Paying for a care home
We want you to be able to live independently in your own home for as long as you can. But when this is not possible, moving into a care home could be an option for you.
There is a wide choice of homes throughout Luton which provide high-quality residential and nursing care to meet the needs of people:
- who are frail through old age
- with a physical disability
- with a learning disability
Residential and nursing homes – Luton Directory
Charges apply to residential and nursing homes and most people will be expected to pay something towards the cost from their pensions or other income, including benefits.
Residential and nursing home charges
Charges apply to residential and nursing homes. Most people will be expected to pay something towards the cost from their pensions or other income, including benefits.
You will not need to pay for your care home if:
- your stay in a nursing home is fully paid for by the NHS – this is known as continuing healthcare – NHS and is for people who have intensive medical or nursing needs
- you are in a residential or nursing home because you need after-care following a compulsory stay in a mental health hospital
- in certain circumstances you need a short stay in a nursing or residential home to recover from an illness or to prevent you from going into hospital – this is known as a short stay
Help paying for your nursing home
If you are in a nursing home, and you have been assessed as needing nursing care but you do not qualify for continuing healthcare, you may be eligible for NHS-funded healthcare – NHS.
This is where the NHS will make a payment directly to the care home to fund care from registered nurses. NHS-funded nursing care is paid at a standard rate of £209.19 a week, but this is subject to change.
How much you may need to pay
Care homes and nursing homes all have their own charges.
How much of the charge you will be expected to pay will depend on how much money you have. To work this out we need to have an in-depth look at your money by giving you a financial assessment. We will then be able to work out the exact amount you will be expected to contribute.
If you choose to have optional extras, such as outings and hairdressing from your care home, the cost of these are not included in the care home charges and so you would need to pay for these on top of your contribution towards the cost.
The government says that if you have over the threshold of £23,250 in capital (or your share of joint capital is over £23,250) you will be expected to pay in full for your own care and support - including you care home. We refer to you as a ‘self funder’.
If you are a self funder you may still be able to qualify for NHS-funded healthcare, or continuing healthcare.
Read more about how we can still offer help and support to self funders.
What money will be looked at in your financial assessment
Not all your money will form part of our calculations. Certain things will be disregarded.
Or you could follow this link to see the full care and support statutory guidance – GOV.UK.
These are counted in your assessment
This list is not exhaustive:
- any savings over £14,250 and below £23,250. We will count £1 for every £250 (or part of £250) you have over £14,250 and include it in our calculations
- the value of your home or your share of a jointly owned home (see exceptions below)
- your occupational, works or private pension (we can ignore half of it if you give at least half of it to your spouse or partner who stays at home)
- the majority of social security benefits
These are examples of what can be disregarded
The list is not exhaustive:
- your spouse or partner’s income and savings
- Disability Living Allowance – mobility component
- Personal Independence Payment – mobility component
- the first £6.95 of any Savings Credit entitlement
Including the value of your home
When you go into residential care or a nursing home on a permanent basis, the value of your property is treated as a capital asset so we will look at your share of its value.
The value of your home might not be taken into account if:
- you are in the care home for a temporary stay
- your spouse/partner lives in it
- a relative aged 60 or over lives in it
- an incapacitated relative lives in it
- a child under 16 (who is your responsibility) lives in it
- your ex-partner, who is a lone parent, lives in it with their child
There are other situations where we can ignore the value of your home, but these are on a case-by-case basis.
Money for personal expenses
If we are helping towards the cost of your care, we will make sure you are always left with some money each week to cover your personal expenses. The minimum amount is set by the government. Since 8 April 2024, the personal expenses allowance is £30.15 per week.
You will have this amount on top of any other money you may have, which was disregarded in your assessment.
Selling your home
You will not necessarily have to sell your home. Under the Care Act, people who pay towards their residential or nursing care home may be eligible for a Deferred Payment Agreement.
This is an arrangement with us which will allow you to use the value of your home to pay some of your care home fees. You can delay paying us back until you choose to sell your home, or if you prefer, when your care package ends.
This means that you will not have to sell your home during your lifetime to pay for your care home fees.
Giving away your money or assets
If you give money or assets away to family or friends, with the intention of reducing the charge for your care services, we can legally consider this to be ‘deprivation of assets’. This means we can work out your charge as if you still have the money you gave away.
If your care home stay is temporary
If you have capital or savings under £23,250 we’ll complete a means tested financial assessment to determine the amount you’ll need to contribute towards the care.
Choosing your care home if we are paying
You can choose your care home, provided that the care home offers the care you need and is willing and able to take you under our usual contract arrangements at charges within our price range.
Choosing a more expensive home and paying the extra yourself
You cannot choose a more expensive home and paying the extra yourself. But you could choose a more expensive care home if someone else such as a close relative or a charity agrees to pay the extra after your contribution and our contribution. We call this a ‘third-party top-up’ and we need to make sure that it will be paid throughout your stay at the care home. Go to care home top up payments.
Or, if you have a home to sell, we will consider paying for a more expensive care home if you agree to pay us back when the property is sold.
Further help
When we complete your financial assessment we’ll help you make sense of the financial calculations. Planning ahead or working out the best option can be daunting, so you might also want to seek independent financial advice. Go to independent financial advice.