Quick guide to the financial jargon about elderly care
Funding later life is a minefield and the different financial jargon and language around different kinds of funding can make it hard to know where to start. We understand this at Age Space so have put together a guide with short explanations for all the most common aspects of funding, plus links to more detailed content if you want to know more about funding elderly care.
| Funded care | A needs assessment will have determined the type and level of care and support needed. This could range from more help with cleaning and shopping, to adaptations and disability equipment in the home; or residential and nursing home care and/or respite care. Funded care comes from the State through the benefits system, from the local authority and thirdly from the NHS. Click here to find out guide to help you. |
| Self-funded care | Paying for care is complex, partly because eligibility is means tested, but not for all types of care. If you don’t agree with the local authority suggestions as appropriate care – you will need to pay the difference via self-funded care. There are two routes to this type of funding: savings and investments or through the value of property. |
| Sources of care funding | Below are details of different funding available. At home funding • Attendance Allowance – the main benefit for help with personal care (from the Dept of Work and Pensions DWP) • Disability Living Allowance (DLA) for anyone aged over 68 in 2015, re-named as Personal Independent Payments (PIPs) for anyone under 68 (Available from DWP) • NHS Continuing Care (also available for care home residents) • NHS Intermediate Care (temporary payment after a hospital stay) • Local authority grants for home alterations • Carer’s Credit Constant Attendant Allowance (only available for those with a war pension or suffering as a result of an industrial accident) Care home funding • Local authority payment for residential care home (means tested) • Attendance allowance (if there is no LA or NHS funding contribution) • NHS Continuing Care (also available at home as above) |
| Equity release | Equity release is a way of unlocking cash tied up in the home, while continuing to live in there. A proportion of the value or equity of the home is exchanged for a tax-free sum. |
| Pensions | State pensions provide a regular income once a person reaches pension age. It is based on National Insurance contributions paid during working life. Many people supplement their state pension with a private pension. |
