Who Pays for Care Home Fees in Wales?
In Wales, whether you pay for your own care home fees or receive funding assistance from your local authority is determined by a formal financial assessment, also known as a means test. This process considers your income, capital, and assets to work out how much you can afford to contribute. For residential care, there is a capital threshold of £50,000. This threshold is unique to Wales and differs significantly from other UK nations.
The Financial Assessment Explained
After a care needs assessment has confirmed that a move to a residential home is appropriate, a financial assessment is conducted.
- Capital above £50,000: If your total savings, investments, and other assets (including the value of your property in some circumstances) are worth more than £50,000, you are considered a 'self-funder'. This means you are responsible for paying the full cost of your care home fees until your capital falls below this threshold.
- Capital at or below £50,000: If your capital is at or below this limit, the local authority will help with your care home fees. Your capital below this amount is disregarded in the assessment. However, you will still be expected to contribute from your income, such as your pension and certain benefits. A minimum income amount is protected for your personal expenses.
Can the NHS Pay for a Care Home?
In certain situations, the NHS may be responsible for paying some or all of your care home costs. This is separate from local authority social care funding and is not means-tested.
NHS Continuing Healthcare (CHC)
NHS Continuing Healthcare is a package of care funded entirely by the NHS for individuals who have a 'primary health need'. This is for those with complex, ongoing health needs that are greater than their social care needs. A comprehensive assessment process determines eligibility. If eligible, the NHS will cover all care home fees, including accommodation and personal care.
NHS-Funded Nursing Care (FNC)
If you don't qualify for NHS CHC but have been assessed as needing nursing care, you may be eligible for NHS-Funded Nursing Care. This is a set, non-means-tested weekly payment paid directly to the nursing home to cover the cost of the registered nursing element of your care. For 2024/2025, the rate in Wales is £201.74 a week.
What Happens with the Family Home?
The family home is not always included in the financial assessment for residential care. Its value is disregarded in several circumstances, including if:
- Your partner or a close relative who is over 60 or severely disabled continues to live there.
- It's the main home of a divorced or separated partner.
- It's occupied by a relative under 18 who you have legal responsibility for.
If the property is unoccupied, its value will be included in the financial assessment after the first 12 weeks of permanent residency in the care home. In this case, you may be able to arrange a deferred payment agreement with the local authority to delay selling your home.
Other Financial Considerations
Deferred Payment Agreements This is an arrangement with your local authority that allows you to defer or postpone paying for your care home fees. The council effectively loans you the money, and the amount is secured against the value of your property. This means you don't have to sell your home during your lifetime to pay for your care, as the debt is paid back from your estate after you die or the property is sold.
Third-Party Top-Ups If a care home you choose costs more than the amount your local authority is willing to pay, it may be possible for a third party—such as a friend or family member—to pay the difference. The resident cannot normally pay this 'top-up' themselves if they are receiving local authority support. The person paying the top-up must sign an agreement with the local authority.
Funding Comparison at a Glance
| Feature | Local Authority Funded | Self-Funded | NHS Continuing Healthcare (CHC) |
|---|---|---|---|
| Eligibility | Capital at or below £50,000 | Capital over £50,000 | Assessed as having a 'primary health need' |
| Assets Considered | Income and capital; property may be disregarded initially | Income and all capital, including property | Health needs assessment only; not means-tested |
| Contribution | From income, minus Personal Expenses Allowance | Pays full fees until capital drops below £50k | No contribution required |
| Benefits | Most benefits (except mobility component) go toward fees | May still be eligible for benefits like Attendance Allowance | Not affected by means-testing |
Important First Steps
- Request a Care Needs Assessment: This is free and carried out by your local council to determine what type of care you need. You cannot access local authority funding without one. If care home residency is deemed necessary, this triggers the financial assessment.
- Seek Independent Financial Advice: The rules around care home funding can be complex. Consulting a specialist financial adviser can help you understand your options and plan effectively. The Society of Later Life Advisers (SOLLA) can help you find an accredited professional.
Conclusion
While the prospect of care home fees can be daunting, it is important to remember that there are multiple funding avenues available in Wales. The simple answer to 'are care homes free in Wales?' is no, for most people. However, your personal financial situation, combined with your assessed care needs, will determine exactly how your fees are paid. From local authority support for those with capital under £50,000 to the possibility of full NHS funding for those with complex health needs, a thorough assessment is the first and most crucial step towards securing the right care. For comprehensive information on social care charging in Wales, visit the official Welsh Government website.
If you have further questions, contacting your local authority's social services or a specialist advice charity like Age Cymru or Independent Age is highly recommended.
