Funding your care in a care home and what happens when your money runs out

What to consider if you will be funding your own care in a care home

Paying for care – independent financial advice

Paying for care can be an expensive and open-ended commitment. If you are paying the full cost of care yourself, you should seek independent financial advice. Look for a financial adviser with specialist qualifications on advising on the funding of long-term care. They will be able to explain all the costs and risk involved. And they should be able to help with other things such as setting up a Lasting Power of Attorney.

If you are currently receiving care, it is still advisable to seek specialist information and advice. There may be options available to you to protect your interests and those of your family.

  • MoneyHelper gives advice about all aspects of paying for care.
  • The Society of Later Life Advisers (SOLLA) is a not-for-profit consumer organisation. They help consumers and their families find accredited independent financial advisers who understand financial needs in later life.

The cost of care

The cost of paying for care in a residential home or a nursing home varies greatly. It is dependent on the level of care needed, such as complex nursing or dementia care, and other factors like having en-suite bathroom facilities or a larger room.

For a guide to current average costs in the South East of England you can use the residential care costs calculator on the Paying for Care website. In April 2024 the average cost of residential care in a care home in the South East for a year was around £50,000. That’s over a quarter of a million pounds for five years.

What happens if my money runs out?

If you have more than £23,250 in assessable savings and/or capital (usually including the value of your home), you will need to pay the full cost of care yourself.

It is particularly important that you and your family consider what will happen if your savings were to fall below the ‘capital threshold’ of £23,250.

Hampshire County Council, as your local authority, will assess your care and support needs. You will always be offered at least one care home place that will meet your eligible needs. However, the County Council will not necessarily pay for your current accommodation if this is more expensive than we would usually expect to pay to meet your assessed needs.

If you wish to stay in your current accommodation and decline a reasonable offer from the County Council, you may need to ask your family or another third party to pay a ‘top-up’ fee. A top-up is where a third party pays the difference between what the County Council would reasonably expect to pay, and the rate charged by your chosen care home.

When and how should I contact the County Council if my money is running out?

The County Council recommends that you get in touch with us when you have £40,000 of funds remaining. You should call us on 0300 555 1386.

This is to allow enough time for us to assess your care and supports needs and for a financial assessment to be undertaken. It also allows enough time for conversations about:

  • whether the care is at the same rate the County Council would pay
  • if not, whether someone is able to pay the difference (third party top-up)
  • if an alternative care placement needs to be sought.

Where can I find more information about paying for care?

More information for both professionals and those supporting individuals, as well as for individuals and their families, is on our Long Term Residential and Nursing Care website.

There is also more detailed information on Paying for Care in a Care Home.

More comprehensive information is available in our Capital Depletion Policy.