Many people worry about the potential cost of personal care as they get older. Some are concerned that paying for the care they need will eat away their savings and assets and leave nothing to pass on to their children. Others worry whether they’ll be able to afford care costs at all.

While there are very real issues around the cost of care, sometimes the future isn’t as bleak as people assume. This quick summary of care cost funding will make sure you have accurate, up-to-date information for your financial planning.

Care Cost Cap

Before diving into the details we should look at the care cost cap that is scheduled to come into force in October 2023. The cap aims to ensure that no individual will pay more than £86,000 for personal care (either residential or care at home) during their lifetime.

A couple of points to note. Care costs incurred before the cap is introduced won’t count towards the total. Also, the cap doesn’t apply to the accommodation element of care home fees.

Care Needs Assessment

The process starts with a care needs assessment carried out by your local council. This is a formal statement of the personal care you need. Care not included in your assessment probably won’t be included in the care cost cap.

Means Testing

The financial support you get will be affected by your income, savings and other financial assets. Your property is included in the calculation only if you are going into residential care, and only then if you don’t have a spouse or dependent relative still living in your home. It may be possible to enter into an agreement with your local authority so that they recover your care costs from your estate after you die.

If you have capital worth more than £23,250 you will be expected to pay for all of your care costs (the upper capital limit). If your capital adds up to less than £14,250 the council will pay for your care costs. Between these two figures there’s a sliding scale for your contribution.

It’s planned for the upper capital limit to increase to £100,000 in 2025.

Hopefully this has helped to clarify the situation. If you have any questions about funding or any other aspect of care, please call Altogether Care on 01305 300 161, email contact@altogethercare.co.uk, visit our website or use our care calculator.