Understanding Care Home Fees and Council Funding: A Complete Guide

Navigating care home fees and council funding can be complex. Understanding when your local authority should contribute to care costs is essential for families planning long-term care. This guide explains council responsibilities under the Care Act 2014 and how means-tested support works.

Council Duties Under the Care Act 2014

Local authorities must arrange and fund care services when three key conditions are met:

1. Eligible Care Needs: The individual has been assessed as having eligible needs for care and support under national eligibility criteria

2. Financial Means Test: Their assets and income fall below statutory thresholds (detailed below)

3. No Alternative Funding: No other organization, such as NHS Continuing Healthcare, is responsible for covering costs.

When these conditions apply, the council must provide necessary care services, including residential care home placement or care at home.

Care Home Fees and Council Funding: Understanding the Means Test Thresholds

·1. Over £23,250: These individuals are considered self-funders, and they must pay for their care in full. They have control over their care package, and can choose their own care provider or care home. 

2. Between £14,250 to £23,250: The Local Authority will pay a contribution towards care fees. The resident must also pay a contribution based on the level of their assets.

3. Under £14,250: These individuals must pay a smaller contribution towards their care costs based on their income. The intention is that their capital will be preserved at this level.

Will My Property Count Toward the Means Test?

Property valuation significantly impacts care funding calculations. However, your home is automatically disregarded (excluded from assessment) when occupied by:

• Your spouse, civil partner, or unmarried partner

• A dependent child under 18 years old

• A relative aged 60 or over

• A relative who has a disability or is incapacitated

Local authorities may also exercise discretion to disregard property in other compassionate circumstances, such as when a former carer continues residing there.

Common Care Funding Challenges

NHS Continuing Healthcare Assessment

Before accepting self-funding status, ensure you've been properly assessed for NHS Continuing Healthcare. If your primary need is healthcare rather than social care, the NHS should fund your care completely, regardless of assets.

Care Cost Calculation Errors

Local authorities sometimes miscalculate contributions. Common errors include:

• Incorrectly valuing property or assets

• Failing to apply appropriate disregards

• Miscalculating weekly income contributions

• Not considering disability-related benefits correctly

Care Home Contract Disputes

Understanding your care contract rights protects you from:

• Unexpected fee increases

• Unlawful third-party top-up requirements

• Unclear notice periods for fee changes

• Inadequate care standards for the price paid

Get Professional Care Funding Support

Don't navigate care home fees alone. Contact our specialist care funding solicitor Ruth Tarr for expert guidance on 03339875118 or email ruth.tarr@nelliesupports.com

We help families across England understand their care funding rights, challenge unfair assessments, and secure the financial support they're entitled to under the Care Act.

Need immediate advice about care home fees? Whether you're facing self-funding, seeking council support, or challenging a funding decision, our experienced team provides clear, practical guidance tailored to your circumstances.