There is growing concern about the increasing cost of care and the uncertainty surrounding who it should be funded by. As of July 2024, the average weekly cost in a residential care home is £1,160. The UK average for a nursing home is closer to £1,410 per week. This means that, depending on the level of care required, individuals can find themselves paying £60,320 to £73,320 per year for residential care.
Family members or friends are often burdened with the task of collecting financial information to enable a local authority to complete a financial assessment to determine who pays for the individual’s care: the individual or the local authority? This task can be further complicated when the individual requiring care lacks capacity. So what is a financial assessment? And can you challenge a local authority’s decision on care home fee funding?
Please note that in this blog, we only deal with care home fees in England. The situation in Wales is slightly different.
| What is a Financial Assessment?
The cost of care relates only to those who can pay for it themselves: often referred to as ‘self-funders’. To qualify as a self-funder, an individual must live in England and have an income and capital over £23,250.
Individuals who are below this threshold, but have assets over £14,250, will have to contribute towards the funding. Local authorities will collect information based on an individual’s assets and income to undertake a financial assessment. The local authority will then use this information to complete their assessment. Income refers to anything that the individual receives as an income, such as their pension. Capital can include any property that the individual owns, as well as their savings.
Individuals with capital and income below £14,250 are funded entirely by the local authority.
| Challenging a local authority’s assessment on care home funding
The assessment procedure can be lengthy and time consuming. In addition, errors in information provided may result in inaccurate assessments and incorrect decisions about a person’s financial position. This could ultimately lead to individuals paying for their care when they otherwise would not have to.
It is possible to appeal financial assessments to overturn decisions that the Local Authority has made. Our solicitors can provide bespoke advice about the financial assessment process as well as assisting clients in the appeal process. From general advice right through the legal representation at the appeal hearing.
Call our team of specialists today on 0800 988 7756 to discuss challenging a local authority care home funding decision. Or book an appointment online.
