Paying for care in a residential or nursing home

Who will pay the cost of your care home?

Unlike the NHS, social care is not free, and you may be expected to contribute towards the cost of the care you receive in a residential or nursing home. Most people have to pay something towards the cost of their care.

If you are considering entering a residential or nursing home, you should first ask us for a free needs assessment to ensure that it is appropriate for you.

A free financial assessment will follow to determine if you need to contribute to the cost of your care home.

Savings or other capital assets over £23,250

If you have savings or other capital assets over £23,250, you would be expected to pay for the full cost of your care home.

Capital assets could include:

• other properties you own (not including the home you live in)
• shares
• other relevant assets

You will be expected to enter into a private arrangement with your chosen residential or nursing home if:

• you can arrange your own care
• or you have given somebody else legal power to represent you

Learn more about buying your own care services and find independent financial advice.

Savings or other capital assets under £23,250

If you have less than £23,250, we will complete a free financial assessment to determine how much you can afford to contribute towards the cost of your care.

How we calculate your contribution

Simply put, the calculation is savings and assets + income – allowance = your assessed contribution.

We calculate our financial assessment by looking at your:

• income
• savings
• capital assets
• personal expenses allowance

You'll need to tell us about your finances and income to have the financial assessment. You can complete our online financial assessment form. If you cannot fill out our online form or do not have anyone to assist you with it, contact the Financial Assessment Team. We can assess you over the telephone or face-to-face.  

When we receive your form and supporting documents, we will write to tell you the outcome of your assessment.

View our policy for contributions in adult social care (.pdf format, 607 KB).

Providing your financial information

You do not have to disclose your financial circumstances if you do not want to. However, if that is your choice, we will assume that you are prepared to pay the full cost of your care.

Income

We will include almost all benefits and other income, such as occupational pensions, annuities and income from property rental.

However, we may disregard or partly disregard certain types of income. For example, we disregard the mobility component of disability living allowance and personal independence payments from all assessments.

Tariff income from savings

Tariff income is a means-tested contribution from a person's assets towards the cost of social health care support. For every £250 of capital between £14,250 and £23,250, we assume you have an extra £1 per week in income.

Example

If you have £14,750, you will be treated as having an extra £2 per week of tariff income (2 lots of £250). 

Savings

We take into account almost all types of savings, including:

• current and savings accounts
• individual savings accounts (ISAs)
• shares
• investment bonds
• National Savings

Assets (the property you own)

We will include your home in your financial assessment if you own it. However, we won't include it if one of the following people also lives in the home and will continue to live there when you have moved into a care home:

• a husband, wife or civil partner
• a close relative over the age of 60
• a dependent child
• a relative who is disabled or incapacitated

Twelve week property disregards

If we take your home into account, we will ignore its value for the first 12 weeks, starting from the date you first become a permanent resident.

This 12 week property disregard will give you time to decide what to do with your former home.

You will still be expected to contribute to your care from your income and other assets during this time. You will also have to continue maintaining the property and meeting any ongoing costs that arise.

Personal expenses allowance

The personal expenses allowance is an amount set by the Department of Health and is the minimum amount you must be left with if you are in a permanent care home placement. The Department of Health usually increases this amount annually from April.

Suppose you are responsible for dependents not living in the same care home or who have continuing expenses unrelated to their care home costs. In that case, we may be able to increase your personal expenses.

Contact the Financial Assessment Team for more information.

Check you are receiving the benefits you are entitled to

If you want to make sure you are receiving all the benefits you are entitled to, contact:

• Department of Work and Pensions (if you are over 60)
• Job Centre Plus (if you are under 60)
• Age UK
• Citizens Advice

Use the benefits calculator on GOV.UK.

We can check your benefits as part of your financial assessment.

Paying the full cost of your care home

If you do not qualify for help with the cost, you will need to pay the full cost of your care home. However, there are sources of support if you are funding care yourself.

The Deferred Payments Scheme

The scheme is designed to help you if:

• we have assessed you as having to pay the full cost of your residential care
• but cannot afford to pay the full weekly charge because your capital is tied up in your home

Effectively, the scheme offers you a loan from Oxfordshire County Council using your home as security.

How the scheme works

We will financially assess your ability to pay a weekly contribution towards your care from your income and other savings. The difference between your ‘assessed weekly contribution’ and the actual cost of your care home is the ‘deferred payment’.

The deferred payment builds up as a debt repaid when you sell your house. However, if you decide not to sell your property during your lifetime, the debt must be repaid to the council from your estate after your death.

We will:

• invoice you every month for this contribution
• arrange payment of the full cost of your care with the care home

You will not need to make payments directly to the care home other than for personal items or services.

The deferred payment agreement

You must sign a legal agreement with us if you decide to use the Deferred Payments Scheme. We then place a ‘legal charge’ on your property to safeguard the loan.

How much the scheme costs

An administration charge of £650 covers the cost of setting up and maintaining the agreement. Other charges, such as legal costs and land registry fees, may also apply.

You will be charged interest on the loan the same way you would if you borrowed from a bank. The Department of Health sets this rate and reviews it regularly. 

Learn more about the scheme

Contact the Financial Assessment Team for more information.

Your benefits

If you fund your care, you will still be entitled to your benefits. The money can help pay fees.

Make sure you are claiming all the benefits that you are entitled to.

Paying the calculated contribution

If you are eligible for funding support, we will calculate your personal budget. Part of this calculation is the amount you will pay towards the cost.

We ensure that your personal budget is enough to cover the cost of at least one suitable care home.

How your benefits are affected

If we are paying for your care in a care home, you may not be entitled to receive all of your benefits. We will include any benefits you receive in our financial assessment of how much we expect you to contribute to your care cost.

Contact the Department of Work and Pensions on 0345 606 0265 to learn how your benefits may be affected if you go into a care home. 

Choosing a care home

If you choose a home that costs more than the option we offer, you will have to find someone who can pay the difference, or you may have to move to a less expensive home (see paying the top-up below).

Topping up a personal budget

A top-up is the difference between:

1. the cost of the care that the council has identified will meet your eligible needs
2. your chosen accommodation

An example top-up

The council assesses that a care home costing £473 per week can meet your eligible needs.

You choose a care home that costs £500 per week.

Your top-up payment will be £27 per week.

Paying the top-up

You can arrange for a third party, such as a relative or charity, to pay a top-up to cover the cost of a more expensive home.

You can only pay the top-up yourself if you:

• are subject to a 12-week property disregard
• have a deferred payment agreement in place
• are receiving accommodation provided under S117 for mental health aftercare

Top-up agreement

We will confirm your top-up arrangement with an agreement. The document includes information about what will happen if:

• we change any fees
• you don't pay the fees

Arranging care services yourself

You should get independent financial advice to help you make the right decision about funding your care.

Learn more about finding a care home.

NHS funding

NHS continuing healthcare

You are entitled to NHS continuing healthcare if your care needs are primarily health-based. We will refer you to the NHS during your assessment if you are likely to be eligible. Learn more about NHS continuing healthcare on the Age UK website.

NHS-funded nursing care

If you don't qualify for NHS continuing healthcare, you may be eligible for NHS-funded nursing care. If a registered nurse has assessed you as needing care, the NHS contributes to the cost directly to your nursing home.