Dealing with the financial aspects of at-home or live-in care can be one of the most challenging aspects of arranging care for yourself or a loved one.
It often comes as a shock that Local Authorities provide limited financial assistance, leaving individuals to bear the brunt of care costs. Moreover, the total expenses related to care services are frequently higher than initially estimated.
For at-home care, factors such as income, earnings, benefits, pensions, and savings impact the cost you need to address. In England, home care has two capital thresholds: an upper limit of £23,250, beyond which you need to self-fund your care, and a lower limit of £14,500, under which the local authority finances your care. Those falling between these limits may be eligible for partial funding.
Live-in care expenses start at roughly £800 per week but can escalate to £1,600 per week for those with more significant care requirements.
Live-in Care State Benefits
Attendance Allowance is a tax-exempt benefit intended for individuals aged 65 or older with a physical and/or mental disability that necessitates daily care assistance. Two rates are available, determined by the disability's severity. Generally, six months of care needs is required for eligibility.
For more information, visit https://www.gov.uk/ and search for "Attendance Allowance."
Disability Living Allowance
Disability Living Allowance (DLA) is a tax-exempt benefit for people under 65 who need help with personal care and/or mobility due to a physical and/or mental disability. Eligibility requires the disability to be severe enough to warrant daily care assistance.
DLA is accessible regardless of employment status and is generally not influenced by existing savings or income. The payment rate varies based on your disability's impact.
For more information, visit https://www.gov.uk/ and search for "Disability Living Allowance (DLA)."
Pension Credit is offered in two variations:
- a. Guarantee Credit: For those who meet the minimum qualifying age, this credit ensures a minimum income by augmenting your weekly earnings.
- b. Savings Credit: Aimed at individuals aged 65 or older who have made arrangements for their retirement, such as savings or a secondary pension.
Both Pension Credit types may increase if you are disabled, have caregiving responsibilities, or encounter specific housing expenses, like mortgage interest payments. For more information, visit https://www.gov.uk/ and search for "Pension Credit."