Support for self-funders

Self-funding your long-term care

If you have capital (savings and assets) worth £23,250 or over, or a weekly income high enough to pay for care home fees, you will not qualify for funding from us. Instead you will need to pay for your own care. This is called ‘self-funding’.

How to fund your long-term care

Here are some other options for you to raise the money that you need to pay for your care:

Check what benefits you qualify for

Make sure you check that you are claiming all the benefits that you’re entitled to. Some benefits, like attendance allowance and personal independence payment (PIP), are not means tested - this means they do not check your income or capital. You can use them to pay towards your care.

You can check your entitlement to benefits on the BetterCare West Northamptonshire website.

Downsizing

If your home is larger than you need, you could consider selling your home and buying a smaller one. This would free up some of the value in your home, which you can use to pay for your care costs.

It could also give you the opportunity to live somewhere that might cater better for your current and future needs, such as:

• a bungalow - if you have difficulty with stairs
• a retirement property
• sheltered housing
• extra care housing

Before you decide to downsize, we recommend you consider the advantages and disadvantages.

Rent out your home

You could investigate whether renting out your property would give you enough income to cover the full cost of your care.

There are advantages to this, such as:

• will not accrue a debt with us or need to pay interest
• your property will be occupied and easier to insure
• your tenant will be responsible for paying the utility bills and council tax

But there are disadvantages too, such as:

• there may be periods when you do not have a tenant - and therefore no rental income
• managing a property can be stressful and time-consuming
• the rent may not be enough to cover your care fees - and other costs

Deferred payment agreement

If you cannot afford to pay your care costs due to your capital being tied up in your property, you could ask us for a deferred payment agreement.
This is a type of loan where we pay the part of your residential care bills that you can not afford and charge you interest on that amount.

You’ll repay us this money when your house is sold - this does not need to be in your lifetime.

Find out more about Deferred Payment Agreements.

Releasing money from your home (equity release)

Equity release products provide you with a way to access the money that is tied up in your home.

The 2 equity release options are:

• lifetime mortgage - this means taking a loan out against the equity in your home, and you will maintain ownership of your property
• home reversion scheme - this involves selling all or part of your home to a reversion provider, and means you will no longer own all of your home

Both options give you a tax-free sum to spend, and in both cases you get to stay in your home until you die or go into a long-term care home.

We recommend that you take financial advice to check how it will affect your future choices and your financial situation later in life.

Other options to pay for your care

Other ways you could pay for your care include:

• cashing in savings and shares
• selling things you own, such as art, antiques and collectibles
• checking your insurance policies - they may cover some care costs

Financial advice

Deciding how you will pay for your long-term care is a big decision. It is important that you seek financial advice to help you find the best solution for you.

We recommend that you speak to a specialist care fees adviser. They will hold a qualification that enables them to provide advice on care fees.

This must be either of the following:

• Chartered Insurance Institute (CII) CF8
• Institute of Financial Services (IFS) Certificate in Long Term Care Insurance (CeLTCI)

They’ll be able to explain all the costs and risks, and can help with other things, such as arranging your will or setting up a power of attorney.

Getting financial advice

Citizens Advice provide guidance on getting financial advice.

Learn about the role of financial advisers who specialise in care funding with Money Helper.

Help and advice for older people

Age UK offers a free and confidential information and advice service for older people, their families and carers. Find out more about Age UK Northamptonshire.

Your local telephone directory or an internet search may also provide other organisations that can help.

If your savings run out

If your savings are getting low, make sure you contact us around 3 months before you expect them to fall below £23,250. We’ll then reassess your finances and let you know if you will qualify for help with your care costs.

We will only provide funding (if you qualify) from the date you made contact with us - even if your savings dropped to £23,250 before that date.

You can get in touch with Adult Social Care on 0300 126 3200 who will need to arrange a care needs assessment.

Last updated 13 November 2023