Financial & Legal News

Later life care could cost £1,000 a week

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Covid-19 has highlighted the social care system an important political subject whether it's funding, healthcare or the financial planning involved in paying for years of care for yourself or a family member.

Most recently, the government has announced that it is considering a new approach to the care funding crisis – they are considering taxing the over 40s more through the National Insurance system.

This is the latest in a long line of solutions suggested by various governments over the years. Some of you might remember the so-called ‘dementia tax’ preceded by the ‘death tax’, solutions that were floated by governments before being gunned down by the opposition.

In 2018-19, local authorities spent over £22bn on social care. While this might sound substantial, it’s actually less than the amount spent a decade ago. And this is against a backdrop of an elderly population with rising care needs.

Many don’t expect to need care, but the costs are real

Current figures suggest that around 70% of older people receive some sort of care, with more needing it but not receiving the support they require.

Care requirements range from an hour’s assistance at home to full time nursing home care. As a result, costs vary dramatically. 

Estimates place the hourly rate for at-home assistance at around £20. There may also be extra equipment costs depending on individual needs. 

At the other end of the scale, those who live in care homes full time without government assistance pay an average of £645 a week for basic residential services. However, specialist care costs more. Dementia care in a specialist home comes to around £900 a week. Costs vary between regions – in the East of England the bill for this kind of care was an average of £1,060 a week.

How is care funded?

There is state support on offer, but only for those with total capital assets worth less than £23,250. Different limits and rules apply in Wales, Scotland and Northern Ireland.

When a person needs care, the local authority will assess them based on the value of their total assets, including property. The authority will then inform the person of the amount they will need to contribute to their care.

At present, less than a third of those who need care are fully funded by their local authority.

Over the years, the cost of long-term care can easily rise into the hundreds of thousands, yet barely a third of over 55s have plans to cover these costs.

Pearson Solicitors and Financial Advisers can help with all aspects of financial planning, but funding care home costs is also something we have helped families with. Another aspect of our services looks at any care home funding that has been mistakenly paid. We are one of the few firms locally to have an expert in this area of law, solicitor, Michael Talbot.

If you need advice on anything to do with care home funding, if it's been mistakenly paid, if you believe you should get more assisted funding, or if you simply want to plan for the day you or a family member might need it then call us on 0161 785 3500.


Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.

Written by Michael Talbot


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