Paying for your care

Residential care and support

Social care, unlike healthcare, is not free for everyone. You are responsible for the full cost of your care. Depending on your financial situation the council may contribute towards the cost based on a financial assessment, which considers what you can afford to pay.

How is the amount you pay calculated?

For temporary residential or nursing care: 

  1. We calculate your weekly income (including tariff income from savings) 
  2. From your income figure, we deduct a Personal Expense Allowance (this is a minimum income you need, and  is set by the Government)
  3. We then deduct your housing costs 
  4. The balance of the calculation is your weekly contribution towards your care. 

Permanent residential or nursing care: 

  1. We calculate your weekly income (including tariff income from savings) 
  2. From your income figure, we deduct a Personal Expense Allowance (this is a minimum income you need, and  is set by the Government)
  3. The balance of the calculation is your weekly contribution towards your care.  

Income includes any benefits, pensions (state and private), pension credit, employment support allowance, disability benefits, disability living allowance (DLA) – care component, personal independence payment (PIP) - care component, attendance allowance. Certain benefits are not counted as income, including mobility component of PIP or DLA, earnings, war benefits, working tax credit, child tax credit and a certain amount of the savings credit element of pension credit. 

Please note that some state benefits and allowances can change or stop after a certain period when someone moves into residential care or admission into hospital. 

Tariff income assumes £1 of income for every £250 of savings above £14,250 

Capital, savings, assets includes any property or land, all current and savings accounts, shares, ISAs, Investments and premium bonds. 

Allowances are set by Government, for people in residential care the "Personal Expense Allowance” and may change every year. This is meant to cover any additional expenses such as clothing, toiletries etc.  

Housing costs include rent, council tax and utility bills:

  • if you are in temporary care, housing costs may be considered as an expense when calculating the amount you pay (as set out above), as you may move back home.
  • if you are in permanent care housing costs are not considered as part of your calculation. If you own a property, it may be considered as part of your capital (and counts towards the £23,250 threshold). If this is the case you may want to consider a Deferred Payment Agreement, which enables you to defer the payment of some of your care charges against the value of your property, without having to sell it in your lifetime
  • in some cases the value of your first property may not be considered as an asset and taken into consideration. If you are in permanent care and have a spouse or civil partner living in the property, the value will not be considered when determining your charge. Your spouse or civil partner living in the property may also keep a proportion of your private pensions   

Property: If you are in permanent care and have a spouse or civil partner living in the property the value of the property will be disregarded from your assessment. In certain circumstances if a “relative” as stated in “Care Act 2014” can show an historical and continuous occupation of the property, is aged 60 or over, under 18 and is a child of the resident or is “incapacitated” in receipt of a disability benefit the property may also be disregarded.