Whether an individual needs to pay for their Care Home depends on their financial circumstances.
Initially, the local authority will need to assess an individual’s finances through a means test. This will determine who is responsible for paying for long-term care by looking into the value of that individual’s assets. This usually includes bank accounts, savings, investments and property. The combined value of the assets will then determine if the local authority will pay towards the fees. If you have more than £23,250 (England) or £50,000 (Wales) then you will pay in full for your own care.
Homeowners will usually need to pay for their own fees as their assets will exceed the above figures. However, there are instances where your home will not be included in the financial assessment, even if you don’t live in it. This is known as property disregard. Some examples of when the house may be disregarded are:
You move into a Care Home on a short-term or temporary basis.
You move into a Care Home permanently, but your spouse, partner or civil partner still lives at home.
Your close relative aged 60 or over lives in the house.
Your close relative under 16 whom you are legally responsible for lives in the house.