Home care involves regular visits from a professional carer to fulfil tasks that one may be struggling to perform themselves. No two people are the same and the cost of care comes down to specific circumstances. The options for care and variables to make the care more person-centred make the initial conversations about care and its cost extremely overwhelming. It can also be challenging to attach such an emotional prospect to numbers such as costs, your income or your savings, but care is rarely free, and its price can come as a shock. Read on to hear more about a real-life case of paying for care.
The national cost of dementia per year is £34.7 billion, so on average, there is an annual cost for each person receiving dementia care of £32,250.
The price of care is best understood at the outset, as it is likely that care will increase over time. Making the right investment decisions from the beginning and knowing your options will stand you in the best stead moving forward. So, the first step is to distinguish the specific type of care you need. Care consultations will dictate factors, such as how many carers are required and what aspects of care are included. It is worth noting that different care intensities will require regulation from an authorised company. Care Specialists can help talk you through this process; reach out to your preferred provider.
Types of care
You’re entitled to care if you have a mental or physical need, are suffering from an illness, if there is an impact on their well-being due to lack of support, or cannot achieve several of the care outcomes.
The main types of home care determining the base costs are hourly, live-in, 24-7 and respite. To understand each element of required care, we’ll break them down to exhibit what you are paying for. Keep in mind that this is a generalised introduction to the care types.
Costs are dependent on the needs and outcomes of a family. So, suppose your goal is to maintain some independence. Here the care outcome requirements will differ from where your goal is to provide support with administering medication or supporting with continence. Credible care providers will be prepared for these outcomes to change with time.
Hourly
Hourly care involves Carer visits from entirely bespoke to your needs, from their duration to the activities or responsibilities involved. Hourly care is more commonly linked to earlier diagnoses for those requiring some care at specific times.
Live-in care
Here, a Carer moves into the home where the care takes place. This provides constant support at all hours and days of the week, often seeing two Carers working in tandem to deliver ongoing support for you.
Respite Care
If you are the primary carer, respite care is an option for times when you might need an organised break from your duties. A carer will temporarily step in until you return, ensuring that they are well looked after, providing you with peace of mind.
Considering the cost of hourly care, with hours depending on the type of care that is right for you, the average hourly price for at-home care in the UK is £18. The ability to charge an hourly rate is another benefit of home care rather than a care home, where weekly costs can reach £796 on average.
After identifying the relevant care type, the next step is a care assessment.
Assessment
To accurately calculate the cost of care that you will need, a care assessment works out the precise care needs and considers your financial capacity.
A care assessment can be arranged for free through your local authority for support with everyday tasks, once the individual receiving care has consented to it. Then a Care Specialist visits the home where the care is required to gain a better understanding of your life’s practical and emotional aspects.
Care supports anything you are “unable to achieve” and helps maintain independence. Sufficient support will reduce distress and potential danger, and provide loved ones with peace of mind. Transparency is critical, to conduct the most precise assessment and appropriate care plan.
We recommend being thorough, specific, and honest throughout the assessment. Do not shy away from admitting what you may be finding challenging or what you expect from a carer.
The care plan will determine the total cost of the care. The figure established in the plan will have taken the support needed and your personal circumstances into consideration. Care plans allow local authorities to conduct a means test to determine the cost you need to pay and what financial support is available.
Self-funding
Where governmental support is not available, roughly half of those receiving care are classified as self-funded. The means test will value your savings and assets, and if this total exceeds £23,250, or if your weekly income is of a higher value than the weekly cost of the care required, you will be expected to self-fund. Should you begin self-funding and then find that your capital decreases, you can contact your local council ahead of when you expect the decrease to happen. If you are self-funding at any time, it is advised that you seek independent financial advice.
Local authorities will advise you and must reveal what they would typically pay for the required care. Your local council’s advice could include what services are available and how to contact these services. In some cases, local authorities may arrange the care for you at a cost.
The financial advisor may tell you about financial products, which are alternative sources of support for those self-funding. There are a large variety of products, such as equity release plans, and varying criteria for benefiting from them, such as having made a significant upfront payment toward the care.
Governmental support
Where governmental support is available, it is provided by the local authority. If your weekly income costs less than the care for a week and your asset valuation is between £14,250 and £23,250, you’re able to receive support from the local authority whilst you contribute through means such as pension and tariff income. Where your assets are valued below £14,250, there is no need to pay a tariff income.
The amount of government funding will be mainly dictated by the results of the Financial Assessment, as well as the guarantee of Personal Expenses Allowance. This concept ensures that sufficient support is given to ensure that after having paid for care, you are still receiving an income. The amount of leftover income will entirely depend on your location within the UK.
Current affairs
The topic of care is constantly making headlines as requirements change alongside society, as the government cap and extend its contributions to funding. New funding plans are set to come into action in October 2023, including matters such as capital limit and how heavily asset valuation will be taken.
The care sector agrees on the core issues of the care crisis at present, being the lack of funding, the under met care needs and declining access to care services. It is an increasing cause of tension as the gap between care needs, resources and accessibility to the latter seem to be growing.
You might wish to stay up-to-date with the Care Crisis campaign.
Benefits
You may learn that you are entitled to several benefits affiliated to care, which can help fund and sustain the care you require. These include:
- Personal Independence Payment (PIP) or Attendance Allowance if you’ve reached state pension age
- Council Tax support/reduction
- Universal Credit
- Carer’s allowance: https://www.gov.uk/carers-allowance
- Child Benefit or Child Tax Credit
- Employment and Support Allowance
- Housing Benefit
- Income Support
- Jobseeker’s allowance
- Pension Credit
- Universal Credit
- Working Tax Credit