Examples of financial assessments for care provided in a residential or nursing home
Example 1
Client C is 90 years of age and lives permanently in a residential care home. The cost to the Council for arranging Client C’s care and support is £685.37 per week.
Section 2: Savings and investments
- Client C has £17,050.91 in savings. This equals £2800.91 more than the lower limit of £14,250. £2800.91 divided by £250 equals £11.20. Tariff income is rounded up, therefore;
- Client C has £12.00 in tariff income
Total tariff income from savings: £12.00
Section 3: Income (weekly)
- State Retirement Pension: £227.55
- Savings Pension Credit: £7.25
Total = £234.80
Section 4: Household costs (weekly)
Client C did not own their own property prior to going into a permanent residential care home, therefore has no applicable household costs.
Section 5: Personal Expenses Allowance
- Standard allowance awarded: £30.15
Total = £30.15
Section 6: Disregarded income
- Savings Pension Credit: £6.95
Total = £6.95
Assessment calculation:
- Total tariff income from savings: £12.00
- Plus, the total weekly income: £234.80
- Less weekly housing costs: N/A
- Less weekly Personal Expenses Allowance: £30.15
- Less disregarded weekly income: £6.95
Assessed weekly contribution = £209.70
Client C has been financially assessed as being able to pay £209.70 per week towards £685.37 weekly cost of their care and support. This is their assessed weekly contribution.
Example 2
Client D is 93 years of age, lives permanently in a residential dementia care home, and owns their previous property. Client D has entered into a Deferred Payment Arrangement with the Council. The cost to the Council for arranging Client D’s care and support is £791.09 per week.
Section 2: Savings and investments
- Client D has £15,533.52 in savings. This equals £1283.52 more than the lower limit of £14,250. £1283.52 divided by £250 equals £5.13. Tariff income is rounded up, therefore;
- Client D has £6.00 in tariff income
Total tariff income from savings: £6.00
Section 3: Income (weekly)
- State Retirement Pension: £164.18
- Guaranteed Pension Credit: £45.47
- Savings Pension Credit: £26.20
- Private/work Pension: £78.00
- Attendance Allowance lower rate: £72.65
Total = £386.50
Section 4: Household costs (weekly)
Client D owned their previous property prior to going into a residential dementia care home, therefore has ongoing household costs.
- Buildings Insurance: £2.69
- Standard Allowance for heating: £32.49
Total = £35.18
Section 5: Personal Expenses Allowance
- Standard allowance awarded: £30.15
Total = £30.15
Section 6: Disregarded income
- Savings Pension Credit: £6.95
Total = £6.95
Assessment calculation:
Total tariff income from savings: £6.00
• Plus, the total weekly income: £386.50
• Less weekly housing costs: £35.18
• Less weekly Personal Expenses Allowance: £30.15
• Less disregarded weekly income: £6.95
Assessed weekly contribution = £320.22
Client D has been financially assessed as being able to pay the full cost of their care and support per week because their previous property is taken into account within their financial assessment.
Client D has entered into a Deferred Payment Arrangement with the Council. Therefore, Client D has been assessed as being able to pay £320.22 per week from their income. The Council will contribute £470.87 per week – this is a debt that will build up and have to be paid at a later date, for example, when you sell your property. If you choose a deferred payment, it is important to note that interest and charges will apply.