What does 'self-funding' mean?

[JennSymo542]

This is a generic query and I apologise in advance if it is covered elsewhere...

If we repay the Local Authority for my Dad's full time residential care, is this the same as paying our care home fees and therefore are we right in calling ourselves "self funders"?

This sounds a bit stupid I admit but I'm growing concerned that my Dad is in receipt of a benefit that he should no longer be entitled to. The advice I've seen repeatedly online is that if we pay fees then we can continue to receive said benefit, but I'm wondering if by "paying fees" it means pay fees privately or that we have savings or a house sale or something, which we don't.

Currently, everything he gets (by way of his state pension etc) is ultimately paid back to the local authority on a monthly basis, barring the £26 weekly stipend that is allowed as per the standard regulation from the govt website.

I'm also seeking some advice from Age UK and the CAB, but I just wanted to ask here in case someone has experienced the same concern.

 

[jaymor]

If your father has assets above £23,250 then he would be considered to be self funding which means he would pay the care home for his care and he would keep his pensions. And attendance allowance if he gets it.

Below approximately £14,000 then the local authority take over the payment of care home fees. Your father then would give his pension to the LA, both state and private and attendance allowance would stop. The LA then make up the fees to the level the care home require. Your father would be left with the weekly allowance you mention.

So from what you say your father is not self funded. If this is the case then try to get this payment he has been receiving sorted as soon as possible, overpayments have to be repaid.

 

[Baker17]

If your father has assets above £23,250 then he would be considered to be self funding which means he would pay the care home for his care and he would keep his pensions. And attendance allowance if he gets it.

Below approximately £14,000 then the local authority take over the payment of care home fees. Your father then would give his pension to the LA, both state and private and attendance allowance would stop. The LA then make up the fees to the level the care home require. Your father would be left with the weekly allowance you mention.

So from what you say your father is not self funded. If this is the case then try to get this payment he has been receiving sorted as soon as possible, overpayments have to be repaid.

If your father has assets above £23500 he would be self funding and could continue to claim attendance allowance. When the assets go down
Between £23500 and £14250 the person in care becomes part funded by the council. What they pay towards their care is based on a calculation of their capital between these amounts, all of their private pension ( if they have a spouse the spouse is entitled to 50% of this private pension) and all but £25 per week of their state pension. The attendance stops when the £23500 level is reached and you must in form the DWP otherwise any overpayment will have to repaid.

 

[canary]

When you say that you are repaying the Local Authority using his pension etc, I am assuming that this sum does not cover the cost of the care home fees and the Local Authority is paying the rest (rather than it coming out of savings). If this is true, then this would make him LA funded. Self-funders are paying from savings etc and the LA does not contribute.

I am assuming that the benefit you mentioned is Attendance Allowance, which you keep if you are self-funded, but lose if you are LA funded. I think it would be a good idea to sort this out as soon as possible, or the amount that would have to be repaidd will mount up.

 

[JennSymo542]

Thank you everyone. I feel a bit stupid for not properly understanding the terminology but I think I just ran circles around myself and got confused.

He definitely doesn't receive AA but I think here is a care component which I'm now 100% sure he should not be receiving. I've been calling the DWP every day although understandably they are very busy right now but will keep trying to get through.

 

[JennSymo542]

When you say that you are repaying the Local Authority using his pension etc, I am assuming that this sum does not cover the cost of the care home fees and the Local Authority is paying the rest (rather than it coming out of savings). If this is true, then this would make him LA funded. Self-funders are paying from savings etc and the LA does not contribute.

I am assuming that the benefit you mentioned is Attendance Allowance, which you keep if you are self-funded, but lose if you are LA funded. I think it would be a good idea to sort this out as soon as possible, or the amount that would have to be repaidd will mount up.

Thanks for your input here. He does not get AA thankfully but I'm pretty certain he gets a small payment that he is no longer entitled to so I'll take this up with DWP as soon as I can get through to them.