Paying for residential or nursing care
Many people need help paying for residential or nursing care. This page explains how we work out how much financial help we can give you.
- What are the fees for?
- How much help can we give you?
- Rules about capital
- Rules about personal allowance
- How do we work out how much we will pay for your care?
- What are the rules about paying for nursing care?
- What happens if you own your own home?
- Short stay or respite care
- Permanent stays
- The financial assessment form
- How will moving affect your welfare benefits?
- How will moving affect your spouse’s benefits?
- What services are you paying for?
- What happens if you choose a more expensive home?
- How will you pay the fees?
A care home’s fees cover three main areas:
- basic housing costs such as rent, utilities (gas, electricity and water) and making sure that the building is accessible.
- living costs such as food, television and social activities.
- care costs - personal social care (such as helping people bath) and basic health care.
Fees for nursing homes are usually higher because they include the cost of nursing care. The NHS will pay for nursing costs, if a nurse or doctor agrees that you need this care.
How much help can we give you?
This depends on your capital (things you own) and your income (money you get regularly). Generally, if you have £25,500 capital or more, then you will need to have a contract with the care home and pay the home directly.
- If you have more than £22,250 capital, the law says that you can afford to pay all the residential and nursing home fees yourself (except the cost of any nursing care that you need).
- If you have £25,500 capital or more, then we would prefer you to agree a contract with the care home and pay the home directly.
- If you have less than £25,500 capital, then we can arrange that contract and pay the home for you. You will pay the full amount to us, until your capital falls below £22,250.
- If your capital increases to over £25,500 while you are living in the care home (perhaps because you have sold your home), then we may ask you to take on the contract with the care home
Rules about personal allowance
Each week you will get a small personal allowance of at least £21.15, which comes from your welfare benefits. This is money you can spend as you want, for example on toiletries, cigarettes and stamps. You need to use most of the rest of your income to pay the home’s fees.
How do we work out how much we will pay for your care?
Once we know your tariff income, we add that to your actual income from benefits and pensions. Of that total income, you keep your personal allowance and use the rest to pay for your residential care. We will make up the difference between the cost of the care and the amount that you pay.
What are the rules about paying for nursing care?
If you are moving to a nursing home and you need nursing care, the NHS will pay for the nursing care part of the home’s fees. A nurse will assess (work out) what level of nursing care you need, so that they can decide how much the NHS will pay.
What happens if you own your own home?
If you own your home, we usually count its value as capital that you will have in the future. If you are moving into a care home permanently, we will ask you to sign a contract with us, agreeing that you will pay us back once your home has been sold.
Your solicitor can arrange this. You may want to talk to an independent advisor before signing the contract.
If your spouse or partner (of any age), or another relative who is over 60 or who is ‘incapacitated’ is still living in your home, then we will not count it as capital and you will not need to sell it.
Short stay or respite care
If you are moving to a residential or nursing home for a short while, there is a set weekly charge depending on your age.
- If you are aged between 18 and 24 years old, there is a set charge of £52.65
- If you are aged beween 25 and 60 years old, there is a set charge of £65.20
- If you are aged over 60 years old, there is a set charge of £102.90.
If you stay for longer than six continuous weeks, we will assess your finances - your charges may change.
The first six weeks of a permanent stay in a residential or nursing home are counted as a ‘trial period’ and the charges are the same as for short stay (see above).
This should leave you with the money the government says that you need for rent, heating costs etc., so you can keep your home going – just in case the residential or nursing home doesn’t work out.
We’ll ask you to fill in a financial assessment form during this ‘trial period’ and after the first six weeks, your charges will probably change, according to your financial assessment.
The financial assessment form
To help us assess your finances, we will give you a form to fill in, telling us about your income and savings. If you need help filling in the form, you can ask your social worker or finance officer. Once we have worked out how much you will have to pay towards the home's fees, we will write to you with this information.
How will moving affect your welfare benefits?
If you are receiving welfare benefits, you should contact the Pension Service (if you are 60 years old or more) or Jobcentre Plus (if you are under 60 years old) before moving to a care home.
If you have over £16,000 capital, you may still get some benefits such as Disability Living Allowance (care) or Attendance Allowance and Pension Credit.
As benefits are very complex, you may want to ask for more expert advice. You should contact our Welfare Rights Advice Line (details at the end of the leaflet).
How will moving affect your spouse’s benefits?
If you get any benefits as a couple, then your partner may need to claim these him or herself, once you have moved. Your partner may also be able to claim other benefits once you have moved. You should let the Pension Service or Jobcentre Plus know and they should send your partner a form to fill in. You should also contact the Welfare Rights Advice Line for further information.
What services are you paying for?
The home’s fees should cover all the normal things you need. The home should not ask you for any more money, except for extra things such as your own newspaper, cigarettes or having your hair done. This should come from your personal allowance. If the home asks you or your relative for more money, then you should refuse and let us know.
What happens if you choose a more expensive home?
Each year, we set maximum amounts that we will pay towards the cost of residential or nursing home care. These depend of the type of home and the type of care that you need.
If you choose a home that is more expensive than the maximum we will pay, then you will need to make up the difference, from the first day that you move in. You may have a relative who can help with the extra costs, or you could contact Salford Council for Voluntary Service (CVS), which has a list of charities that may help you.
You must contact us before you move into the home and we will make a written agreement with the person or charity paying the extra money.
If you are staying in a home for longer than six weeks and we are helping to pay the home's fees, we will normally pay all the home's fees. We will then ask you to pay your fees to us. You will receive a bill from us after your first six week stay, telling you how much you owe.
After that, we will send you a bill once a year, telling you how much you owe us each calendar month. If another person or organisation is also helping to pay the fees, we will also send them a bill.
There are a number of different ways that you can pay us, direct debit for example. You can ask your social worker or finance officer to explain these to you.
This page was last updated on 28 March 2008
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