In the UK, funding for adult social care can come from various sources, including local authority support, the National Health Service (NHS), and self-funding. Each funding option has its criteria, limitations, and implications for individuals requiring care:

Local Authority Support:

The local authority provides the bulk of support for those requiring social care. These can take several forms:

Council-Assisted Funding: Individuals meeting the eligibility criteria may receive financial support or services arranged or directly provided by the local council. This can include home care, day care, or residential care, though the amount of support can vary based on individual needs and financial circumstances.

Local authorities in the UK provide means-tested care services. They assess an individual’s financial situation to determine the level of support they are eligible to receive. The assessment considers income, savings, assets, and property.

Deferred Payment Agreements: For those who have assets tied up in their property, local authorities offer deferred payment agreements, where they can pay for care costs later, typically recouping the money from the individual’s estate after their passing.

NHS Funding:

Where more intensive medical care is required, there are circumstances in which the NHS will cover the cost of care.

Continuing Healthcare (CHC): The NHS provides fully-funded care for individuals whose primary need is a health need. CHC covers the full cost of care, including residential care, if the individual is eligible. Eligibility is determined through an assessment process that considers the complexity, intensity, and unpredictability of healthcare needs.

NHS Funded Nursing Care (FNC): For individuals in care homes who require nursing care, the NHS provides a contribution towards the nursing costs. This is paid directly to the care home.

Self-Funding:

Where none of the aforementioned options are available, care must be self-funded. People can also choose to self-fund where they want more choice regarding their care.

Attendance Allowance: This is a non-means-tested benefit provided by the government to help with personal care costs for those over State Pension age who need assistance due to a disability or illness.

Private Payment: Individuals with sufficient financial resources cover the cost of their care independently. They can choose their preferred care provider and have more control over the type and quality of care received.

Long-Term Care Insurance: Some individuals opt for long-term care insurance, which helps cover care costs. However, it’s essential to assess policy terms, coverage, and limitations carefully.

Each funding option has its advantages and limitations:

NHS funding through Continuing Healthcare (CHC) offers fully-funded care for eligible individuals but can be challenging to qualify for due to strict qualifying criteria.

Local authority support comes with financial eligibility requirements, potentially leading to individuals not only having to part-fund their care but being limited in their available choices of care provider.

Self-funding provides more independence and flexibility in choosing care options, but it can be severely financially demanding and may rapidly deplete an individual’s savings or assets.

The choice of funding depends on an individual’s financial situation, care needs, and the type of care preferred. Seeking professional advice is crucial to understand the implications of each funding option and make informed decisions tailored to the individual’s circumstances.

In the next post we will look at the legislation and regulations surrounding care fees in the UK, before looking at how you can plan ahead to protect yourself from the impact of such charges.

There are many ways in which you can protect your assets against the cost of future care fees, and our experts are able to look at your individual circumstances and identify tailored solutions to do just this.