18.1 People in a care home will contribute most of their income, excluding any earnings towards their care and support.
18.2 The treatment of capital and income will be undertaken in accordance with the detailed guidance set out in Annex B and C of the Care and support statutory guidance.
18.3 The cost of a person’s care may be higher than their means-tested contribution if they choose a care home that is outside of their personal budget. In these circumstances, the person, their family or friends may be asked to pay a “top up”.
For more information, please read: Choice of accommodation and top ups policy
Personal expense allowance
18.4 The regulations require the council to leave a person with a set amount of money to spend on personal items such as clothes and other items that are not part of their care plan. This is known as the Personal Expense Allowance (PEA).
18.5 There are times when a person may request a higher allowance from the council, such as when they need to maintain their home which is under a Deferred Payment. For information about the current PEA please see appendix 3
Residential care
18.6 Fees for residential care are payable at all times, even if the person has to spend some time in hospital or another setting.
18.7 If a person dies while living in a care home, the fees are payable until the date of death.
“Self funders”
18.8 If a person has above the capital limit, they may not be eligible for financial support from the council and should pay the full cost of their care. We call these people “self-funders”.
18.9 Generally, a person, or their family and friends can arrange the care themselves, without the council arranging the placement and will be expected to the pay the care home directly.
18.10 In some cases, the council may support with arranging a care home service for someone. When the council arranges the care, the person is expected to pay the council for their full cost of care.
18.11 A person may also be classed as a ‘self funder’ if they:
- Own a property and do not wish to enter into a deferred payment
- Own a second property, part of a property or have a beneficial interest in a property they do not live in
- Have any other capital or assets that are above the capital limit (see appendix 2)
18.12 When a person’s capital is nearing the upper capital threshold, they should contact the Adult Helpdesk, ideally when there are three months of expenses above the upper limit.
18.13 The Adult Helpdesk may refer the person to the social care teams to see if they are eligible for local authority support.
18.14 Once eligible needs are confirmed, the financial assessment will be requested to see if/when the local authority may support funding their care.
18.15 If the person qualifies for financial help through the council, we can only help from the day on which their funds fall below the capital threshold or the day they contact us (whichever is the later). Therefore, we ask people to contact us 3 months before they think they will reach the upper capital threshold.
People eligible for local authority financial support
18.16 If a person has under the upper limit in capital, they may be eligible for financial support from the council.
18.17 If a person has capital between the lower and upper limit, they will be asked to have a financial assessment and contribute from both their income and their savings until their capital reaches the lower limit, where they will only contribute from their income.
18.18 The council will pay the full cost of a person’s care to the care home and invoice the person or their representative for their client contribution.
18.19 The person or their representative will receive notification of the amount they should pay towards their care.
18.20 Generally the first 4 weeks is more expensive, and after 4 weeks, the on-going contribution is lower than when the person first entered into the care home. This is usually due to the change in DWP benefit eligibility when living in a care home.
18.21 The responsibility of informing the council of the changes in savings, is for the person or their representative as soon as they are aware of depleting savings.
18.22 A person may also request support from the council if they have under the upper capital limit, own their own home and enter into a deferred payment agreement.
Property and property disregard
18.23 If a person with care and support needs that are to be met in a residential care home owns a property, part of a property or have a beneficial interest in a property, the council will consider the property as capital, except when a property disregard applies.
18.24 When a person’s care and support needs are met in a care home, and they no longer occupy their main home, their main property will be fully disregarded when it has been continuously occupied before the person moved into a care home by:
- The person’s partner, former partner or civil partner (except when they are estranged) remain in the property
- a ‘qualifying relative’ (see definitions) who is over 60, under 18 or disabled
18.25 In some other circumstances, the council will exclude the value of a person’s home. The council will balance the use of this discretion with the need to ensure that it doesn’t maintain residents with assets at public expense.
18.26 People have a right to appeal the decision to include the value of a property as capital in the financial assessment process.
12-week Property disregard
18.27 If a person owns, or part-owns, or has a beneficial interest in a property that was occupied as their main home before needing care home accommodation, and the value is not disregarded in the financial assessment, the council will disregard (ignore) the value of the property capital for up to 12 weeks when a person first becomes a permanent resident in a care home. This is to give them time to decide how to fund their long-term care.
18.28 If the person qualifies for funding during the disregard period, the council will pay the weekly care home fees and invoice the person for their client contribution.
18.29 The person or their representative may request a deferred payment agreement from the council during the 12-week disregard period. This allows a person with under the capital limit to delay paying the full cost of their care before they sell their home or die.
18.30 When the property disregard period ends, the person will be responsible for paying their care home fees in full directly to the care home unless they enter into a deferred payment agreement, or another agreement with the council.
18.31 Apart from when the property sells within the 12-week disregard period, the person will be responsible for paying the full cost of their care fees from the date the property sells.
Please see the Deferred Payment Policy for more information.
Temporary or short stays in a care home
18.32 A person will be asked to contribute towards their short stay in a care home providing it is not reablement or intermediate care.
18.33 If a person has over the capital limit, they will be expected to pay the full cost of their care.
18.34 If a person owns their own home, their main property will be disregarded for this assessment if the short stay is temporary.
18.35 If a person owns a home that they have not lived in for 52 weeks, the value of the home will be counted as capital in the short break assessment.
18.36 Expense allowances will be made to ensure the person can maintain their home, such as standard charges for utility bills, so the home remains safe for the person to return to.
18.37 Where a person receives Attendance Allowance, Disability Living Allowance or Personal Independence Payments, this income is disregarded from the financial assessment under the temporary stay rule.
18.38 If a person has already had a financial assessment for a previous short stay or for recent care in their own home, a ‘light touch’ financial assessment may be undertaken, unless the person requests a full financial assessment.
