How are my finances assessed?
If you have been assessed as needing residential or nursing home care you must complete a form about your financial position. You will have to provide evidence for verification of information like bank statements and share certificates etc. This lets us work out how much you can afford to pay.
How much will I have to pay?
When you have completed the financial assessment, we will let you know through the care manager how much you are assessed to contribute and how we have worked it out:
- if you have savings/investments over £23,250 you will pay the full amount for your residential care.
- if you have savings/investments under £23,250 we calculate a charge of £1 for every £250 above £14,250. We now add this amount to your income for the next set of calculations.
- if you have savings/investments of less than £14,250 this will not affect the next set of calculations.
After looking at your savings, if you do not have to pay the full charge we then go on to look at your income. We take away the following amount:
- Generally people keep £22.30 a week for personal expenses such as newspapers, toiletries and sweets. This amount is set by the Government and may change each year. Some people may be entitled to more than this, depending on their income.
For the first four weeks of a permanent stay in a residential or nursing home you will still be entitled to benefits such as Attendance Allowance, Disability Living Allowance, or the Severe Disability Premium part of Income Support or Pension Credit. We will take these benefits into account in your assessment of contribution for the first four weeks. If you are paying the full cost of your care yourself, you can continue to collect Attendance Allowance or Disability living Allowance.
In April each year, the Government increases the amounts they pay in state benefits. We will carry out a financial review for you each year, between April and June. We will then tell you how much you need to pay towards your care. If your financial circumstances change before we carry out the review, you should write and tell us.
What will I have to pay if my needs change?
If you have recently been given a medical assessment which states you need to move from residential to nursing care, you will be moved to a suitable home where qualified nursing staff can look after you. Your client contributions for nursing care will remain unchanged.
There would be no increase in your contribution either if you were moving from an older person’s residential home to a home that caters for people who need different care because they are elderly mental infirm (EMI).
Paying for extra care housing
There are three parts to the cost of extra care housing.
- the cost of renting your accommodation
- the service charges
- your support costs
The amount of rent, service and support charges you pay will depend on the size of your flat and the services you have been assessed for. You may be eligible for help with some of these costs. Ring the social care contact centre for further advice - it's at the top right hand side of this page.
Deferred payment scheme
The deferred payment scheme can allow you to put off the sale of your house if you go into residential or nursing home care.
Independent Financial Advice
It is strongly recommended that you take Independent advice about funding your residential or nursing placement. The Local Authority is only able to give information about charging, not advice about the most favourable option for you personally.
There are private companies that offer funding options for residential/nursing care to people with assets.
You may wish to approach Age UK (tel: 0800 169 6565) or the Society of Later Life Advisers (SOLLA) ( admin@societyoflaterlifeadvisers.co.uk or tel: 0845 303 2909) who are a not for profit organisation who specialise in this area. They may offer an advantageous alternative to Local Authority funding in some cases.
Read more about residential and nursing home care