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Financial assessment

This is an assessment of your finances to calculate how much you have to contribute towards the cost of your care. The components that determine how much you have to pay towards your care are:

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

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.

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.

Disability related expenses

If you’re receiving care while living in your own home, within the financial assessment we may be able to make allowances for expenditure that you have to make due to your illness or disability. For example, it may be that your energy costs are higher than average.

In addition, we’ll 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.

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 .