How to pay for your care

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    Living at home doesn’t have to be lonely. Nowadays, home care services offer a wide range of activities to ensure you can enjoy your time in the comfort of your home! From companionship, gardening and food shopping to 24-hour live-in care, the possibilities are almost endless, meaning you can stay in your own home as long as you’d like.

    Staying in the familiar comfort of their home is a priority for many; however, this depends on individual needs. With home care, you can tailor a package specifically to you, making it a more budget-friendly option than residential care, where you pay for both your accommodation and the care services. Home care also provides a more personalised experience, as you can receive one-on-one attention from a caregiver who can focus solely on your needs.

    This can be especially beneficial for individuals with specific medical conditions that require specialised care. Additionally, home care allows you to maintain your independence and remain in your community, which can provide a sense of security and familiarity. With the proper support, many people find that they can continue living in their homes for much longer than they initially anticipated.

    Financing care options

    What is the most advantageous way to pay for care?

    State funding for home care or a care home – will the state pay?

    Many people need to comprehend the disparity between health and social care; health care is free and based on means testing.

    For instance, medical care concerns need to be addressed by a certified nurse and are free of cost, courtesy of the NHS. On the other hand, social care is meant to assist individuals with their day-to-day activities like bathing, dressing, and eating. It is means-tested, which means that the amount an individual pays for social care depends on their financial situation. Unlike health care, social care is not free and comes at an expense.

    This is why many people opt for home care services, which are provided by private companies and can be tailored to fit the individual’s needs and budget. Home care services assist with daily tasks, medication management, and even companionship, making them a popular choice for those who want to remain independent.

    What about funding from the local government?

    In stark contrast to the NHS, local authorities provide social care services such as assisting individuals with tasks like getting dressed in the morning and moving between rooms, which don’t require the intervention of a qualified nurse; this is part of the local authority’s remit, not the NHS’s.

    Your local authority is responsible for determining whether or not you are eligible for social care services. This decision should be based on something other than your financial situation. Typically, a representative from your local authority, such as a social worker, will visit to discuss your needs and decide on the next steps.

    Once someone has been identified as needing proper care, a financial evaluation should be done to decide who pays for what – this varies based on the location of care, be it in a care home, at home, or elsewhere.

    What about financing your own Home Care or Residential Care Facility?

    Once it has been established that an individual needs to cover some or all of their social care costs, either through their own means or with the help of a third party, your local authority should carry out a ‘need’ and ‘financial’ assessment.

    Subsequently, the most suitable way of financing the care fees must be decided, considering the current rates and any likely future price hikes.

    Self funding your care

    Nine different payment options for health care are at your disposal!

    Nine different methods of payment for care exist, each offering distinct benefits and drawbacks. When determining a payment method, it’s essential to consider your current situation, needs, risk profile, ability to handle financial losses, vulnerability, and aspirations.

    You may utilise one of these nine approaches or a combination of two or more!

    1. A Deferred Payment Scheme.
    2. Rental income from residential property.
    3. Equity released from residential property.
    4. Funds released through the sale of residential property/downsizing.
    5. Liquid assets/cash/income.
    6. Investments/portfolios.
    7. Pension income.
    8. Long-Term Care Insurance Product (LTCI).
    9. Third-party top-ups.

    What else should you consider?

    When choosing the best method to finance your care fees, there are various points to consider. Here are a few to take into account (not exhaustive):

    • Your desires and family priorities.
    • Do not underestimate the financial burden of your treatment or the possibility of it becoming more expensive in the future (due to changing needs or inflation).
    • In the future, you must ensure that the highest level of care is provided.
    • Regardless of care needs, it’s vital to keep expenditures under control.
    • How daring are you when it comes to risk-taking?
    • Governments enact legislation, while local authorities provide guiding principles.

    What is the expense of in-home care?

    When selecting a home care provider, it’s essential to factor in the cost. Prices vary from place to place, but typically, you should anticipate spending at least £20 – £30 per hour for in-home care.

    Home care can be a more cost-effective option than residential care. However, the rates charged by different providers and your area will impact the fees. Be mindful that costs may rise at weekends and public holidays.

    To illustrate, if you need 2 hours of home care at a rate of £25 an hour, this equates to:

    • £350 per week.
    • £1,400 per month.
    • £16,800 per year.
    Rental income to pay for care

    How much does it cost for a live-in caregiver?

    The cost of a live-in caregiver can range from £800 to £1,900 per week, depending on the level of care you require.

    How can I get access to care in the comfort of my home?

    Make the call to Hygea Homecare and get the support you need. Our free care assessment will provide you with all the details regarding the level of care required and the excellent services our professional carers can provide. Our team of experienced and compassionate caregivers is dedicated to providing the highest quality personalised care to meet your needs.

    Whether you require assistance with medication management, personal care, or simply companionship and conversation, we are here to help. We understand that every client is unique and strive to provide personalised care plans tailored to your needs and preferences.

    With Hygea Homecare, you or your loved one will receive the support and care needed to maintain independence and improve your overall quality of life.

    Call us today at 0115 648 6630 to schedule your free care assessment, or use our form and take the first step towards a brighter and more comfortable future.

    Could your local authority assist with covering the expenses of at-home care?

    If you have less than £23,250 in savings, you could qualify for your local government to chip in and help cover the expense of your care.

    The amount of your council’s contribution to your care depends on the type of care you require and how much you can afford to pay. After verifying your eligibility for care, your local council will assess your finances to decide how much you must pay. If your savings total more than £23,250, you must finance your care yourself.

    Receiving Attendance Allowance

    If you’ve hit State Pension age, need care and assistance due to an illness or disability, and have required such attention for at least half a year, you may be eligible for Attendance Allowance – which could come with two different rates, depending on your level of care.

    • Lower rate: £61.85 per week.
    • Higher rate: £92.40 per week.

    Check out Derbyshire.gov.uk for all the details about Attendance Allowance!

    What will occur when my funds are depleted?

    If you fund your care and assets below £23,250, your local authority could support at-home care or a care home. For best results, ask for an assessment a few months before this.

    Financial advice

    We strongly advise anyone requiring care to seek financial advice from a trusted and qualified financial adviser. Research shows that most people need more advice on how to fund care fees, resulting in many thousands of pounds being wasted.

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