How do I pay for residential care?

If you have a mental illness you may find it hard to live in your own home and you may need to stay in residential care accommodation. This type of accommodation may be called a ‘care home’. Find out more.

Capital can include buildings, land, premium bonds, shares and savings that you own. You may own a property with someone else. Unless this is land, the local authority treats you as owning half of it, even if you did not pay that much towards it. This will change if there is evidence that you don’t own half.

Your income can include most benefits and personal pensions. We explain how local authority will assess your income if you need to go into a residential home.

If you have to pay towards the cost of your residential accommodation, your income should not fall below the ‘personal expenses allowance’ (PEA). The personal allowance is currently £24.90 a week.

Residential care top-up fees are the difference between your personal budget and the cost of the care home you want to go to. Find out more about top-up fees.

If you are moving in to a care home it may become your home for the rest of your life. If you own a property that is classed as ‘capital’ the local authority will ask you to pay towards the cost of your care home. This might mean you have to sell your property to pay for your care. A DPA allows you to delay selling your home to pay for your care.

When you are discharged from certain sections of the Mental Health Act 1983 (MHA) you go onto a Section 117. This means you can get free aftercare in the community. If your care plan says you need to be in a care home then your costs for the care home may be free.

If you feel you cannot afford the residential care amount that the local authority is charging you, you should talk to the person who did your assessment. You can ask for a review of your situation.