Funding advice

An outline

Exploring Funding Options for Care Costs

In order to make the process of selecting a care provider easier, it's important to consider the funding options available to you.We know paying for residential or nursing care is a factor that you have to consider when putting yourself and a loved one in care, so we've crafted an informative guide outlining the details of care costs, tailored to your or your loved one's needs.

For an even deeper understanding of care home fees in the UK, we also recommend exploring resources like Age UK – Care Home Advice or NHS – Care Home Advice

Additionally, you can always reach out to our friendly administrative team at your local St Martins Care home and we will provide personalised guidance around care home fees to your circumstances.

Navigating Residential Care and Nursing Homes 

At St Martins Care, our promise is to assist you at every stage of your journey in choosing the ideal care home for you or your loved one. 

Our first priority is always ensuring our care homes meet your specific needs, providing tailored care and support. 

But we also know that nursing home costs are going to be a consideration. That’s why our team’s expertise extends to advising you on the best funding strategies for affordable healthcare which can be custom-fit for your unique circumstances.

Accessing Specialised Care Homes

Before you or your family member joins us in one of our care homes, we conduct a comprehensive assessment, collaborating with the Local Authorities and healthcare professionals. 

After the assessment, we will know what type of care you or your loved one needs, whether that is ongoing residential or nursing support. At St Martins Care we offer dementia, nursing and residential care. Find out more here.

After this step, your social worker will write a recommended list of local care providers. 

This gives you the chance to visit and choose the most suitable option for you, paving the way for a seamless transition into your new home, turning it into a space comfortable for you.

This might also be where you start to consider paying for residential care or look into options for funding the specific care home you grow to love. We want to assure you there are options when it comes to financial support. 

Care Home Fees UK

According to carehome.co.uk the average monthly fee for a residential care home in the UK is £3,290, and dementia and nursing care can be more costly.

The location of the care home you choose may also affect the care home fees you pay, as certain areas can cost more, for example in London. All of our homes are located in the North East of England. 

Private care homes can also cost more. 

The first stage in this process involves your social worker conducting a financial assessment, and determining your eligibility for funding toward your care costs. 

Contributions towards paying for residential care are worked out based on your assets, taking into account your savings and property valuation (excluding a home occupied by your spouse or civil partner). 

The allocated contribution depends on your asset valuation, which will fall within defined thresholds tailored to different regions within the UK.


Thresholds for residential care funding (2021-22)


 Lower limitUpper limit
England     £14,250£23,250
N. Ireland£14,250£23,250
Scotland £18,000£28,750
WalesN/a£50,000


Assets above the Upper Limit cover the entire care home fees until they fall below it. On the other hand, assets below the Lower Limit aren't factored into nursing home costs. 

Contributions within these thresholds are supplemented by Social Services, with nursing care costs covered by the local authority, regardless of your asset valuation.

Utilising Income and Personal Allowances

Any incoming benefits or pension funds you receive will contribute toward paying for nursing home care, with the exception of a Personal Allowance which is approximately £22 per week. 

Self-Funding Options

Individuals who are assessed as ineligible for funding to pay for residential care by Social Services can opt for self-funded care services. 

Around half of the care home residents in the UK ages 65 and over fund their care home stays themselves.

Self-funders can pay their care home fees in several ways. These options include selling their home or renting it out. Those who sell their home can pay their care home fees by investing the money, putting it into a high-interest account or buying a care fee annuity.

On the topic of health insurance, there are currently no widely available insurance products specifically designed to cover paying for nursing home or care home fees. The closest alternatives are immediate care plans or immediate needs annuities, which can be structured to adjust for rising costs and/or inflation.

In England, Wales, and Northern Ireland, individuals who opt for self-funding when paying for nursing home care may have the option to receive assistance with their nursing care expenses through Funded Nursing Care (FNC) or Continuing Healthcare Funding (CHC).

FNC involves a fixed-rate contribution directly paid by the NHS to the care home, contributing toward the expenses associated with nursing care. On the other hand, 

CHC does not require means testing and covers all elements of a person's care expenses, including health and personal care needs, along with their nursing home costs.

Assisting your Care Costs

This breakdown considers many different funding approaches and aims to simplify the decision-making process for you regarding care providers and senior homes, ensuring a tailored solution for affordable healthcare.

If you have unanswered questions regarding care home costs, we would be happy to discuss these further with you, so please don’t hesitate to contact our supportive administrative team at your local St Martins Care home.

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