Paying for care -what do you need to consider?
Collaborative Post
Many people reach a point in their lives where they can continue to live independently at home, but need a little more support than friends and family can provide. If you are looking for care at home, there are several important factors to look at to put appropriate support in place while managing costs effectively. Here are a few considerations.
Assessment and Eligibility
A good place to start is to contact your local council to request a care needs assessment. This should identify the level of care required and whether an individual is eligible for financial assistance.
If they are eligible, the local authority will conduct a financial means test to determine how much a person needs to contribute toward their care.
Understanding Costs
Costs differ depending on the type of care, such as personal care, companionship, or specialised care for conditions like dementia.
Costs for home care depend on the provider, location, and type of care. Hourly rates in the UK typically range from £15–£30 per hour.
Live-in care tends to be more comprehensive and expensive, typically costing £800–£1,500 per week.
It is important that you ask for fully comprehensive quotes, so as not to be surprised by unexpected costs later.
Types of Funding Available
If the individual’s assets exceed the threshold (eg £23,250 in England currently), they may need to pay for care themselves. Homeowners may consider equity release to fund care, but professional advice is crucial to assess long-term financial implications.
Local authority support is available for those with lower assets or income. It may cover part or all of the costs, and is means-tested.
If they qualify for local authority funding, the recipient can opt for direct payments to arrange care themselves, potentially giving more control.
NHS Continuing Healthcare (CHC) is fully funded care for individuals with significant healthcare needs. Assessment is required to qualify and this can be time-consuming and not easy to achieve.
Attendance Allowance is a non-means-tested benefit for those over state pension age who need help with personal care.
Personal Independence Payment (PIP) is for or individuals under state pension age with care needs due to a disability or illness.
Carer’s Allowance is available for someone providing unpaid care for at least 35 hours a week.
Legal and Contractual Considerations
It is important to read contracts carefully to understand payment terms, cancellation policies, and what services are included.
If hiring directly, check that everyone has sufficient insurance. Online insurers such as Surewise are a good place to start if not. Questions you need to consider include whether your carer comes from an agency or is self-employed, if they are covered for care tasks or domiciliary ones, and if the person receiving care needs home employment insurance.
If hiring a carer privately, you may be considered their employer and need to manage payroll, taxes, and National Insurance contributions.
And, finally, it is important to introduce the concept of home care and what can be expected to your relative and aim to build good working relationships with all concerned.
Image from Getty Images on Unsplash.