Long term care funding dilemma needs financial planning.

The demand for places for long term care is increasing due to us all living longer. However, funding to cover the care home, which is mainly paid for by Local Authorities is under pressure. Many Local Authorities resources are limited. This is leading to them demanding places at below their cost price.

Care homes are having to look to self-payers to subsidise the cost of providing care to residents who are funded by their Local Authority. Self-payers, pay more a week living in the same homes, although they may have access to better facilities.

What financial support is available?

First of all, Local Authorities provide financial support to people whose savings are less than £23,250. This is called the upper capital limit or UCL. From October 2025 this will rise to £100.000 in savings. However, a person’s home will be excluded from the means test if a partner or spouse is still living there.

Some care homes are targeting self-payers only. This is adding to the problem by taking custom away from the homes which cater to both self-payers and Local Authority residents. So, this is resulting in these homes struggling to survive. Attracting the right staff is also a problem together with increased cost by having to pay the minimum National Living Wage.

The problem of rising demand and reducing supply is unlikely to go away in the short term. There is a strong case for those who are financially able to do so to make provision for their care. This may be by using-

• Income drawdown from  pension plans,
• Releasing equity from their homes through Equity release,
• Buying an “impaired life” annuity.

The above are just a few of the available options.

How Anstee & Co can help you with long term care planning.

If you are interested in planning for a secure financial future why not contact us today. The first appointment is at our expense and without obligation. Why not arrange a meeting today?

We have a team of expert independent financial advisers (IFA’s) who specialise in financial planning for later life. They have taken additional professional qualification in this area.

Our financial planners can meet you at a time and location that is convenient for you. This may be at your home, online or at one of our meeting rooms. These are located at-

• Kettering, Northamptonshire
• Stamford, Lincolnshire
• Wellingborough, Northamptonshire
• Market Harborough, Leicestershire
• Northampton, Wellingborough and Thrapston, Northamptonshire.
• London, Greater London.

Finally, if you have any comment or thoughts about this article, “Long term care funding dilemma needs financial planning.”, then please let us know.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. Anstee & Co is authorised and regulated by the Financial Conduct Authority (FCA).