There is no legislation that says she needs to go home unless she’s already had carers in, legally she can move from hospital to community hospital to care home. They prefer to send people home with care because it’s cheaper but they can discharge her to a care facility.
You’re going to need to stand your ground. While she may be clinically ready for discharge, that discharge needs to be safe. The home should be assessed by OT and social work and a care plan agreed before discharge - there will be a hospital social worker who should be responsible for assessing her safe discharge, this isn’t a medical assessment and is separate from the question of whether there’s a clinical need. Ask to speak with the hospital social worker and speak to your local adult care social work team because they’ll take over after discharge.
The final decision should be an agreement between the medical team, social care team, AHPs and social work and you. There’s a legal duty on social work to seek and consider your views, so you need to speak to them.
In terms of funding, the local authority should cover the first few weeks (12 I think) before you’d start having to self fund - this is the bit they’ll be trying to avoid.
It’s appalling but stand your ground and explore their risk assessment fully (ie what makes them think she can mobilise safely, what evidence do they have that she could feed herself, what evidence do they have that she could use a safety alert), basically make them explain their assessment rather than you telling them it’s not safe. Ask for a copy of her care plan and go through it with a fine tooth comb, asking for a clear explanation of each part and what they have in place to keep her safe. Make them do the work of explaining to you, write it all down.
If the person you’re speaking to can’t or won’t, tell them to find you someone who can. Keep punting it up the ladder both in hospital and social work.
In the meantime look for nursing homes/care facilities that have space, there may be a waiting list but it may be possible to negotiate recuperation at a community hospital while waiting for a place. Them not actually discussing it with you isn’t good enough, and is their way of avoiding a difficult conversation - put all of your concerns in writing to the discharge team, social work department (write to the Head of Service if need be), make reference to the 3 point criteria for Adult Support & Protection which your relative definitely meets and ask that they provide a written response to each of your concerns. Written each in a numbered list.
Its time consuming, emotionally heavy work, but if you make enough noise, in writing, citing adult protection, you’ll get a response.