Well, I thought it was common knowledge that if you are self-funding then the council want you out of the family home because a) they use those funds to prop up ailing care homes, which is pretty much all of them these days, they are facing a crisis and b) it frees up a nice four-bedroom house for a family moving into the area and eases the housing crisis - fair enough, but not necessarily in your interests if you are the 'offspring' and c) once the spouse is out of the house, the capital made available can be 'tapped' by the council to use to fund the other half who may be in a care home. They can't tap those funds if the other half is still residing in the house.
Another reason may be that a 'vulnerable' adult alone in the house may be a Social Services liability if found alone and dead after weeks of neglect, whereas a care home resident who dies through neglect is - I can assure you - of no interest to anyone whatsoever and the care home will not be found liable except in extreme circs.
Even care homes that are privately owned will have many residents that are part funded by the council.
Every time we have a social worker round our house they are putting in a word for having my dad move into a smaller residence, even when the purpose of their visit has nothing to do with him. It's just worth a try, on the off chance. It won't be for his benefit; nothing they do ever is.
Mypip, I really don't know what to say about your not wanting LPA on health and welfare. It's not just for DNR stuff, but what if you are of the opinion she can be saved and some arrogant consultant 'knows better'? Good luck arguing that one through.
But it is not as extreme as that, usually. It's if your mother loses mental capacity, temporarily or forever, and then the state - ie the local council - can take over and effectively cut you out. Again, you will not even have access to her medical notes, so if you suspect something is going on, you will not be in the know.
Any Nurse Ratched you come up against, and it's 'Do you have PoA? Oh you don't?' and see their eyes gleam with triumph. 'Right, we'll do it my way.'