Long-Term Care

Will the government support me?

The way care is funded works differently across the UK.

In England and Northern Ireland the situation depends on how much capital you have:

Less than £14,250: you will be entitled to support from the local authority. You won’t have to contribute from your capital, but you will be expected to contribute from your income. Third party top ups will be required to pay care costs which are above the local tariff rate.

More than £14,250, but less than £23,250: you are required to contribute towards the cost of your care at a rate of £1 for every £250 of savings between £14,250 and £23,250. This is known as ‘tariff income’.

More than £23,250: you will have to pay the full cost of your care.

In Scotland, the capital limits are as follows:

Less than £20,250: you will be entitled to maximum support from the local authority. You won’t have to contribute from your capital, but you will be expected to contribute from your income.

More than £20,250 but less than £32,750: you are required to contribute towards the cost of your care at a rate of £1 for every £250 of savings between £20,250 and £32,750.

More than £32,750: you will have to pay the full cost of your care. If you have less than £32,750 in capital, but a weekly income considered to be high enough to cover the cost of your care, you will have to pay all of your fees.

If you live in Wales, the capital limit varies depending on whether you’re paying for non-residential or residential care and is £24,000 and £50,000 respectively.

What is included in the means test?

Most assets and savings are included in the means test, but your home will be excluded if:

Your spouse lives in the property

A disabled relative lives in the property

A relative over 60 lives in the property

A child under 18 lives in the property

The person is in the first 12 weeks of needing permanent care

Care is temporary.

Can I give my property away?

There is no time limit for the Local Authority to question any transfer of property to establish whether the motive for transferring may have been to exclude the property from the means test.

What are the costs of long-term care? 

Costs are very different depending on whether you receive care in your own home or in a care home and also depend on how much support you need.

Latest figures from 2023 show that the average cost of a residential care home in the UK was almost £41,600²a year. On average nursing care will be an additional 3.5%³. These costs may not include things like day trips, hairdressing etc, so it’s important to check exactly what is included.

Is a cap on care costs being introduced?

In September 2021, Boris Johnson committed to cap lifetime care costs at £86,000 – although not including food or accommodation. He also planned to raise the asset threshold (the amount you can have before you receive council support for funding) to £100,000 and to pay for this with an additional National Insurance contribution known as the Health and Social Care Levy.

However, the Levy was scrapped and other measures have been delayed until 2025 without much further detail.

How can I plan for long-term care costs?

We can advise you on how best to plan for your potential long-term care needs by creating a plan specific to your individual circumstances.

This could be through investments, purchase of an annuity (lifetime income), property-related finance (such as equity release) or a combination of these.

If you’re facing the challenge of paying for care, either for yourself or a loved one, we can help you make the right choices, so do get in touch.

The value of investments may fall as well as rise. You may get back less than you originally invested.

Think carefully before securing other debts against your home. Equity released from your home will be secured against it. To understand the features and risks, ask for a personalised illustration.

¹ONS 2022

²^,3 LaingBuisson

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