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If you move into a care home, you will normally have to pay towards the cost of this.  The amount depends on your income (how much money you have coming in each week) and your assets (your savings, investments and the value of any property you own). We will help you to calculate this, and usually the residential home staff will help with this too.

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What is the difference between residential care and nursing care homes?

The main difference is that a nursing home always has a qualified nurse on-site to provide medical care. There are slightly different rules on paying for residential care and paying for nursing care.

Everyone who needs nursing care is entitled to a contribution from the NHS towards their nursing costs. More information is on the NHS website. Nursing homes usually charge more than residential homes because of the specialist care available, and you may still have to pay all or part of your accommodation costs at the home.

How much will I have to pay?

We apply a means test to make sure you only pay what you can afford for nursing or residential care homes: How much you have to pay will depend on how much money you have, and we calculate this by carrying out a ‘financial assessment’ with you. When we talk to you about your needs during your assessment, we will explain more about the financial assessment process. Regulations about how much we should charge are set by the government in the Care Act 2014 and the Care and Support (Charging and Assessment of Resources) Regulations 2014.

If you have savings or investments that are over £23,250 you will have to pay the full cost of your stay in the care home.

If you have savings or investments between £14,250 and £23,250, you will have to make a contribution towards the cost of your stay in your care home, and the Council will pay the rest. You will also need to pay part of your weekly income and benefits to the care home.

If you have savings or investments below £14,250, you will need to pay part of your weekly income and benefits to the care home and the Council will pay the rest.

The weekly income and benefits we look at to calculate what you will pay include:

• Any pensions or ages you receive
• Pension Credit
• Income Support
• Any extra social security benefits you may be entitled to claim for your stay in the home.

Will I be left with any money for myself?

Yes, everyone keeps a Personal Expenses Allowance of £28.25 per week.

There are other benefits and allowances that are not considered as income in the financial assessment, and some capital assets that are disregarded (e.g. the surrender value of any life insurance or annuity). This will be explored and explained in your financial assessment.

Will I have to sell my home?

If you own your home, the value of it will not be taken into account for the first 12 weeks of you living in the care home. This is called the ‘12-week property disregard’.

After this time, the value of your home may be included in your financial assessment. There are some situations where your home will not be taken into account. This is when one of the following people also lives in the property, and will continue to live there after the person has moved into a care home:

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

Some other conditions apply which we take into account when we are deciding if the value of your home should be included in your financial assessment, which can be explored and explained during the financial assessment.

If your home is included in your financial assessment and you don’t want to sell it, there are other options that may be available to you. For example, you may qualify for a deferred payment. This is an arrangement with the council that will enable you to defer paying for the cost of your care home against the value of your home until you choose to sell your home, or until after your death.

What if I am in a care home temporarily?

This is sometimes called a ‘short-term placement’. Charges can apply to temporary stays in a care home, and the calculation depends on your circumstances.  Please speak to staff for more information.

What if I choose a more expensive care home?

If you choose a home that costs more than the personal budget that the council has identified to meet your assessed needs, a third party can pay the difference. This is sometimes called a ‘top-up’. Find out more about top-ups.

What if I pay my own care home fees?

If you’re paying the full cost of your care, you are known as a ‘self-funder’. Find out more about self-funding.

What if I don’t want a financial assessment?

If you do not want to tell us about your financial situation through a financial assessment, you do not have to do so – but we may then ask you to pay the full cost of your care.

What if I give my money or assets away?

If you give away money or assets to avoid paying care fees this is seen as ‘deprivation of assets’ and will mean that your financial assessment will still include the value of the assets that have been given away. In some circumstances, we can legally ask the person who was given the money or assets to pay some or all of your care home costs.

How do I pay my care home fees?

Find out more about how to pay an invoice from the council in relation to care and support.

How often is the amount reviewed?

The amount you pay is normally reviewed each April, in line with any changes to things like benefits and pensions. Please contact the Financial Assessment team on 020 8227 2390 or financial.assessments@lbbd.gov.uk if your circumstances change in a way that might impact how much you pay.  If you do not notify us of a change, this could result in charges being backdated incorrectly.

What if I don’t agree with what I am being charged?

If you are concerned that your assessed contribution has not been calculated correctly, you can appeal against the calculation decision by contacting the Financial Assessment team on 020 8227 2390 or financial.assessments@lbbd.gov.uk. A review and response will be sent to you within 20 working days.

Where can I get advice or help to manage my finances?

Find out more about independent financial advice.  If you want someone else or the council to manage your finances, you can look into Power of Attorney or deputyship. Find out more about managing someone else's affairs. Appointeeship and deputyship can also be looked at if someone lacks capacity to complete the financial assessment process. 

NHS Continuing Healthcare

If you are placed in a nursing home by a health professional from the NHS because you need long-term health care, it will be paid for by the NHS. This is sometimes called NHS continuing care. You will not be charged.

Mental Health after care

If you are placed in a care home under section 117 of the Mental Health Act 1983, you will not be charged while that section is being used to provide your care.

Contact us

• If you have a question about how your charge has been calculated, please contact the Financial Assessment Team on 020 8227 2390 or financial.assessments@lbbd.gov.uk.
• If you have received an invoice with incorrect dates or services, or if you have had a change in circumstances that might affect how much you have to pay, please contact the Intake Team on 020 8227 2915 or intaketeam@lbbd.gov.uk

Other useful websites:

Long-term care – Money Helper

Paying for a care home – Which?

Paying for care – Age UK

Paying for dementia care in England – Alzheimer’s Society

Our online financial assessment calculator will give you an estimate of what you might pay towards the cost of care.