an equity release scheme.

For details of IFAs that specialise in long-term care contact IFAP at www.unbiased.co.uk Age Concern also provide a useful fact sheet on equity release which can be downloaded Age Concern Equity Release

Annuity
Annuity based schemes involve the payment of a lump sum of capital to the plan provider in return for a guaranteed income for life. This income can then be used to finance the cost of the care.

However if you are considering funding care you should seek advice from an Independent Financial Adviser.

GOVERNMENT & LOCAL AUTHORITY FUNDING

Even if you don't think you you are entitled to funding it is always worth checking.To see if you qualify for some financial support, the first port of call should be your Social Services department. They will assess your care needs and your entitlement to any funding free of charge.There are a number of possible funding options.

Direct Payments
Direct Payments are local council payments for people who have been assessed as needing help from social services, and who would like to arrange and pay for their own care and support services instead of receiving them directly from social services. If you already receive social services care your local council is obliged to offer you the option of Direct Payments in place of the service you currently receive.
If you're not receiving social services to get Direct Payments you will need to contact your local council to ask them to assess your needs.
For further information contact your local council or visit Direct Gov

Continuing Care
Continuing care is fully funded medical, nursing and personal care which can on request be provided in the individual's own home. This is funded by the Primary Care Trust. - but it is hard to get.
For further information contact NHS Direct on 0845 4647

Attendance Allowance
Attendance Allowance is a tax free, non means tested benefit for anyone aged 65+ who need help with their personal care.There are two rates. The higher weekly rate is £81.36, the lower rate is £55.45.
For further information contact the Benefit Enquiry Line on 0800 882200 or visit Direct Gov

Independent Living Fund
The Independent Living Fund is designed to help you, if you are disabled, to live independently at home rather than in residential care. Payments from the fund can be used to employ people to give personal and domestic care in your own home. The maximum amount payable is £455 per week. For further information contact Independent Living Fund on 0845 601 8815

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