There’s a growing number of people living with dementia in the UK. Nearly 944,000, to be precise. Many families are grappling with an often-asked question: Do dementia sufferers have to pay for their care home fees?

The short answer? Yes, most do. And it can be costly—shockingly so in some cases. But, as always, the devil is in the details. The reality is more complex, with funding options like NHS Continuing Healthcare and local authority contributions potentially easing the burden. But how does it all work, and can you or a loved one get financial help for care? This article dives deep into the nuances of paying for dementia care, breaks down who is responsible for the costs, and outlines how you can access the right support.

It’s a complex landscape, and if you’re facing this issue right now, it can feel overwhelming. Don’t worry. By the end of this article, you’ll have clear, actionable steps to navigate the system and secure the best care for your loved one.

The Cost of Dementia Care in the UK

Dementia care doesn’t come cheap, and the costs can quickly pile up. For basic residential care, the annual fee is about £35,000. However, if someone requires more intensive nursing care, particularly for advanced dementia, the costs can soar to over £50,000 per year.

Why is dementia care so expensive? The nature of the condition plays a big role. Dementia patients often need round-the-clock supervision, specialist care, and a carefully managed environment to keep them safe. The longer they live, the higher the costs. On top of that, the specific care needs of each patient can be incredibly varied, which means families often have to juggle not only financial but also emotional challenges.

Do Dementia Sufferers Have to Pay Care Home Fees?

Self-Funding vs. Local Authority-Funded Care

Let’s get to the heart of the issue: who pays? In the UK, dementia sufferers aren’t automatically entitled to free care. Whether you or a loved one pays for care depends on a financial assessment.

If an individual has assets (including property) worth more than £23,250, they will typically need to self-fund their care. This means covering the entire cost of care home fees out of their own pocket. On the other hand, if their assets fall below this threshold, the local authority may step in to provide some financial help. But even then, the person might still need to contribute part of their income towards their care.

NHS Continuing Healthcare (CHC) Funding

There is, however, an exception to this. For individuals whose care needs are primarily driven by a health condition—especially when those needs are complex, intense, or unpredictable—NHS Continuing Healthcare (CHC) funding could cover all costs.

CHC is not means-tested, which means it’s entirely based on the person’s health needs rather than their financial situation. But here’s the catch: dementia alone doesn’t guarantee eligibility. Many believe that because dementia is a medical condition, NHS funding will automatically apply. Unfortunately, this isn’t the case. The care needs arising from dementia must be primarily medical, not just personal, like help with dressing or eating.

Getting CHC funding can be tricky, with strict eligibility criteria, and many deserving applicants are denied. That’s why it’s crucial to know the ins and outs of this process, including how to apply and what to do if your application is turned down.

How the Funding Process Works

Free Care Services Available

Even if full care home fees aren’t covered, some services are available for free. These include:

• NHS Services: Any health-related services, such as GP visits and hospital care, remain free.
• Minor Home Adaptations: Changes to the home that cost less than £1,000, such as grab rails or ramps, are often provided free of charge.
• Reablement Services: For up to six weeks after a hospital stay, reablement care is offered to help someone regain independence.
• Section 117 Aftercare: If someone with dementia was previously detained under the Mental Health Act, aftercare services may also be provided without charge.

Financial Assessments and Their Impact

If someone is not eligible for CHC, they will undergo a financial assessment to determine how much they can contribute towards their care costs. The value of their home and other assets are considered unless a spouse or dependent lives in the property, in which case the home is excluded from the assessment.

The thresholds are clear:

• If assets exceed £23,250, the person will need to self-fund their care.
• For assets between £14,250 and £23,250, they will be asked to contribute some of their income towards care costs.
• Those with assets below £14,250 are usually fully funded by the local authority, though they may still need to contribute from their income.

The Impact of Dementia Care on Women

One striking fact is that dementia care disproportionately affects women. Nearly two-thirds of people living with dementia in the UK are women. This is partly due to longer life expectancy, but there are likely other biological and medical factors at play.

Because women often live longer, they face higher cumulative care costs, and with the gender pay gap and lower pensions, they are often less financially prepared. This highlights the importance of early financial planning for everyone, especially women, to ensure they can cover potential long-term care needs. We’re also covered when should a person go into care home, covering dementia care.

Planning Ahead for Dementia Care Costs

Setting Up a Power of Attorney

One of the most crucial steps in planning for future care is setting up a Power of Attorney. This legal document allows a trusted person to make decisions on behalf of someone who no longer has the capacity to do so. Without a Power of Attorney in place, even family members may struggle to manage finances or make important healthcare decisions for their loved one.

There are two types:

• Health and Welfare: For making decisions about medical treatments and care arrangements.
• Property and Financial Affairs: For managing finances, including paying bills, handling property, and accessing bank accounts.

Considering Long-Term Care Insurance

For some families, long-term care insurance might be a good option. This type of insurance covers care home fees or care at home, depending on the policy. While it’s not for everyone, it can provide peace of mind, especially for those worried about covering the high costs of dementia care.

How to Secure NHS Continuing Healthcare (CHC) Funding

Navigating the Application Process

Applying for CHC funding can be challenging, but understanding the process is key. Start by requesting an assessment from your local NHS Clinical Commissioning Group. The assessment will determine whether the individual’s care needs are primarily health-related. If the application is denied, don’t give up. There’s an appeals process, and many families successfully secure funding upon appeal.

Expert Support for CHC Applications

Organisations like Beacon or the Society of Later Life Advisers (SOLLA) can help families navigate the complex application and appeal process. Consulting experts early in the process increases the chances of securing funding.

Conclusion: Taking Control of Dementia Care Costs

Dementia care in the UK can be expensive, but there are options to ease the financial burden. While most people with dementia will need to contribute to their care, NHS Continuing Healthcare and local authority support may be available for those with severe needs. Early financial planning, understanding the system, and knowing your rights can make a big difference in securing the best care for yourself or your loved ones.

Take action now—speak to a financial adviser, set up a Power of Attorney, and explore your eligibility for NHS funding. You don’t have to face the complexities of dementia care alone. If you need additional support, reach out to team and care home managers can assist.