Care Homes: What are the funding options?


Each year, around 130,000 people move into care homes in order to receive long-term assistance. Many suffer with illnesses and medical conditions and require a level of care which their families simply cannot cope with, and so a care home becomes a better option.

However, care homes can cost a lot to live in, as the average annual cost of living in a care home can reach up to £36,000. This is much more than some can afford, especially if they have been unable to save as much as they would have liked towards their retirement.

Is funding available?

Yes, there is, but not everyone is eligible for it. You should definitely consider applying for funding though, as it could lessen the financial burden by a considerable amount.

Care Homes

NHS Continuing Care

NHS Continuing Care is available to those with a long-term health condition for which they require constant care. If you are approved for NHS Continuing Care funding it could cover the entire cost of your care home fees, although it is also available for those receiving care within the home. This would help you to pay for a fulltime or live-in carer, along with any special equipment that you need to have installed within your property.

Unfortunately, the NHS hasn’t advertised this funding option very well in the past, meaning thousands have been paying their own care home fees when they could have been eligible for funding. It is possible to reclaim care home fees for continuing health care though – simply contact your local authority or a company which can help you to fill out all of the required paperwork.

Attendance Allowance

If you are mentally or physically disabled and require personal care, you could be eligible for Attendance Allowance. The exact amount of funding that you receive is entirely dependent on the level of your disability, but it could be either £51.85 or £77.45 a week.

Your claim will need to be assessed to ensure you are eligible for this funding option and, if you are approved, it would be paid into your bank account to help with the costs of care.

Local Authority Funding

If you find that you are not eligible for NHS Continuing Care funding, you may be approved for Local Authority Funding. This can provide some money towards the cost of living in a care home.

You will have to undergo a needs assessment so that your local authority can ascertain whether you need to live in a care home. Also, you cannot have savings or investments worth more than £23,250, and some local authorities take your property into account when calculating this.

As you can see, there are a number of funding options available for those that require assistance with paying for care home fees and carers within the home. Do you know of any others?