In England individuals are responsible for paying for their own care.
Only people with less than £23,250 in assets and low incomes receive help from the State to pay for their care and support. Eligibility for local authority funding for care is means-tested. If the individual has assets above £23,250, they are currently required to pay for care home fees. If an individual has assets between £14,250 and £23,250 they may be required to make contributions proportionately.
The Care Act 2014 introduces a consistent way for people to defer payment of the cost of their care home fees. This means that individuals will not have to sell their home during their lifetime to release equity. Instead the cost of their care will be recovered following the sale of their property after they die. The interest rate charged by the local authority for the deferred payment is likely to be in line with those of high-street lenders.
The Department of Health has released this leaflet on deferred payment agreements.
Informal (unpaid) carers
Many people find they have become the main carer for a partner or parents. The Care Act recognises the contribution of those unpaid carers providing care to a friend or relative. These carers will be entitled to receive an assessment of their needs with regards to wellbeing. If eligible they will then receive financial support to enable them to maintain their own wellbeing whilst providing care for someone else.
Download our free full guide to The Care Act 2014: How it affects you (719 KB)