What Are Top-Up Fees?

What are ‘top-up’ fees?

Top-up fees are additional charges that families may need to cover when the local authority’s contribution doesn’t fully cover the cost of a care home. In such cases, the family is responsible for paying the difference, known as a ‘third party top-up agreement’, which usually requires local authority approval.

The need for a top-up fee arises after the local authority conducts a health and social care assessment and a financial means test. If the local authority determines that the individual qualifies for financial support, it will contribute to the weekly care fees. However, if this contribution falls short of the care home’s fees, a top-up may be necessary.

Do I pay for my own top-up fee?

Usually as the resident, you are not expected to cover the cost of a top-up fee. The local authority’s assessment of your care needs and financial situation will identify if you can fund your own care. Therefore, if a top-up fee is required, it is usually the family’s responsibility to cover the difference between the local authority’s contribution and the care home’s fees.

That said, there are specific circumstances where this might not be the case:

• Where you have a deferred payment scheme in place
• If you have a property to sell that is in a ‘property disregard period’

What is a means test?

A means test is the process by which a local authority evaluates a person’s financial situation to determine eligibility for weekly care contributions. Each country sets annual thresholds for this assessment, which are typically updated in April at the start of the new tax year. The means test considers your share of any joint assets but does not include your family’s finances.

What’s assessed in a means test?

The means test will look at the resident’s regular income such as earnings, benefits or a pension. Although earnings from paid work should be disregarded. It will also consider any capital and assets you have such as investments, cash savings and your property.

Advice about paying for care

Given the complexity of funding care, it’s important to get professional advice on the best way to fund the cost of care. We recommend consulting a care fees expert to make sure that you have explored all the options available to you.

To make this process easier, we have contacted Symponia, a national care fees planning specialist dedicated to the financial issues of later life. In particular the payment of care fees. To learn how Symponia can support you, please download their helpful handbook.