My Mum Started Handing Out £20 Notes Like Confetti – Here's What Dementia Really Costs

By HOAR Team 15 June, 2025 5 mins read 141 Views

I'll never forget the phone call from my neighbour. "Your mum's been giving twenties to every homeless person on the high street again."

That was 2019. We didn't know it then, but those random acts of generosity weren't just kindness – they were early warning signs of something much bigger brewing.

Dementia doesn't just steal memories. It obliterates bank accounts, destroys financial security, and leaves families scrambling to pick up the pieces. The Alzheimer's Society reckons it costs the UK £42 billion annually, but honestly? That figure feels conservative when you're living it.

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The Money Just... Disappears

About a million people in the UK are dealing with dementia right now. Could be Alzheimer's, could be Parkinson's – there are literally 100 different conditions that fall under that umbrella.

Here's what nobody tells you: your loved one will lose their bank cards. Constantly. They'll forget every password they've ever set up. Late payment fees will start appearing like weeds after rain.

Suddenly you're paying for taxis everywhere because they can't navigate public transport anymore. Meals on wheels become essential. The heating bill skyrockets because they're home all day, confused about whether they're hot or cold.

Then there's the big one.

Care home fees average £64,655 per year. That's more than most people's entire salary, just... gone.

If you're in England or Northern Ireland and have less than £23,250 in savings, your council might help. Might. They'll assess everything you own first, naturally. You get to keep a whopping £30.15 per week for yourself.

Wales is slightly more generous at £50,000 savings threshold, Scotland at £35,000. Still not exactly comfortable territory.

Power of Attorney: Don't Be an Idiot Like I Was

I waited too long to sort this out. Don't make my mistake.

A Lasting Power of Attorney lets someone you trust make decisions when you can't anymore. There are two types – one for money stuff, one for health decisions. You need both.

Without it? Your family gets stuck in legal limbo while you need care. Heledd Wyn from Rothley Law put it perfectly: "When someone loses mental capacity, their family have no automatic right to access bank accounts."

72% of over-65s don't have one set up. Mental.

Go to gov.uk/power-of-attorney right now. Download the forms, print them out, read the instructions twice because the signing order matters. Send it to the Office of the Public Guardian with £82 (£41 if you earn under £12K).

Get stuck? Call 0300 456 0300. They're actually helpful, surprisingly.

Free Money You're Probably Missing

Attendance Allowance pays up to £110.40 weekly. No means test. Just need to prove you need help at home because of a health condition.

Council tax discounts exist. Energy bill help too. Water companies have schemes. Your broadband provider probably has a social tariff you've never heard of.

Caring for someone 35+ hours weekly? Carers Allowance gives you £83.30 per week. It's not much, but it's something.

Here's a weird one: Carers Card costs £8 for two years at carerscarduk.co.uk and apparently saves members £240 annually through random discounts. Worth a punt.

Nationwide (even if you're not a customer) offers free dementia advice appointments with specialist Admiral Nurses at 200 branches. Didn't know that existed until last month.

Sibstar does debit cards specifically for dementia patients – £4.99 monthly, works with any bank, lets the power of attorney monitor spending through an app. Clever, actually.

Look, this whole situation is rubbish. But ignoring it won't make it disappear. Trust me on that one.

Frequently Asked Questions

How can I budget my money effectively?

To budget effectively, start by tracking your income and expenses to understand your spending habits. Set realistic financial goals, categorize your expenses, and allocate funds accordingly. Regularly review and adjust your budget to ensure it reflects your current financial situation and objectives.

What are credit scores and why are they important?

Credit scores are numerical representations of an individual's creditworthiness, calculated based on credit history, payment behavior, and debt levels. They are important because they impact the ability to obtain loans, credit cards, and favorable interest rates, affecting overall financial health.

What is the difference between saving and investing?

Saving typically involves setting aside money in a secure account for short-term needs or emergencies, while investing involves using money to purchase assets like stocks or real estate with the expectation of generating a return over the long term. Investing carries higher risks but offers the potential for greater rewards.

What is a budget deficit?

A budget deficit occurs when a government's expenditures exceed its revenues over a specific period, usually a fiscal year. This can lead to increased borrowing and national debt if not addressed through spending cuts or revenue increases.

What is the importance of financial literacy?

Financial literacy is essential for making informed decisions about budgeting, saving, investing, and managing debt. It empowers individuals to understand financial concepts, evaluate risks, and navigate complex financial products, leading to better financial stability and long-term wealth building.

What is the role of central banks in the economy?

Central banks manage a nation's currency, money supply, and interest rates. They implement monetary policy to control inflation, stabilize the currency, and foster economic growth. They also serve as lenders of last resort to the banking system during financial crises.

How does inflation affect the value of money?

Inflation refers to the general rise in prices over time, which erodes the purchasing power of money. As inflation increases, each unit of currency buys fewer goods and services, meaning that the value of money decreases in terms of what it can purchase.

Statistics

The average cost of raising a child in the U.S. is estimated to be around $233,610, according to the U.S. Department of Agriculture.
A report by Bankrate indicated that only 29% of Americans have a written financial plan.
A study by the National Endowment for Financial Education found that 60% of Americans do not have a budget.
A survey by the American Psychological Association found that 72% of Americans reported feeling stressed about money at some point in the past month.
Research by the National Bureau of Economic Research found that individuals who receive financial education are 25% more likely to save than those who do not.
In 2020, the average retirement savings for Americans aged 60 to 69 was approximately $195,000, according to Fidelity.
As of 2021, the average American household had approximately $8,400 in credit card debt, according to Experian.
According to a Gallup poll, 56% of Americans report that their financial situation is better than it was a year ago.

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How To

How To Plan for Major Expenses

Planning for major expenses requires careful thought and budgeting. Start by identifying upcoming significant costs, such as home repairs, medical expenses, or a new vehicle. Research the estimated costs associated with these expenses, and create a timeline for when the payments will be due. Develop a savings plan by determining how much you need to set aside each month to meet your goal by the target date. Consider using a high-yield savings account to earn interest on your savings. Regularly review and adjust your plan as needed, ensuring you stay on track to meet your financial obligations without incurring debt.