Residential, Nursing & Dementia Care

Family run since 1984

Paying for Care

Peterborough Care Homes
Peterborough Care
Homes for the Elderly

Full Funding Sources

There are three main sources of funding for paying care home fees.

  • Self-funder - you pay the care home fee.
  • Local Authority - your local authority pay the care home fee.
  • NHS - the NHS pay the full care home fee. This is sometimes called NHS Continuing Healthcare.

If you are self-funding then you can choose to live at any home you wish that you can afford.

If you are Local Authority funded your choice of home will be restricted as local authorities set a maximum weekly fee they will pay. The level is set by each local authority.


You are responsible for paying all the care home charges.

However, you may be eligible for some financial assistance - Attendance Allowance and NHS-funded nursing care. See below for further information.

Local Authority Funded

Your Local Authority will pay care home costs if you met the financial criteria.

A financial assessment is undertaken to calculate how much you need to pay towards the cost of your care in a care home by looking at your income, savings and capital and will also provide advice on welfare benefits which you may be entitled to.

Your income and any savings or capital you have will still be taken into account. Savings thresholds for local authority funding in England for 2021/22: Lower threshold £14,250 and upper threshold is £23,250

  • Lower threshold: if your capital (savings and assets) is below the lower threshold, the local authority may cover the full cost of your care.
  • Upper threshold: if your capital is above the upper limit, you will usually have to pay for your own care.
  • Between upper and lower: If your capital is between the upper and lower thresholds, you will be eligible for partial financial support, but you will have to cover some of the costs yourself.

If you expect to require Local Authority funded care then contact your Local Authority Social Care department as soon as possible.

Care home costs and top ups

The cost of a care home can vary from home to home. Your Local Authority has a “usual rate” that they are prepared to pay.

  • If there are suitable care home placements available at the Local Authority’s usual rate but you choose a care home that has a higher weekly cost than this, and you are not funding the cost of your care yourself, then you may need to ask a family member or other third party to make an additional weekly “top‑up”. This will cover the difference between what you will need to pay from your weekly income, the Local Authority contribution, and the total cost of the care.
  • If you make an arrangement with a care home that includes payment of a top‑up, it is very important that the Local Authority are aware of this and include these amounts in your funding contract with the home to ensure that you are not charged unfairly. If the person making these extra payments cannot continue to make these in the future, we may not automatically make up the difference, and you may need to think about moving to a less expensive home if the home will not accept a lower rate – but this would only be considered as a last resort.
  • If you arrange a place in a care home on a self-funding basis, without the Local Authority assistance, and the care home fees are higher than we are usually prepared to pay, you will need to think about how the fees will be paid if your capital drops below the funding threshold level in the future.

NHS Continuing Healthcare

NHS continuing healthcare is the name given to a package of care that is arranged and funded solely by the NHS for individuals who are not in hospital and have been assessed as having a “primary health need”.

If you are eligible, you can receive NHS continuing healthcare in a care home. As well as healthcare and personal care, the NHS will pay for your care home fees, including board and accommodation.

NHS continuing healthcare is free, unlike social and community care services provided by local authorities. It is not means-tested and is paid regardless of your financial situation.

Who is eligible for NHS continuing healthcare?

To be eligible for NHS continuing healthcare you must be over 18 and have substantial and ongoing care needs. You must have been assessed as having a “primary health need”, which means that your main or primary need for care must relate to your health.

Eligibility for NHS continuing healthcare does not depend on a specific health condition, illness or diagnosis, who provides the care, or where the care is provided.

If you have a disability or if you have been diagnosed with a long-term illness or condition, this does not necessarily mean that you will be eligible for NHS continuing healthcare.

To find out whether you are eligible for NHS continuing healthcare, your care needs will be assessed. Your Local Authority Adult Social Care team can assist with explaining the process.

Funding Contribution Sources

There are two national funding contribution sources that pay a set weekly amount to assist in paying care costs.

