Paying for care services at home

Where we are able to assist you with care needs, a financial assessment will be required. The financial assessment is completed to determine your contribution towards the cost of any care agreed.  

The assessment takes into account:

• your total weekly income
• LESS any income that should be disregarded
• PLUS any tariff income from capital
• LESS your Minimum Income Guarantee (MIG)
• LESS any necessary household expenditure which is allowable
• LESS any additional expenses you may have as a direct result of your need, this should be identified as a need in your care plan and is known as DRE
• EQUALS your contribution towards care (known as weekly client contribution). The client contribution figure is the maximum weekly amount you will be asked to pay toward the cost of your care

All elements of the above formula are explained below.

You will either pay:

• the total weekly cost of your care, if this is less than your client contribution, or
• the assessed client contribution if this is less that the total weekly cost of your care, or

For example, if the assessed client contribution is £40 per week and the cost of care is £150 per week, the person would pay £40 per week OR if the assessed client contribution is £40 per week and the cost of care is £35 per week, the person would pay £35 per week.

Please note: Where the assessed client contribution is either nil or a negative figure, the person would not be required to contribute toward the cost of any care and support.

The processes that need to be completed are as follows.

Your Care Manager will arrange to discuss your needs and goals with you to understand your situation fully.

This assessment could identify a number of outcomes, for example:

• No care and support needs identified
• Signposting to other agencies/charities where appropriate
• Equipment purchase or provision of equipment which could assist with the needs identified
• Care and support in the home
• Day Care/Day Centre attendance
• A requirement to identify suitable alternative accommodation which may include:
  • Supporting living
  • Sheltered accommodation
  • Residential accommodation , for example, a nursing or care home

Please note: The following information is provided for individuals where care at home or in the community is identified.  

Following an assessment of care needs, where applicable, the Care Manager will apply to the Local Authority, on your behalf, for the authority for a contribution towards the care costs to be considered. 

When this agreement is in place, you will be contacted in order to discuss the care package being sourced and when it can start. 

Please note: The Local Authority may only pay a contribution toward the cost of your care and you may also be required to pay a contribution, as explained below.   

If care and support needs have been identified, the Care Manager will refer your details to the Financial Assessment & Benefit (FAB) Team. The FAB Team will make contact to obtain a full financial declaration from you.

The information that will be required is as follows:

• details of your income, benefits, capital, savings
• details of any other investments along with details of any property, land or other assets you own except any property you remain living in as your main, only home
• details of certain household expenses
• details of any disability related expenses you may have

The financial declaration form can be completed online.

We can also send a form by post or email if you cannot access the online form.

You will be required to provide evidence of all items declared on the form.

In cases where an individual lacks capacity to deal with financial matters, there will be a requirement for someone to act under a Registered Power of Attorney (POA) or Deputyship order or as Department for Work & Pensions (DWP) Appointee.  

DWP would only be an option in cases where an individual who lacks capacity has no capital, assets or property ownership and only receives income that derives from state benefits.

You can visit the Government website and use the search tool to find more information regarding Attorney, Deputy and DWP Appointee and how to make an application.

You will also find details of your responsibilities on the Government website along with information around Giving gifts when you are acting as a financial representative for someone.

If you are unsure regarding the capacity of an individual, you should seek further advice from their GP or Care Manager.

You may choose to refuse to make a financial declaration. In such cases the individual would be assessed as liable to pay the full cost of their care. You may however request that a full financial assessment be completed at any time in the future.

All savings, capital, assets and investments of any kind must be declared.

Capital investments that include an element of life insurance may be disregarded from our assessment of capital.

Capital held in joint accounts will be apportioned equally between the joint account holders. You may wish to seek independent financial advice with regards to managing joint accounts.

From April 2024, the Government  determine that if you hold over £23,250 in total capital, savings and other investments, you will be classed as self-funding and will be required to pay the full cost of your care.

You will be asked to sign a declaration confirming that you have above the capital threshold. Should you refuse to sign the declaration, you will be assessed as liable to pay the full cost of your care due to non-disclosure of information.

Approximately 1 to 2 months before your capital reduces below the £23,250 threshold, you should contact the Adult Care Team by calling 01793 445500 to advise that the capital is depleting. They will refer your details to a Care Manager to start the process of arranging a needs assessment.

You may continue to be charged the full cost of your care, by your care provider, until such time as the local authority have agreed they are able to make a contribution towards the cost of care. This contribution will be determined by the assessment of your needs and a financial assessment will be required to determine your contribution towards any care agreed.

Tariff income is calculated where you hold a capital balance between £14,250 and £23,250. Tariff income is calculated as shown below and is included as a weekly income in our assessment of your finances.

If your capital is assessed as below £14,250 there will be no tariff income. This level of capital is disregarded in full.

If your capital is assessed as being between £14,250 and £23,250, a tariff income will apply and is calculated as a £1 income for each £250 of savings, or part thereof, you hold above £14,250. For example, if you held total capital of £19,300, tariff income would be calculated as below:

• £19,300 less £14,250 disregard = £5050 divided by £250 = £20.02. This is rounded up to the next whole £ = £21/week tariff income.

If your capital exceeds £23,250 you will be assessed as liable to pay the full cost of your care.

Please note: The figures quoted above are determined by Central Government and are correct as at April 2024. The figures are subject to change.

If you own, or part own, any property or land other than a property you continue to occupy as your main, only home, this may have an impact on the financial assessment and you may be assessed as liable to pay the full cost of your care. If this is the case, we would advise you to seek independent financial advice regarding your options to fund care fees, secured against the asset.

All income should be declared. Certain income may be disregarded in the financial assessment. The assessment officer will consider any relevant disregards when completing the assessment.

Should you have anyone living in the property with you who is over the age of 18, for example a relative, spouse or partner of a relative, lodger, boarder or friend, they would be expected to make a contribution toward the household costs.

Where you have a lodger or boarder who pays a rent under a commercial rent liability, an element of that rent will be included as income in our assessment. You will be required to provide evidence of the rent that is paid (such as a tenancy agreement) and a breakdown of what the rent includes. For example, does the rent include all utility bill plus food and use of the room, room only or room and utilities?

Where you have an adult over 18 who is a relative or friend, and does not have a commercial rent liability, the amount they would be expected to contribute would be based on their gross weekly income. The amount they would be expected to pay is as determined by the Department for Work and Pensions (DWP) and is called non-dependant income. Where evidence of their income is not provided we will apply the maximum weekly contribution as per the DWP.

There are some circumstances when the assumed contribution from the relative or friend is expected to pay would be nil. For example, where the adult over 18 is a joint tenant or a joint owner of a property you both reside in OR where that adult is in receipt of certain state benefits such as Pension Credit Guarantee Credit.

The local authority is required to identify the minimum income you would require to meet you normal day to day expenses. This is called a minimum income guarantee and is determined using guidelines issued by the Department of Health. It is the minimum amount you would need to pay for normal utility bills, food and other day to day living expenses.

MIG is the minimum amount of your income we must ensure you keep to enable you to meet those day to day costs.

The MIG is calculated based on your circumstances, for example, age, any benefits received and whether you have any dependent children.

MIG is not intended to cover payments for rent, mortgage or council tax.

The local authority is required to ensure that you have additional money to cover the cost of certain household expenses such as payment of a mortgage or endowment policy linked to a mortgage, rent, council tax, ground rent or service charges.

Please note: If you receive benefit or other assistance to help you pay some, or all, of any of these expenses you must declare this. The council can only take into account the actual amount you pay after any benefit or other assistance is deducted.

The local authority is required to consider any additional expenses you may incur as a direct result of any need or disability, as identified in the assessment of need or care plan conducted by the Care Manager. For example, this could be assistance towards the cost of a cleaner or gardener you employ as you are unable to do these tasks yourself. DRE cannot be considered for any services that would be provided in another way. For example, incontinence needs and chiropody should be provided for by NHS.

The amount we consider may be a contribution towards the DRE expense and may not cover the full cost.

If care and support is provided at home, the individual has a choice as to how that is sourced, provided and paid for.

There are 3 options as detailed below:

• Direct service: a situation where we arrange a care provider to provide the required care/support. We invoice the person for payment of the persons client contribution towards the cost of the care.
• Direct payment: a situation where the person chooses to source the care themselves and pay for this from the allocated funds. The person is required to open a direct payment account which is used solely for the care budget. The local authority will pay the weekly assessed personal budget, less the assessed client contribution, to that account monthly. The person must pay their assessed weekly contribution to that account. The monies should then be used for the provision of their care. There is a requirement for the person to present accounts showing the monies deposited and spent from the account when requested to do so.
• Managed direct payment: if the person, or their financial representative, is unable to manage a direct payment themselves, they may choose a “managed direct payment”. This is where a company called Enham are engaged to manage the budget for them. In this instance, both the council and the person pay their contribution to Enham, and Enham make all payments on behalf of the person in respect of their care. Enham will also manage and provide audit information on the use of the Direct Payment when required.

When completing the financial assessment, the assessor will look to ensure that you are in receipt of all income and benefits you may be entitled to and you may be advised to contact the Department for Work and Pensions to request a review of your benefit entitlement.

Any additional income or benefit awarded as a result of this review could affect your weekly contribution toward the cost of any care. You have a duty to notify any change to the income or benefits immediately.

New income/benefit will be included in our assessment back to the relevant date.

In some circumstances we may include an amount in respect of benefit or income you are entitled to, pending the outcome of your application for this to be paid.

Should you fail to make an application for that income or benefit, the local authority may continue to include an amount as income you are entitled to and haven’t claimed, this is known as notional income.

The Care Act 2014 states that only the cared for person’s income should be taken into account. However, there are some circumstances where it is necessary to consider the income of a couple and complete a joint assessment, for example, where a couple receive joint income or benefits such as pension credit or universal credit. In a joint assessment we will apportion the income and certain household expenses accordingly.

There may also be circumstances where it may be beneficial for us to consider you as one of a couple and complete a joint assessment. Where this may be the case, we will invite a full declaration of joint income, capital and assets to enable us to apply the calculation that benefits you most.

If your spouse or partner does not want to declare their income, capital or assets, they are not required to do so however, we would then not be able to consider a joint assessment.

You have a duty to notify this department immediately should there be any changes that may affect our assessment.

This could include:

• changes to your income, benefits, capital
• changes in your household, for example, someone moving in or out of the property
• changes to any property ownership, for example, anyone moving out of a property you own including your changing address and/or selling a property
• a change of address
• any other change that may affect our assessment

You do not need to notify this department should the level of care you receive change. The level of care you receive is not a factor that is taken into account in our assessment.

We will look to conduct a regular review of the financial assessment. You can also ask for a review of the assessment at any time.

Please note: We reserve the right to backdate charges where a change of circumstances is not notified and is perhaps identified at a later date.