Watch our YouTube video about financial assessments.

What happens in an assessment

We need to complete an assessment of your finances to find out if, or how much, we will pay towards the cost of your care and support

The components that determine how much you have to pay towards your care are:

• capital - your savings and assets
• income - benefits occupational pensions, annuity payments
• disability related expenses – if you’re living in your own home
• ongoing home costs - if you’re in temporary residential care

The assessment is made up of different sections as below.

The financial assessment will be carried out by one of our financial assessment officers. We can offer assessments:

• over the phone
• face-to-face meeting,
• in your own home
• at one of our offices

Capital

Each year, the Department of Health set the threshold against which your savings and assets are assessed. There are two thresholds known as the upper and lower capital limit.

Lower capital limit

This is currently set at £14,250. This means if you have capital below this amount it will not be used in the financial assessment.

Upper capital limit

This is currently set at £23,250. This means if you have capital above this figure, we will not help towards the cost of your care.

If you have capital above £14,250 but below £23,250 then tariff income rules will apply. This is where income of £1 per £250 or part £250 is included within the assessment based on your capital.

For example, your capital is £14,900 then £3 tariff income will apply as you have 3 x £250 or part £250 above £14,250.

Whether your home counts as capital

If you’re receiving care in your own home or are in temporary residential care, the value of your home will not be used in the financial assessment.

If you’re in permanent residential care, the value of your former home may also be disregarded while your wife, husband or civil partner is still living in the home. It’s also disregarded where a family member in receipt of certain disability benefits is living in the home.

If the property cannot be disregarded within the financial assessment, we may be able to consider offering a deferred payment arrangement to help you pay for your care.

Proof of your capital

We will ask you to provide information and evidence about your savings and any other assets you have. These could include:

• bank/building society/Post Office accounts
• property you own
• Individual Savings Accounts (ISAs), bonds or trusts
• life assurance bonds
• stocks and shares
• Premium Bonds
• cash

If you give away assets to avoid paying the full fees, the value of these assets will still be included in your assessment.

Income

There are slightly different rules depending on whether you are receiving care at own home or a residential care home.

Own home

If care is taking place in your own home, all income will be considered, except:

• the mobility element of Disability Living Allowance or Personal Independence Payment
• the savings credit element of Pension Credit.

Permanent residential care

Where care is permanently in a residential home, all income will be considered, except the mobility element of Disability Living Allowance or Personal Independence Payment.

In some circumstances, 50% of your occupational pension may be disregarded. This is subject to that amount being paid to your wife, husband or civil partner who is still living at home.

Temporary residential care

Where residential care is temporary, all income will be considered. The exceptions are any Attendance Allowance, Disability Living Allowance or Personal Independence Payments.

Proof of income

We will ask you to provide information and evidence of any money you have coming in including:

• state pension
• private pension
• occupational pension
• Disability Living Allowance/Personal Independence Payment
• Income Support
• Attendance Allowance
• annuities or trust income (savings income)

Disability related expenditure (DRE)

These only apply if you will be receiving care in your own home and will not be going into a residential home. DRE refers to costs you have as a result of your illness or disability For example:

• extra cost of electricity, gas or other fuel bills
• extra cost of water bills
• extra cost of laundry products
• assistive living items

We will also make an allowance for any rent, mortgage payment, service charge or Council Tax that you have to pay. This will be net of any benefits or allowances you may receive for these items.

Proof required

If you feel you do have an expense that should be considered as DRE you may need to provide evidence such as receipts or a letter from your GP or other health or social care professional.

Ongoing home costs

If you are receiving care while living in your own home, or are temporarily staying in a care home, we’ll make an allowance for:

• any rent
• mortgage payment
• service charge
• or Council Tax that you have to pay

This will be net of any benefits or allowances you may receive for these items.

Proof required

We will ask you to provide information and evidence of any money you spend relating to your home including:

• mortgage payments
• rent (that you pay)
• council tax
• service charges/ground rent, if these apply
• buildings insurance (that you pay)