Self-Funding
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:
- Residential dementia care: typically £800–£1,200 per week
- Nursing dementia care: typically £1,000–£1,600 per week
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.
Local Authority Support
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.
- If your capital is below £14,250, you will not be asked to pay anything from your capital. You will still be expected to contribute from your income (including Pension Credit, Attendance Allowance and any other benefits).
- If your capital is between £14,250 and £23,250, you will be asked to pay a tariff contribution from your capital (currently £1 per week for every £250 of capital above £14,250) in addition to your income contribution.
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 (CHC)
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:
- Initial screening — A checklist completed by a health or social care professional to identify whether a full assessment is needed.
- Full assessment — An assessment using the Decision Support Tool, which evaluates needs across 12 care domains (including behaviour, cognition, mobility and nutrition).
- Eligibility decision — If the individual has a primary health need, they will be eligible for fully funded care.
CHC is often under-claimed. If your relative has complex dementia with significant health needs, it is worth requesting an assessment. You can also appeal if the initial decision is that they are not eligible.
Deferred Payment Agreements
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:
- The local authority pays your care fees on your behalf.
- A legal charge is placed on your property.
- The fees are repaid from your estate after you die, or when the property is sold.
- DPAs are available to anyone with a house and savings above the capital threshold, but below the point where they can fully self-fund.
Not all councils offer DPAs to self-funders, so check with your local authority.
Useful Resources
For further guidance on funding care, the following organisations provide free, independent advice: