Paying for residential care
This page contains information about paying for residential care, such as a care home. If you're looking for information about paying for non-residential care, such as care at home or day care, please see our co-funding page.
Paying for residential care
Guidance from the Department of Health emphasises that residents should be allowed to exercise choice about their care.
These choices will include a choice to enter our residential care, as well as the choice to enter care homes where the fees are higher than assessed by us, but relatives or carers wish to pay the difference.
Residents who have more than £23,250 in savings or capital assets - this will include the proceeds from a house which they have sold - will be responsible for paying their own fees. This rate is usually reviewed each April. However, for the first 12 weeks of permanent residential care your home is disregarded for charging purposes.
Residents who have savings under £23,250 will be eligible for an assessment of their means and, where necessary, financial assistance from us to meet the fees up to an agreed level.
Following your financial assessment you will be able to retain some money for your personal use. The amount of this personal expense allowance is determined annually by the Government. This is currently £24.90 per week.
Everyone is obliged to use their income and capital to maintain themselves. A husband has the duty to maintain his wife, and a wife her husband. There is no legal duty on sons or daughters towards their parents or parents to their sons or daughters, even when they are adults.
If you own a property this may be taken into account when determining how much you have to contribute towards the cost of your accommodation. However, there are various government initiatives and schemes which may be available to you while you consider selling your property. If this applies to you, you should seek our advice in order that your circumstances can be considered. You can contact Call Derbyshire tel: 01629 533190 for more information.
Deferred payment scheme
A deferred payment helps if you have to pay the full cost of your residential care but cannot afford to pay the full weekly charge because most of your capital is tied up in your home. Under the scheme, we offer you a loan using your home as security. It's not the same as a conventional loan as we do not give you a fixed amount of money. Instead we pay an agreed part of you care home bill for as long as necessary. The money is paid back to us when the money tied up in your home is released. This can mean that you don't have to sell your home in your lifetime if you don't want to. You can find out more about deferred payments by reading our leaflet which is attached to this page.
Quality premium payments
We operate a scheme to reinforce quality standards in care homes.
Each home that we contract with, has been given the opportunity to apply to become a quality premium provider. Any home that has qualified has been asked to demonstrate that it meets standards in staff training and competence, including NVQ training, moving and handling, availability of single rooms and payment arrangements. An additional payment is then made by us to homes that have attained quality premium status.
People who need to choose a home would be advised to check if the home is a quality premium provider.
You can also choose a more expensive home if there is someone else, like a relative or friend, willing to pay the extra cost, but be sure that this arrangement is likely to last or you may have to move again later. These are commonly referred to as 'top-ups' or 'third-party payments'.
A third party is someone who agrees to pay a top-up to enable a relative or friend to go into a home that charges more for care than social services can support. The top-up is in addition to the amount that you are asked to pay from your own income and savings.
The amount of the top-up is agreed at the time you go into the home, but can be reviewed by the home as long as they give notice.
You may be self-funding your own care because your income and savings are too high to get help from us, or because you have arranged care in a home by yourself.
If you are living in a residential care home you will have to pay the whole cost.
You can claim Attendance Allowance or Disability Living Allowance as long as you are responsible for the full cost of your care. This applies even if you are getting some help from adult care while you wait to sell your house.
You are entitled to Income Support if your savings are under £16,000 and you are under pension age providing your income is under the thresholds set by the Government.
Pension Credit can be paid if you are pension age and your weekly income is under the levels set by Government. There is no ceiling on the amount of capital you may have.
Savings Credit can be paid if you are over 65 and you meet the criteria set by the Government.
You may also like to find out more about direct payments.
The following documents are in Portable Document Format (PDF). You can download software to view PDF documents for free from the Adobe website (opens in a new window)
The following document is in Word format. You can download software to view Word documents for free from the Word viewer page (opens in a new window) of the Microsoft website.