Who will pay the cost of your care home?

Unlike the NHS, social care is not free, and you may be expected to contribute towards the cost of the care you receive in a residential or nursing home. Most people have to pay something towards the cost of their care.

If you are considering entering a residential or nursing home, you should first ask us for a free needs assessment to ensure that it is appropriate for you.

A free financial assessment will follow to determine if you need to contribute to the cost of your care home.

Savings or other capital assets over £23,250

If you have savings or other capital assets over £23,250, then you would be expected to pay for the full cost of your care home.

Capital assets could include:

• other properties you own (not including the home you live in)
• shares
• other relevant assets.

You will be expected to enter into a private arrangement with your chosen residential or nursing home if:

• you are able to arrange your own care
• or you have given somebody else legal power to represent you.

Learn more about buying your own care services and find independent financial advice.

Savings or other capital assets under £23,250

If you have less than £23,250, then we will complete a free financial assessment to determine how much you can afford to contribute towards the cost of your care.

How we calculate your contribution

In simple terms, the calculation is savings and assets + income – allowance = your assessed contribution.

We calculate our financial assessment by looking at your:

• income
• savings
• capital assets
• personal expenses allowance.

To have the financial assessment, you'll need to tell us about your finances and income. You can complete our online financial assessment form. If you are unable to fill out our online form or do not have anyone who can assist you with it, please get in touch and we can assess you over the telephone, or face-to-face.  

When we receive your form and supporting documents, we will write to tell you the outcome of your assessment.

View our policy for contributions in adult social care (.pdf format, 607 KB).

Providing your financial information

You do not have to disclose your financial circumstances if you do not want to. However, if that is your choice, we will assume that you are prepared to pay the full cost of your care.

Income

We will include almost all benefits and other income such as occupational pensions, annuities and income from property rental.

However, we may disregard or partly disregard certain types of income. For example, we disregard the mobility component of disability living allowance and personal independence payments from all assessments.

Tariff income from savings

If you have capital between £14,250 and £23,250, we will assess you as being able to contribute £1 per week for every £250 you have above £14,250. We call this tariff income.

Example

If you have £14,550, you will be treated as having an extra £2 per week of tariff income. 

Savings

We take into account almost all types of savings, including:

• current and saving accounts
• individual savings accounts (ISAs)
• shares
• investment bonds
• National Savings.

Capital assets

The property you own

If you own your home, we will include it in your financial assessment. However, we won't include it if one of the following people also lives in the home and will continue to live there when you have moved into a care home:

• a husband, wife or civil partner
• a close relative over the age of 60
• a dependent child
• a relative who is disabled or incapacitated.

12 week property disregards

If we take your home into account, we will ignore its value for the first 12 weeks, starting from the date you first became a permanent resident.

This is also called a 12 week property disregard. This will give you time to decide what to do with your former home.

You will still be expected to contribute towards your care from your income and other assets during this time. You will also have to continue to maintain the property and meet any ongoing costs that arise.

Personal expenses allowance

The personal expenses allowance is an amount set by the Department of Health and is the minimum amount you must be left with if you are in a permanent care home placement. The Department of Health usually increases this amount annually from April.

Suppose you have responsibility for dependents not living in the same care home or who have continuing expenses unrelated to their care home costs. In that case, we may be able to increase your personal expenses.

Contact the Financial Assessment Team for more information.

Check you are receiving the benefits you are entitled to

If you want to make sure you are receiving all the benefits you are entitled to, contact:

• Department of Work and Pensions (if you are over 60)
• Job Centre Plus (if you are under 60)
• Age UK
• Citizens Advice.

Use the benefits calculator on GOV.UK.

We can check your benefits as part of your financial assessment.

Paying the full cost of your care home

You will need to pay the full cost of your care home if you do not qualify for help with the cost. However, there are sources of support if you are funding care yourself.

The Deferred Payments Scheme

The scheme is designed to help you if:

• you have been assessed as having to pay the full cost of your residential care
• but cannot afford to pay the full weekly charge because your capital is tied up in your home.

Effectively, the scheme offers you a loan from Oxfordshire County Council using your home as security.

How the scheme works

We will financially assess your ability to pay a weekly contribution towards your care from your income and other savings. The difference between your ‘assessed weekly contribution’ and the actual cost of your care home is the ‘deferred payment’.

The deferred payment builds up as a debt repaid when your house is sold. However, if you decide not to sell your property during your lifetime, the debt must be repaid to the council from your estate after your death.

We will:

• invoice you every month for this contribution.
• arrange payment of the full cost of your care with the care home.

You will not need to make payments directly to the care home other than for personal items or services.

The deferred payment agreement

If you decide to use the Deferred Payments Scheme, you must sign a deferred payment agreement. This is a legal agreement with us. We then place a ‘legal charge’ on your property to safeguard the loan.

How much the scheme costs

There is an administration charge of £650 to cover the cost of setting up and maintaining the agreement. Other charges, such as legal costs and land registry fees, may also apply.

You will be charged interest on the loan the same way as if you borrowed from a bank. This rate is set by the Department of Health and is reviewed regularly. 

Learn more about the scheme

Contact the Financial Assessment Team for more information.

Your benefits

If you fund your own care, you will still be entitled to your benefits. You can use the money to help pay fees.

Make sure you are claiming all the benefits that you are entitled to.

Paying the calculated contribution

If you are eligible for funding support, we will calculate your personal budget. Part of this calculation is the amount you will pay towards the cost.

We ensure that your personal budget is enough to cover the cost of at least one suitable care home.

How your benefits are affected

If we are paying for your care in a care home, you may not be entitled to receive all of your benefits. Any benefits you do continue to receive will
be included in the council’s financial assessment of how much you are expected to contribute to your care's cost.

Contact the Department of Work and Pensions on 0345 606 0265 to learn how your benefits may be affected if you go into a care home. 

Choosing a care home

If the home you choose costs more than the option offered by the council, you will have to find someone who can pay the difference, or you may have to move to a less expensive home.

Topping up a personal budget

A top-up is the difference between:

1. the cost of the care that the council has identified will meet your eligible needs
2. your chosen accommodation.

An example top-up

The council assesses that a care home costing £473 per week can meet your eligible needs.

You choose a care home that costs £500 per week.

Your top-up payment will be £27 per week.

Paying the top-up

You can arrange for a third party such as a relative or charity to pay a top-up to cover the cost of a more expensive home.

You can only pay the top-up yourself if you:

• are subject to a 12-week property disregard
• have a deferred payment agreement in place
• are receiving accommodation provided under S117 for mental health aftercare.

Top-up agreement

We will confirm your top-up arrangement with an agreement. The document includes information about what will happen if:

• we change any fees
• you don't pay the fees.

Arranging care services yourself

You should get independent financial advice to help you make the right decision about funding your care.

Learn more about finding a care home.

NHS funding

NHS continuing healthcare

You are entitled to NHS continuing healthcare if your care needs are primarily health-based. We will refer you to the NHS during your assessment if you are likely to be eligible. Learn more about NHS continuing healthcare on the Age UK website.

NHS-funded nursing care

If you don't qualify for NHS continuing healthcare, you may be eligible for NHS-funded nursing care. If you have been assessed as needing care from a registered nurse, the NHS contributes to the cost directly to your nursing home.