Finding the right Nursing home for yourself or a loved one can be a stressful experience, and understanding how to fund nursing care is a crucial part of the process. This guide is here to provide key information about nursing home funding in England. We’ll be exploring the costs involved with residential care, eligibility thresholds, available funding options, and the impact on benefits and pensions. Whether you are considering residential care, nursing care, or respite care, this guide will help you to get to grips with the financial aspects of care home arrangements.


Thresholds for Care Home Funding in England

Care home funding in England can be divided into self-funding and state funding. The local authority conducts a financial means test to determine which category an individual falls into. The means test evaluates your capital and assets. In England for the year 2023/24, the thresholds are:

  • Lower limit: £14,250 – If your capital and assets fall below this amount, your care will be state-funded.
  • Upper limit: £23,250 – If your capital and assets exceed this amount, you will be responsible for self-funding your care.

If your capital and assets fall between £14,250 and £23,250, your care will be partially state-funded and partially self-funded. Alternatively, a relative or friend can choose to pay your care home fees or contribute a top-up fee to cover the difference between your affordability and the fees charged by the care home. It is important to note that the individual who signs the care home contract is then legally obligated to pay the fees.


Price Cap

From October 2023, a cap of £86,000 will be implemented on nursing home fees in England. This means that no individual will have to pay more than £86,000 towards nursing care fees in their lifetime. However, the cap only applies to care services provided within the home, and individuals are still responsible for covering their daily living costs, such as food, energy bills, and accommodation.


Available Funding Options in England

As well as local authority funding, there are other funding options available to assist with residential care home fees, in Norfolk and throughout England. One option is NHS continuing healthcare funding (NHS CHC). Eligible individuals receive their personal care and/or specialist support funded by the NHS. To qualify for NHS CHC, an individual must be assessed as having a ‘primary health need,’ which involves ongoing physical or mental health conditions requiring focused care.

For individuals who do not qualify for NHS CHC but require nursing care, there is the option of NHS-funded nursing care (FNC). This funding is provided by the NHS to contribute towards the nursing portion of care home fees. As of April 1, 2023, the FNC rate in England is £219.71 per week. Those who started claiming before that date may receive a higher rate of £302.25. The funding for FNC is channelled through the local Clinical Commissioning Group (CCG) of the nursing home.


Private Funding

Private funding is a common method of financing care home expenses, using an individual’s personal funds. There are various avenues available for privately funding care, beyond the straightforward option of selling your loved one’s home. Let’s explore some of these alternatives in more detail:

  • Pension income and drawdown: One potential source of funding is utilizing your loved one’s pension income. By transferring the pension to a drawdown product, you can explore how it can be used to cover care home costs. It’s important to evaluate the viability of this option and consider professional advice to ensure a clear understanding of the implications involved.
  • Equity release: If your loved one’s property holds equity, it may be possible to tap into this value without selling the property outright. Options such as lifetime mortgages and home reversion can be explored, allowing your loved one to access funds while retaining the right to live in the property. Seeking independent financial advice is crucial to fully comprehend the details and implications of these options.
  • Utilising savings: If your loved one has savings, these funds can be used to finance their care. However, it is essential to carefully consider the longevity of these savings and create a plan for managing expenses in case they are depleted over time. Developing a budget and exploring other funding options can help ensure financial stability in the long term.

At Oakwood House, we understand the importance of funding options when it comes to choosing a care home. A significant number of our clients opt for private funding as their preferred method of financing care. Private funding offers individuals and their families greater flexibility and control over their care choices. It enables them to access a wider range of services and amenities tailored to their specific needs and preferences.



Final Thoughts

If you’re looking for more information when it comes to funding nursing home care, we’d be more than happy to help. As an award-winning nursing home in Norfolk, Oakwood House provides exceptional levels of care and are able to guide you through everything relating to funding.

Why not pick up the phone and give us a call on 01603 943 213? You’ll find that we’re there for you and more than happy to provide any information that you need.