GUIDE TO CARE HOME COSTS
When you’re weighing up the options and deciding what care home is the best fit for a family member, it can be stressful and there’s a lot of information to digest.
You might find yourself asking – and perhaps struggling to find the answers to – questions like:
“What is the weekly cost of a care home in Scotland?”
“Do nursing homes cost more than residential homes?”
“Is there funding in Scotland for care home costs?”
We want to make it as easy as possible for you to find the answers to these questions and understand the cost of care, so we’ve put together this guide with all the information you need to know.
Kirk Lane Nursing Home Costs
We know that care home fees in Scotland can reach up to £2,000 per week. The weekly cost however for one of our standard rooms here at Kirk Lane is £1,350*, rising to £1,750 for our range of deluxe rooms. Other providers charge different fees, both higher and lower.
(*Figure correct as of April 2021 – please contact us and we’ll be able to discuss fees based on individual needs.)
What do those costs cover? We provide 24/7 nursing care along with the highest quality accommodation and facilities. Fully-furnished en-suite bedrooms, meals and essentials like electricity, a TV, phone, internet and laundry service are included in the cost of our care homes. We also offer a full timetable of social activities in all of our homes and access to facilities which help our residents feel their best, like hairdressing.
Kirk Lane is a nursing home and there can be a difference in price between care homes and nursing homes. Residential care homes provide accommodation and personal care for people who need extra support in their daily lives but there may not be nursing services offered.
The higher cost of residential nursing home care reflects the fact that more specialised care is provided by registered nurses, and it is tailored to those with specific medical requirements. Some specialist care for dementia patients can be even higher.
The Difference Between Council Funded and Private Council Funded (Sometimes Called Self-Funded)
Our care homes fees are payable by the individual, but you may be eligible for help depending on your circumstances. If you are privately funded, you have control to secure your first choice of care depending on your preferences. Not all available rooms in care homes are available to social work funded residents, so you may have less choice and availability.
To be council funded means that the council will pay the cost of the care home above what you can afford to pay. The council will split the bill, with a portion being sent to you to pay and the balance paid by the council. Normally you would be eligible for council funding if you have less than £28,500 in capital and assets and also if your income is less than £740 per week. Any application will depend on other circumstances and should be discussed with your social worker. Please refer to our Guide for Council Funding.
If you are not council funded, you will be privately funded and you will be responsible for the full amount of any fees.
However, most people are eligible to receive free personal and/or nursing care. Again this should be discussed with your social worker but free personal care amounts to £180 per week and free nursing care amounts to £81 per week, normally totalling £261 per week. This would usually be paid directly to the care home. If you are privately funded and eligible for the basic State Pension, you will continue to receive this payment.
Private Funding for Nursing Home Costs
If you, or the care-receiver, is privately funding nursing home costs, the prospect can be daunting. There are some options, however.
Capital, Income and Property
While some people are able to fund care fees from income, it is also very common to fund care home fees from the sale of your house. If you don’t want to put your property on the market, you could rent it out instead to make additional income and avoid using savings. Equity Release may also be an option to raise funds derived from the value of an owned property. Please take independent financial advice regarding this.
12- Week Disregard Scheme and Deferred Payment Agreements
It is not unusual for private residents to move into a care home while they still have finances to sort out, often the sale of a property, and two council funded schemes exist to enable that to happen should other assets not be immediately available. These are the 12-week Disregard Scheme and Interim or Deferred Payment.
12-Week Disregard Scheme
If you are moving into a care home permanently, you may be entitled to a 12 weeks disregard scheme. The council must not include the value of your home in your financial assessment for the first 12 weeks after you move in.
Deferred Payment Agreements
While you are selling your house, the council can offer a deferred payment agreement. This is a type of loan. The council pays towards your care home fees and then reclaims the money when your property is sold. Depending on equity and council area, the council may pay the whole of the private fees or only the NCHC amount, leaving a balance to be paid by you when your property sells.
As a first step, it is important to contact your local social work department for advice on your personal circumstances.
Before taking up residency, a written agreement will be signed stating the terms and conditions. Please contact the manager of any of our homes if you would like a copy or more details.
Rather than using capital to pay care home fees for an unknown period of time, it is possible to buy a policy that will pay these fees. This insurance can either be an insurance taken out historically to cover unknown fees or can be the purchase of an annuity for a fixed amount lump sum to pay care home fees immediately for the whole of the residents life. Known as an Immediate Need Care Fee Annuity, or an Immediate Needs Care Fee Payment plan, this type of insurance can provide you with regular income towards the costs of a care home, after a lump sum has been paid and can provide certainty of what assets will remain after paying care home fees.
Care Home ‘Top-Ups’
Whilst it is less common, some people make use of this option, which is when a friend or relative supports with a ‘top up’, or an amount of money which allows someone to move into a care home which they wouldn’t otherwise be able to afford, or which is more expensive than the amount of support they’re entitled to from their local authority.
If you want to know more about the cost of nursing care, or the cost of dementia care, just get in touch with us here at Randolph Hill.
We’re happy to discuss costs for your individual situation and help you to understand what options are available to you and your loved one.
We have provided a number of useful websites that you may find helpful regarding fees and funding information for care homes.