How to Arrange Care as a Self-Funder: Step-by-Step Guide

Category Financial Help for Seniors

How to Arrange Care as a Self-Funder: Step-by-Step Guide

For many older adults and their families in the UK, arranging care means paying directly from personal resources. This is known as being a self-funder. If your savings, income, or property assets place you above your region’s financial thresholds, you will be expected to cover the full cost of care.

This guide provides a step-by-step overview of how to arrange care as a self-funder, the options available, and how to ensure your money is used effectively.

Step 1: Confirm Your Self-Funder Status

Before arranging care, you must know whether you qualify as a self-funder. This follows a care needs assessment and a financial assessment conducted by your local authority.

If your savings and income are above the upper threshold, you will pay for your own care.
Property may also be included if you need residential care.
If your resources fall later below the threshold, you may become eligible for support.

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Step 2: Decide How to Pay for Care

As a self-funder, you can use different types of personal resources:

Funding Source	Description	Considerations
Savings	Using personal savings or investments to pay for care directly.	Simple and flexible, but savings may run out over time.
Income	Pensions, annuities, or other regular income streams.	Reliable but may not fully cover care costs if needs increase.
Property Value	Releasing funds through equity release or deferred payment agreements.	Provides access to capital but impacts inheritance planning.
Insurance Products	Immediate needs annuities to secure guaranteed lifetime care payments.	Useful for budgeting long-term, but requires an upfront lump sum.

Step 3: Choose How to Arrange Care

Self-funders typically have two main options when arranging care:

Arrange care independently

- Research care providers on your own.
- Compare costs, services, and quality.
- Pay directly to the provider.

Ask the local authority to arrange care on your behalf

- Some councils allow this service.
- You remain responsible for costs, but the authority manages contracts and billing.
- Not all councils offer this option, and some charge administration fees.

Step 4: Review Eligibility for Benefits

Even if you are a self-funder, you may still be eligible for additional support such as:

Attendance Allowance (if above State Pension age).
Personal Independence Payment (PIP) (if below State Pension age).

These benefits are not means-tested and can help reduce the financial pressure of paying for care.

Step 5: Monitor Your Financial Situation

Circumstances change. If your assets fall below the threshold, you may qualify for partial or full local authority funding. Review your finances regularly and notify your local council if your resources drop below the relevant limit.

FAQ – Arranging Care as a Self-Funder

What does it mean to be a self-funder?

A self-funder pays for their own care costs because their savings, income, or property assets exceed the local authority thresholds.

Can the local authority help me arrange care if I am a self-funder?

Yes, in some cases. Councils may arrange care services on your behalf, but you remain responsible for paying the full cost.

Do self-funders qualify for any benefits?

Yes, self-funders may still be eligible for Attendance Allowance or PIP, which are not means-tested.

What happens if my savings run out?

If your assets fall below the thresholds, you may qualify for local authority support. A new financial assessment will be required.

Is property always counted in financial assessments?

Property is usually included for residential care but not for home care if you continue living in your home.

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