What happens if my money runs out?
October 2009
Unfortunately for some people, this does happen. And if the worst comes to the worst, there’s no guarantee that you’ll be able to stay on in the same care home, or even the same room.
If your money is running out, you will need to contact your local authority to arrange a financial assessment so that they can determine whether they are responsible for funding your future care needs. If they are, they will only pay a certain rate so you’ll also need to check that your care home will offer you the same accommodation in light of what your local authority will pay.
It can be very upsetting to move to another care home, or even a different (often smaller) room. Taking specialist financial advice at the outset can help you preserve your capital and retain financial independence – and hopefully avoid any distressing situations like this in the future.
It is worth checking whether you are getting all of the benefits that you are entitled to, and if there are any charities that may provide a contribution.
Third-party top-up
There may be a shortfall between the care home's charges and the level of local authority funding. If this happens, your relatives may be able to top up your care costs, known as a 'third-party top up'.
The third-party will be asked to enter into a contract between themselves and the local authority to pay the difference between the local authority level of fees and those of the care home.
If they can’t supplement your financial needs and you can’t find any other sources of additional funding, then you’ll need to move to a home that falls within the local authority’s funding limit.
