What is a financial assessment?
Unlike healthcare services provided by the NHS, social care is not always free. If the local authority provides you with support, it must assess your financial circumstances and decide whether you need to pay for some of the cost. If you do, the local authority will give you a copy of the assessment and explain how the decision was made.
Your financial assessment will generally be carried out at the same time as your needs assessment.
What does the financial assessment consider?
The assessment will look at your income and your capital. What is taken into account will depend on whether you're supported in a care home or not. Different local authorities may charge differently and you can ask for a copy of their charging policy.
|
What is income?
Income is usually regular payments that you receive. Most types of income will be taken into account, but a few are not.
Income includes:
- earnings from employment
- benefit payments
- pensions
- the mobility part of Disability Living Allowance or Personal Independence Payments (PIP)
- Child Tax Credit.
If you have income as part of a couple, then only your share will be taken into account. The assessment cannot consider the income of your partner or family members.
|
|
What is capital?
Capital is the money or other assets that you own, for example:
- savings
- property
- stocks and shares.
The assessment will add up all of your capital.
If you own a share in an asset (for example if you own a house as a couple or have savings in a joint account), the value of your share will be taken into account. The assessment cannot count assets that you don't own, for example savings of your partner.
If you own a home, the value of your home will not be taken into account if:
- You live in your home.
- You live in a care home, and one of the following people are living in your home:
- your partner
- a relative under 18 or over 60
- a relative who is incapacitated.
|
How much will I need to contribute from my capital?
The law is slightly different in England and Wales:
In England
|
What is the total value of your capital?
|
How much will you need to contribute?
|
|
Less than £14,250
|
You will not pay a contribution from your capital (but you may still be asked to pay something from your income).
|
|
Between £14,250 to £23,250
|
You will pay on a sliding scale.
|
|
More than £23,250
|
You will likely be asked to pay the full cost of your care.
|
In Wales
How much you need to contribute depends on whether or not you live in a care home:
If you live in a care home
|
What is the total value of your capital?
|
How much will you need to contribute?
|
|
Less than £40,000
|
You will not pay a contribution from your capital (but you may still be asked to pay something from your income).
|
|
More than £40,000
|
You may have to pay the full cost of your care.
|
If you live anywhere other than a care home
|
What is the total value of your capital?
|
How much will you need to contribute?
|
|
Less than £24,000
|
You will not pay a contribution from your capital (but you may still be asked to pay something from your income).
|
|
More than £24,000
|
You may have to make a contribution from your capital, but it will not be more than £70 per week.
|