  • Attendance Allowance - paid by the Department of Work and Pensions (DWP).
  • NHS-funded nursing care - paid by the NHS.

There are rules for eligibility for both.

Attendance Allowance

Attendance Allowance is a benefit that helps with the extra costs of long-term illness or disability, which can be either physical and/or mental. It is for people aged 65 and over.

How much is Attendance Allowance worth?

There are two rates of Attendance Allowance. For 2021/22 these rates are:

  • Higher £89.60 per week
  • Lower £60.00 per week

You will be paid the higher rate of Attendance Allowance if you meet one of the following criteria:

  • you satisfy both the daytime and night-time tests
  • you are terminally ill (someone is classified as terminally ill if they are not expected to live longer than 6 months)

You will be paid the lower rate of Attendance Allowance if:

  • you satisfy the daytime or night-time tests

The Criteria

Attendance Allowance can be paid if you need help with your personal care or someone to check that you are ok.

Daytime test

To satisfy the daytime test you need to show that you reasonably need either one of the following:

  • frequent help with personal care throughout the day (ie about three times or more)
  • someone to check on you continually (ie frequently or regularly) throughout the day to make sure that you are safe

Night-time test

To satisfy the night-time test you need to show that you reasonably need either one of the following:

  • help with personal care at least twice a night, or once a night for at least 20 minutes
  • someone to check on you at least twice a night, or once a night for at least 20 minutes, to make sure that you are safe

Help with personal care

Personal care needs include help with things such as:

  • getting in and out of a chair
  • bathing and washing
  • dressing and undressing
  • help with medication and treatment
  • getting in and out of bed and sleeping
  • communicating
  • eating and drinking
  • seeing (ie you need someone to see for you)
  • breathing
  • using the toilet
  • walking

Needing someone to check on you

To qualify as needing supervision you must need someone to check on you regularly during the day. The checks must be to avoid a ‘substantial danger’ to yourself or others due to your disability.

For example, you may need such checks if you have memory loss, are in danger of falling, have poor awareness of potential dangers, or have serious behavioural problems.

Substantial danger may include situations such as falling, self-harm, violence towards others or a serious risk to your health should you be left unsupervised.

Eligibility in Residential Care

If you self-fund your care home fees then Attendance Allowance continues to be paid in full.

If your residential care is funded by the local authority or the NHS (Continuing Healthcare) then Attendance Allowance is not paid.

NHS-funded nursing care

NHS-funded nursing care is care provided by a registered nurse for people who live in a care home. The NHS will pay a flat rate contribution directly to the care home towards the cost of this registered nursing care.

Who is eligible for NHS-funded nursing care?

You may be eligible for NHS-funded nursing care if:

  • you are not eligible for NHS continuing healthcare but have been assessed as needing care from a registered nurse
  • you live in a care home registered to provide nursing care

How are needs assessed?

You should be assessed for NHS continuing healthcare before a decision is made about whether you are eligible for NHS-funded nursing care.

Most people do not need a separate assessment for NHS-funded nursing care. However, if you do need an assessment or you have not already had one, your clinical commissioning group (CCG) can arrange an assessment for you.

Outcome of the assessment

If you are eligible for NHS-funded nursing care, the NHS will arrange and fund nursing care provided by registered nurses employed by the care home.

NHS-funded nursing care is paid at the same rate across England. For 2021/22, the rate is £187.60 a week.

Seek Advice

Going into a care home is a major commitment for your future – it involves potentially committing to paying a considerable amount of money for your ongoing accommodation and care needs.

Seek advice on funding options. Do not assume that you will have to pay; or that someone else will pay.

People who can help.

  • Your Social Worker
  • Your Local Authority Adult Social Care
  • Your doctor (for NHS Continuing Healthcare)

Your Local Authority can also assist in navigating the options open to you. Please contact Head Office.

Care Home Brochures

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Care Enquiries Team

07949 809 730
01733 562 328
All our homes are open and accepting new care enquiries. For information on vacancies please contact the Care Enquiries Team by phone or email.