When our parents move into a care home, we often think of all the fees. Inflation has raised the prices of so many things that now when we need to put our mom or dad into a care home, we try to ask around – Are next of kin responsible for care home fees?
The fees depend from place to place, and sometimes we can minimise the fees and sometimes not. But most importantly of all in the following, we will introduce our fees at the Oakland Care homes and give you a better look at everything that’s included in the fees.
How Do Care Home Fees Work in the UK?
Deciding that a loved one needs the support of a care home can be emotionally challenging, often accompanied by concerns about financial responsibilities. A common question families face is who will bear the costs of care.
In the UK, the primary responsibility for care home fees lies with the individual receiving care. However, this doesn’t mean families are entirely on their own. Local councils conduct a financial assessment, known as a means test, to evaluate the individual’s income and assets.
This assessment determines how much they can contribute and whether additional financial support is available.
Funding Options and Financial Assessments for Paying for Care Home Fees
Care home fees can be funded through three main options:
- self-funding,
- local council funding,
- and NHS funding.
Here’s how each works:
1. Self-Funding
The individual moving into care, or their family covers the full cost of care home fees. Currently, there is no limit to how much someone may need to pay. However, proposed legislation set to take effect in 2025 will cap personal contributions at £86,000.
2. Local Council Funding
If the individual’s assets are below £23,500, they may qualify for financial support from their local council. This assistance is determined through a financial assessment, which evaluates the person’s income, savings, and assets (e.g., the value of their home).
However, joint-owned properties are not considered if a partner continues to live in the home.
3. NHS Funding
In specific circumstances, the NHS covers part or all of the care costs. Eligibility depends on a health assessment, which evaluates the individual’s medical needs and whether additional support is required.
To determine eligibility for council or NHS funding, two assessments are required:
- Care Needs Assessment: Conducted by social services, this evaluates the type and level of care the individual needs.
- Financial Assessment: This calculates the individual’s financial resources, including savings, pensions, and benefits. Importantly, family assets are excluded from this calculation.
Are Next of Kin Responsible for Care Home Fees?
A common concern for families is whether next of kin are legally responsible for paying care home fees for their loved ones. While the term “next of kin” refers to a person’s closest living relative (typically a spouse, child, parent, or sibling) it does not automatically impose financial responsibility.
Generally, the obligation to cover care home costs lies with the individual receiving care, not their family members. However, there are some exceptions and nuances to consider.
Joint Assets
If a next of kin shares joint financial assets with the individual requiring care, such as a joint bank account or property, those assets may be considered during financial assessments. This does not mean the next of kin is personally liable for fees. For example:
- A family home may be exempt from sale if a spouse or dependent child still resides there.
- If both spouses enter a care home, the property may be assessed as part of their shared financial resources.
Contractual Agreements
In some cases, a next of kin may sign a contract agreeing to cover care home fees, often as a guarantor when the individual lacks capacity. Before signing, it’s crucial to carefully review the terms, as this could lead to legal liability.
Additionally, those with power of attorney are responsible for managing the individual’s finances to make sure that the fees are paid from the care seeker’s assets. This responsibility does not extend to using the attorney’s personal funds.
Deprivation of Assets
If an individual deliberately reduces their assets, such as by transferring money or property to relatives, to qualify for government funding, the local authority may investigate.
In such cases, the individual might still be deemed to possess those assets, potentially affecting financial assessments. This could create complications for the next of kin, who may need to explain or address the situation.
Options for Covering Care Home Fees
Even if you’re above the threshold for care home funding support, there are services and benefits that can help ease the financial burden of care.
NHS Continuing Healthcare
If you’re assessed as having a primary health need, you may qualify for NHS Continuing Healthcare. This program guarantees that the NHS arranges and fully funds your care.
NHS-Funded Nursing Care
For those in nursing homes, the NHS can cover the cost of nursing care through NHS-funded nursing care support.
Benefits for Self-Funders
Self-funders in care homes may be eligible for benefits like Attendance Allowance. This is available to individuals above State Pension age who require additional care and support due to a condition or disability.
Third-Party Top-Up Fees
In some cases, the funding provided by your local council may not cover all care home options in your area.
If your preferred care home exceeds the council’s budget, you or a family member may need to contribute through a top-up fee.
Here’s how it works:
- The council will cover part of the care costs, and the remainder will be paid by you or a third party.
- Councils must offer at least one care home option that doesn’t require a top-up fee. If none are available, you can request a budget reassessment.
- Top-up fees typically apply when opting for care homes that offer upgraded services, such as improved facilities, larger rooms, or en-suite bathrooms.
Selling a Property to Cover Fees
Each year, more than 40,000 people sell their homes to pay for care home costs. In situations where families struggle to manage rising expenses or outstanding balances, some may explore financial relief options through reliable debt settlement providers, especially when dealing with accumulated care-related liabilities. However, this isn’t always necessary:
- If you require home care or short-term respite care, your home isn’t included in financial assessments.
- If a spouse, partner, or dependent resides in your home, you may also retain ownership.
Deferred Payment Agreements
To avoid selling your home outright, a deferred payment agreement may be an option.
Here’s how it works:
- The council covers your care home fees by using your property’s value as security.
