How do people afford live in carers or care homes?

[GreenApples1977]

My father is in his 90's and from being relatively independent he has suddenly become quite frail...looking at the costs involved with care how on earth do people manage the high costs? He is comfortable but not rich and his pension won't cover care and maintenance of his house and living costs. Any advice appreciated!

Basically, they use every penny (savings and property) until it runs out.
It is a lot of money.

Rent out the house and make up the short fall, or see if they can get help via social services.

Care homes you use all your savings then sell your house to keep paying. When the money runs out (1/4 million in aunts case and £80k grans case), the government pay.

We've sold relative's house (might easily live another five years at least) and put all the money into high-yielding investment trusts (around 5%). That, together with pensions and attendance allowance pretty much covers the care-home fees.

Your local council will probably have an online financial assessment form that will give you an idea of whether he qualifies for funded care.

But this is what ‘saving up for your old age’ is for. Care is very expensive, and many of us are going to need paid care in our last years.

My grandmother was in care for her last 5 years or so. She never owned her house or any assets, only had her pension.

Basically her entire pension went to the care home but this only covered a quarter of the fees, her local authority paid the rest.

She was assessed annually by the local authority so we had to submit all her bank statements and she was allowed a certain amount of savings as well as a bond that paid for her funeral.

In case you're not aware, don't forget Attendance Allowance. If he's been fit and independent until now I guess he's not been claiming it. It's a non-means-tested benefit to help pay for frequent attention. If he now needs to be in a care home he will probably qualify for the higher rate, which is about £4,000 a year as I recall. It all helps.

dane8
Thanks for your response.
Home Instead charge £40 pH so coming in for 2 hours would be £80 per day....he won't qualify for help I don't think so this will be unaffordable.

@MurielSpriggs I thought you couldn't keep your attendance allowance once moving into a care home.

@stayathomegardener

You can keep it if you are self funding.

Oh ok, that's super helpful, thank you.

Does he have more or less than £23,250 in savings. If less then he may get some help

www.nhs.uk/conditions/social-care-and-support-guide/money-work-and-benefits/paying-for-your-own-care-self-funding/

You go through Social Services. You won’t get to choose the care provider. For home care, savings over the threshold will go first, and then Social Services will fund. If he goes into a care home, the house will be sold and once that money and savings over the threshold have gone, Social Services will fund.

Private carers and care homes are only for those with substantial assets.

Mil paid £1014 per week to stay in a care home.
We sold her house and at the moment there is approximately
31/2 years left of money.
And for that she hasn't got even got her own bathroom.

@MurielSpriggs

In case you're not aware, don't forget Attendance Allowance. If he's been fit and independent until now I guess he's not been claiming it. It's a non-means-tested benefit to help pay for frequent attention. If he now needs to be in a care home he will probably qualify for the higher rate, which is about £4,000 a year as I recall. It all helps.

Although it will cease being payable once LA starts contributing to his care home

[quote stayathomegardener]@MurielSpriggs I thought you couldn't keep your attendance allowance once moving into a care home. [/quote]
You can if you’re a self funder, but once the LA starts contributing you can’t

Have you claimed attendance allowance on his behalf? My DM receives over £300 per month. It doesn’t cover the full cost of 3 carer visits a day but it.certainly helps. My MiL was in a nursing home for four years before she died and had just about gone through all her savings. I don’t know what we would have done. There used to be homes run and funded by local authorities. Just saying …..

Granny was having live in carers as she desperately wanted to stay home but after 3 years of £2,100 per week the money ran out so she had to sell the house she’d lived in since 1968 and move to a care home. So sad for her but she’s doing well. Old age sucks.

Sorry to say, but if he needs the care and he has the money it's not unaffordable. Local authority will
pick up the tab when his
money runs out. It's a very flawed system.

It's not unaffordable though is it at £80 per day as once he's down to £23,250 the council will pay. If he's got over that then he's got the money to pay until ta gone down!

I'd look for a better agency though £40 is astronomical.

And council won't pay for £40ph

I'd look for an independent local carer (and get references and see their insurance/dbs check) £40ph is too much.

Get a home help in for a couple of hours a week again ask on your local fb page for recommendations apply for attendance allowance (not means tested) which should cover the cost if the home help at least.

Basically, unless very lacking in funds, they have to use their savings to pay for care.

A family member had daily carers until a few months ago. The care company charged £25 per half-hour visit. So with 2 visits per day that worked out to approx £1,500 per month.

The care home fees now are about £5,000 per month.

Savings can quickly run out when you're forking out £60k+ per year!