What is a financial assessment?
A financial assessment is carried out to calculate the maximum that you can be expected to pay for support services that are provided to you.
In England, Councils have upper and lower limits for financial help. The table below explains the limits.
| If you have savings |
What you will have to pay |
| Over £23,250 |
You will pay the full cost of your care and support |
| Between £14,250 and £23,250 |
You will pay a contribution from your income (such as pensions), plus a tariff income*, and we will contribute towards your care and support. |
| Under £14,250 |
You will pay a contribution from your income (such as pensions), with no tariff income*, and we will contribute towards your care and support. |
* Tariff income assumes you have an extra £1 per week in income for every £250 (or part of) you have in savings between £14,250 and £23,250. For example, if you had £15,000 in savings this equals £750 more than the lower capital limit of £14,250, therefore you would pay £3 a week in tariff income.
Only the income and savings of the person receiving care and support is included in their financial assessment. If any income, benefits or savings are awarded jointly only 50% will be taken into account in your financial assessment. Please refer to example 2 on the Examples of common financial assessments for care provided in your home page.
If you own the property that you live in, it will only be considered as an asset if you no longer live there as your main home, for example, if you move into extra care or a care home to meet your needs.
How will the financial assessment be arranged?
The Council want to make sure you can read and understand the information we share with you. The financial assessment team will contact you to arrange your financial assessment. This will usually be a telephone call but can be arranged as a face-to-face appointment if that is required.
If you find it hard to read our letters or if you need somebody to support you at your appointment, please let us know.
If you need information in braille, large print or an easy-to-read format, or if you would benefit from having a British Sign Language interpreter or advocate present, please let us know and we will aim to support this. If you experience hearing difficulty we can make provisions to support you.
What happens if I do not want to tell you about my finances?
If you choose not to have an assessment, you will need to pay the full cost of your care and support services.
Can somebody attend the financial assessment with me?
When attending a financial assessment, you can have people with you to support you and offer their views. This could be a carer, family member, friend or anyone else that you trust.
If you feel that you will find the financial assessment process difficult and you don’t have anybody to assist you, you can arrange for an advocate to attend the assessment to help you get your views across. If you think that this would be helpful you can contact Knowsley’s Advocacy Hub on 0300 3030 624 and arrange this.
What should I do if my financial circumstances change?
You must notify the Council if your financial circumstances change as this can affect your financial assessment. If you do not inform the Council of a change and, as a result of that change the amount you have to pay would increase, it will be backdated to the date the change took effect.
What if I give away some of my money?
If the Council decides you have given away some of your money or assets i.e. savings, income, or property, to avoid or reduce how much you may pay for the cost of your care, the Council might treat you as if you still had it. They may include the full value of any money or assets you have given away in your financial assessment and charge you accordingly.
Giving away money or assets, to avoid care charges is referred to as ‘deprivation of assets’. When the Council are considering whether giving away money or property has been a deliberate deprivation of assets, they will take the following points into consideration:
- If you knew you would need care and support at the time you gave away your assets
- If you knew you would need to pay towards the cost of your care
- If paying for care and support was a significant reason for you giving away your assets
- If you give away your savings, income, or property to a friend or relative, that person may become liable to pay the difference for the cost of your care
The Council must base its decision on facts, and they will ask you to provide any relevant evidence to support your reason for giving away money or assets. The Council will write to you explaining its decision.
Will my financial assessment be reviewed?
The Council will review your financial assessment every 12 months. This is done in April each year following annual increases to Department for Work and Pensions benefits.
If your financial circumstances change at any other time, you must notify the Council as this can affect your financial assessment. If you do not inform the Council of a change and, as a result of that change the amount you have to pay would increase, it will be backdated to the date the change took effect.
We also review the rates that we pay to our care providers each year. This may affect the amount you are charged for your care and support.
The Council will write to you to let you know the outcome of any reviews and provide a copy of your financial assessment.
What should I do if I disagree with the assessment or need more information?
If you do not understand how your charge has been worked out, or you do not agree with the amount you have to pay, you should contact the Financial Assessment and Charging Team who can explain the calculation to you. You can also ask for the assessment to be reviewed.
It is important that you continue to pay whilst a review is being considered.
What happens if I do not pay my social care charges?
You have a responsibility to respond to requests for information in relation to financial assessment applications and reviews, ensure invoices are paid in full and on time, and report any changes in financial circumstances promptly.
If you do not pay the amount that you have been assessed to pay, this may result in further action being taken to recover the debt.
What happens when I am discharged from hospital with a package of care and support?
In Adult Social Care, the Councils' approach to hospital discharge is focused on supporting people to regain independence through personalised approaches to care and support which actively promotes choice and control. It is important that you are discharged from hospital with the right support in place.
If you need a package of care and support after being in hospital, the Council will complete a social care needs assessment with you in order to understand what care and support you need. Some of the support you receive when leaving hospital may be free of charge during the period of assessment only. Once all longer-term assessments have been completed, you may be required to pay towards the cost of any ongoing care and support.
If you are being discharged from hospital to a care home and your preferred choice is not immediately available, you will not be able to remain in the hospital and the trust may enforce their 'No Choice Policy'. This means that where a 24-hour care home placement is needed to enable a discharge from hospital, you will be transferred to an appropriate care home until your home of choice becomes available. This is not a local authority policy. If you have any concerns about your discharge arrangements, please speak to a member of staff on the ward.
When you are discharged the Council will contact you to arrange a financial assessment to work out how much you will pay for your care and support.
