There are many common myths about paying for care, from what support is available to whether you may need to sell your home. Here are ten of the most common misconceptions.

1. Care is free

Only in certain circumstances.

Firstly, it is important to understand the difference between social care and health care.

Social care refers to assistance with activities of daily living, such as washing, eating and mobility. It is the responsibility of your local authority, which will assess both your care needs and how much you are able to contribute towards the cost.

If you own a property or have significant savings, you may have to pay for all or part of your social care.

Health care, on the other hand, relates to medical needs and is the responsibility of the NHS. If your primary need is for health care, it is currently free at the point of use.

2. Information from my Local Authority or Clinical Commissioning Group will always be accurate

Local Authorities and Clinical Commissioning Groups aim to provide fair and accurate information.

However, the complexity of the current social care and healthcare systems, together with funding pressures, means that the advice provided can sometimes vary depending on where you live.

This is why independent, expert advice can be invaluable. It can help you understand your options, navigate the care system and ensure you receive any funding and support you may be entitled to.

3. If I run out of money, the State will pay for my social care

Again, only in certain circumstances.

Your local authority has a legal responsibility to assess your eligible care needs. If you meet the financial thresholds and your needs qualify, it must arrange care to meet those needs.

However, the level of funding available may limit your choice of care provider or where you receive care.

If you would prefer a more expensive option, a family member or another third party may need to pay the difference. This is known as a third-party top-up.

4. If I give away my assets, the State will pay for my care

Be careful.

If you deliberately give away assets or dispose of them to avoid paying for care, your local authority may decide that you have intentionally deprived yourself of assets.

If this happens, those assets can still be taken into account when assessing your ability to pay for care, meaning you may not achieve the outcome you intended.

5. It isn’t worth applying for NHS Continuing Healthcare (CHC)

If your care needs are primarily health-related and severe enough to be classed as a primary health need, you may qualify for free NHS Continuing Healthcare (CHC).

This can cover the full cost of your care, including accommodation within a care or nursing home.

Many people are incorrectly told they are unlikely to qualify. If your application is refused, it may be appropriate to seek professional advice regarding the assessment and appeals process.

6. Attendance Allowance isn’t paid if you move into residential care

It depends on your circumstances.

If you are paying your own residential care fees (a self-funder), Attendance Allowance will usually continue.

If your local authority contributes towards your care costs, Attendance Allowance will generally continue for the first 28 days, provided you were already receiving it before entering residential care.

7. Care at home is always more expensive than residential care

Not necessarily.

Receiving care at home means you do not incur accommodation costs associated with residential care.

In addition, where two people require care in the same property, live-in care or full-time home care can often work out significantly cheaper than both individuals moving into residential care.

8. I’ll have to sell my home to pay for care

Not necessarily.

The rules surrounding property and care funding are complex. However, if you or a dependant, including a spouse or civil partner, continues to live in the property, its value is generally disregarded during the local authority’s financial assessment.

In addition, if your remaining assets fall below £23,250, the local authority should disregard the value of your property for 12 weeks following the assessment, or until the property is sold if that happens sooner.

9. My spouse or civil partner can automatically make decisions for me if I lose mental capacity

Many people assume this is the case, but it is not.

If you have not put a valid Lasting Power of Attorney in place, your spouse or partner may not have the legal authority to make financial or legal decisions on your behalf.

This can create significant difficulties, particularly where jointly owned property or other assets need to be sold to pay for care.

10. If I’m paying for my own care, I don’t need a financial adviser

The value of regulated financial advice is often underestimated.

A suitably qualified financial adviser is the only professional who can advise you on the full range of financial options available to help pay for care.

They can also advise on specialist solutions, such as Immediate Care Annuities (also known as Care Fee Plans), which are currently the only way to guarantee payment of care fees for life.

Useful facts

  • The average annual fee for a residential care home across Britain was £33,488 in 2018/19, rising to £43,199 for residential nursing care. Fees can be substantially higher depending on location and provider.
  • The average cost of a stay in a residential care home is equivalent to 26 years’ worth of family holidays.
  • By 2030, one in five people in the UK will be aged over 65, with approximately 21,000 people aged over 100.
  • Women aged 65 have an average life expectancy of another 20.9 years, with around 9.8 of those years expected to be disability-free. For men, the figures are 18.6 years and 8.9 years respectively.
  • Nearly a quarter (23%) of people aged 65 and over worry most about their savings running out.
  • Homeowner equity among people aged over 65 has been estimated at £1.6 trillion.
  • One in 14 people aged over 65 and one in six people aged over 80 are living with dementia.
  • The number of people with dementia in the UK is projected to exceed one million by 2025 and two million by 2051.
  • Approximately four million people in the UK do not currently have access to the care and support they need.
  • Between 20% and 25% of people receiving home care in England fund it themselves.
  • On average, around 24% of self-funders eventually fall back on state support.