Moving into residential care can have major financial implications. If you have over £23,250 in savings you will be required to pay for the full costs of your care. If you have less than this amount in savings you may be entitled to financial help.
If you wish to move into residential care and you have sufficient income and resources to pay for this yourself, you may arrange this independently. However, if most of your assets are tied up in your home, you may still wish to approach the council for help.
The only people who do not contribute to the cost of their care at all are those who have continuing NHS health care, which is arranged and paid for by the NHS. This is different to ‘free nursing care’ which is the payment from the health service for the nursing element of a person’s care after they have been assessed by a registered nurse.
Only people who normally live in Southampton can apply for financial help from Southampton City Council. If you live in another part of the country and need financial help with the fees for a Southampton home you should contact your local authority.
Owning property
If you own a property that can be sold, its value may be taken into account when we work out how much you should pay towards your residential care. If you do not have enough income or assets to pay the full cost of residential care, then you may have to sell your home to pay the fees.
If you have been assessed as having to pay the full cost of your residential care, but you can't afford to pay the full weekly charge because part of your capital is tied up in your home, then the deferred payments scheme is designed to help you.
However, you may decide to raise the money you need in other ways, such as renting out your property to produce more income or taking out a loan or annuity. It is important you seek independent financial advice about these options.
There are certain situations when the value of someone’s home is not taken into account e.g. if your husband, wife, partner or another relative aged over 60 continues to live in your home. We also have discretion to ignore your home’s value if there is a long-term carer still living there and they have given up their home to care for you.
If the value of your house is disregarded because of such a situation and the person living in your home moves out or dies, the value of the property is then taken into account.
Top ups
If you wish to move to a home, which costs more than the amount we would normally pay, there are two ways in which the shortfall can be made up.
If you have income and assets above £23,250 you may choose to pay this yourself from your own funds, or through a deferred payment. If your income and assets are below £23,250 a relative or friend may pay the shortfall for you.
This is called a third party top up. It is important that you ensure that the person paying for it can afford to pay it for the whole length of your stay. If they are not able to do this it may mean that you are asked to move into a cheaper home. The person paying the top up will have a separate arrangement directly with the home to pay these fees.
For more detailed information please contact us.
Southampton City Council