- This option is only available if your assets, savings, and income fall below the upper threshold: £23,250 in England and Northern Ireland, £35,000 in Scotland, and £50,000 in Wales.
- A financial assessment and additional eligibility checks are required.
Is Deprivation of Assets to Avoid Care Home Fees a Good Idea?
Transferring a family home to your next of kin or placing it in a trust to avoid care home fees might seem appealing but can lead to significant complications.
This practice, known as deliberate deprivation of assets, carries several risks:
- Potential for Local Authority Action: Even if you no longer own the asset, your local authority may still require you to pay care home fees as though you did.
- Loss of Control: Once the asset is transferred, you forfeit decision-making authority. Your next of kin could sell the house without your permission.
- Tax Implications: If your children sell the house, they may face capital gains tax since it isn’t their primary residence.
Paying Care Home Fees After a Loved One Passes Away
When a loved one dies, any outstanding care home fees will be settled from their estate, not by their next of kin. Unless you’ve signed an agreement to take on this responsibility, you are not personally liable for these debts.
However, if the deceased had a deferred payment agreement, the fees become a debt owed by their estate. This amount must typically be repaid within 90 days, with the local authority potentially assisting in settling the balance.
Fees at Oakland Care Group
Every care home has different rules and fees. But we want to be straightforward about the financial part of your loved ones’ stay at our care homes.
That’s why we want to answer all your questions here.
1. Do All Residents Pay the Same Fee?
No, fees vary based on factors like room size and view. However, all rooms come with similar furnishings and offer the same standard facilities and services to every resident.
Care fees may also depend on individual care needs. These are assessed by the Manager during the initial inquiry and assessment or if needs change during your stay. If adjustments to fees become necessary, the Manager will have a transparent discussion with the family, explaining the reasons for the change.
Oakland adheres to agreed dependency levels and guarantees no immediate fee increases occur without prior notice. Families are given a 28-day written notice to understand and prepare for any adjustments.
As a guide, room fees currently range from £900 to £1,130, depending on the room or suite. Fees are paid in advance at the start of each month. Final rates are determined after a personalised care needs assessment by the Manager or senior team. These fees are for self-funded residents and are subject to change.
2. Is the Fee Negotiable?
No, our fees are not negotiable as our overhead costs remain consistent.
3. What Do Our Fees Cover?
Our fees include accommodation in en-suite rooms equipped with a television and a call bell system. They also cover personal care services such as laundry and housekeeping. Meals are provided with a choice of menu options for breakfast, lunch, and supper, and drinks and snacks are available throughout the day.
Additional services like hairdressing, chiropody, and newspapers are charged separately. These costs are considered “extras” for all residents, regardless of whether they are privately funded or receive Local Authority funding.
Payment for these services is usually made directly to the provider in the case of hairdressing or chiropody, while newspaper or telephone charges are invoiced. We ensure transparency by asking external providers to publish their fees for your convenience.
Personal care is provided by a team of care assistants, many of whom hold NVQ/QCF Levels 2 and 3 in Health and Social Care, with newer staff working towards these qualifications.
This team is led by senior care assistants and a management team comprising the Lead Senior, Care Coordinator/Deputy Manager, and Registered Manager, all of whom are either qualified or studying up to Level 5.
Typically, our staffing includes six care assistants during the day and three to four at night, although this may be increased for special events or specific needs assessed by the Manager.
We also have an Activities Coordinator who organises a weekly program, published in advance, to engage and entertain residents.
Additionally, we employ dedicated housekeeping, catering, and maintenance staff to ensure our facilities are well-maintained and residents are comfortable. On-call arrangements with the senior team are also in place to provide further support.
4. Do the Fees Increase Every Year?
At Oakland Care Group, we review our fees annually to ensure we maintain high-quality care and uphold our commitment as a Living Wage employer.
Fee adjustments consider factors like:
- Changes in the Retail Price Index (RPI)
- Staff costs, which are a major expense
- Government-mandated changes, such as higher Employer Pension contributions
- Regulatory requirements from the Care Quality Commission (CQC)
- Updates to Health & Safety laws
As a Living Wage employer, we pay staff wages above the National Minimum Wage, helping us attract and retain skilled professionals who deliver excellent care.
Residents are given two months’ written notice of any fee changes. Fees may also adjust if a resident’s care needs evolve or if they choose a more premium room.
In recent years, fee increases have averaged around 5%, reflecting inflation and our commitment to fair wages. However, significant changes in legislation or regulations, such as new staffing mandates, may require additional adjustments outside the annual review.
We’re dedicated to balancing top-quality care with transparent and fair pricing for our residents and their families.
5. Are there Financial Support Options as Fees Rise?
While it’s rare, residents can consider applying for NHS Continuing Care Funding if their care needs become highly complex. However, this is uncommon since we are a residential care provider, not a nursing home.
Another option is Attendance Allowance, a tax-free and non-means-tested benefit for personal care. It is available at a standard or higher rate, depending on your needs, and can be reassessed if your circumstances change. For more details, visit Age UK or apply directly through the Government’s official website.
Have more questions?
If you have more questions about our fees or services you can check out our advice page or directly contact us via our email forms on our website or call us at 01243833550.
