Understanding how dementia care is funded in England and what support may be available to you.
If your income and savings are above the local authority threshold, you will need to pay for your own care. In England, the means test threshold for local authority funding is currently £23,250 in total capital (including property, savings and investments).
If you are above this threshold, you are considered a self-funder and must pay the full cost of your care home place. Typical costs vary by region and care type:
As a self-funder, you are entitled to negotiate directly with care homes. Always ask what is included in the weekly fee and what incurs additional charges.
If your capital is below £23,250, your local authority will conduct a needs assessment and a financial assessment. If you meet the eligibility criteria, the council will contribute towards your care costs.
The local authority will pay a fixed amount to the care home. If the home's fees are higher than this amount, you or your family will need to pay the difference, known as a "top-up".
NHS Continuing Healthcare is a package of care that is funded entirely by the NHS for individuals with a "primary health need". If your relative qualifies for CHC, they will not have to pay for their care.
The CHC assessment process involves:
CHC is often under-claimed. If your relative has complex dementia with significant health needs, it is worth requesting an assessment.
If you own your home, a Deferred Payment Agreement (DPA) allows you to use the value of your property to help fund your care without being forced to sell it during your lifetime. Under a DPA:
Not all councils offer DPAs to self-funders, so check with your local authority.
For further guidance on funding care, the following organisations provide free, independent advice:
In England, the upper capital threshold is £23,250. Above this you are expected to self-fund. Below £14,250 you will not be asked to contribute from your capital, and between the two levels a tariff contribution applies.
CHC is a package of care funded entirely by the NHS for people with a primary health need. If eligible, the individual does not pay for their care. CHC is often under-claimed, so it is worth requesting an assessment even if you are not sure you qualify.
Yes, a Deferred Payment Agreement lets you use your property's value to fund care without selling during your lifetime. The local authority pays the fees and recovers them from your estate later. Not all councils offer this to self-funders, so check with your local authority.