Residential and nursing care

Please be aware that if you are making an application for financial assistance to help reduce your care home costs, the law requires you to declare your true financial circumstances. Failure to do so could render you or your representative liable to legal proceedings.

Most income is counted in the financial assessment. In general, you must use all of your income to pay for your care home fees minus an amount for personal expenses.

How much am I allowed to keep for personal expenses?

The Government sets this amount each year. From April 2025 the amount is set at £30.65 per week.

If you qualify for extra benefits but you choose not to claim them, we must still include the money you could have claimed in your financial assessment. It is therefore in your own interests to claim your full entitlement to welfare benefits.

Capital and Savings

If you have capital and savings of £14,250 or less they will be ignored completely.

If you have capital and savings of above £14,250 to £23,250, they will be looked at to work out how much financial assistance you are allowed. For every £250 you have between £14,250 and £23,250, £1 will be considered as extra weekly income. This is known as tariff income.

Examples of capital include:

• Bank / Building society accounts
• Property
• Land
• National Savings Certificates
• Premium Bonds
• Stocks & Shares
• Trust Funds

The value of your property

Generally, the value of all property is counted in a financial assessment for permanent residents, however the value of the property you physically lived in as your main and only home immediately prior to going into a care home might not be counted for up to 12 weeks from the date of admission.

All other properties you own, but did not live in as your main and only home immediately prior to moving into a care home. The value of these properties, is counted as part of your overall capital assets from admission. The properties are not eligible for the 12 weeks property disregard, nor a deferred payment agreement.

Please note that any personal debt cannot be taken into account in your financial assessment.

Is the value of the home I lived in immediately prior to going into a care home taken into account?

If you are temporarily in a care home, the value of your own home is ignored. If you are permanently in a care home but your partner still lives in the property, your share of the value of the property is ignored. In certain other circumstances the value of the property may be ignored but this depends on individual circumstances which will be considered.

12 Weeks Property Disregard period for permanent residents

If you own the property where you physically lived immediately prior to going into a care home, and you have less than £23,250 in capital and savings , you are likely to qualify for financial assistance but only for the first 12 weeks of your permanent placement. This is because the value of the property you lived in is disregarded for this limited period. NB: the value of any other property you own is not disregarded.

However, other than in the circumstances already mentioned, the value of your own home will be counted after the first 12 weeks of your permanent placement.

Is my share of the value of our house still counted in my financial assessment if my spouse still lives there?

No. Your share of the value of your house is disregarded in your financial assessment until such times as your spouse moves house, passes away or the property is sold.

Making a decision about how you will fund your own care costs if you have a property.

During your first 12 weeks in permanent care you must decide how you intend to fund the cost of your care from week 13 onwards. For example, to sell your property, or perhaps to consider a Deferred Payment Agreement.

I have previously been funding all of my own care costs but I now need to apply for financial assistance. Will you count the value of my property?

Yes. In most cases, you are unlikely to qualify for the 12 weeks property disregard period if you later apply for financial assistance because you will already have been in permanent care for more than 12 weeks.

How much will I be liable to pay if I no longer qualify for financial assistance?

Your care home will tell you how much your overall weekly fees will be. You will be liable to pay the rate agreed between you and your care home. Your agreement with the care home will become a private contractual agreement with no involvement from the Council.

Do I have to sell my home to pay for my care?

Not always. If you do not want to sell your home you may be eligible to apply for an interest-bearing loan from us to help you pay your care home fees. The loan is called a Deferred Payment Agreement.

How does a Deferred Payment Agreement work?

A Deferred Payment Agreement is a way of deferring most of your care home costs which you then have to repay at a later date.

It is designed to help you if you have been assessed as having to pay the full cost of your residential care, but cannot afford to pay the full weekly charge because most of your capital is tied up in your home.

How does the Council loan me the money?

You must use your home as security. A loan can only be offered if your property is registered with HM Land Registry. You must ensure your property is registered before applying for a loan.

We will loan you an agreed amount of your weekly care and support fees whilst you have sufficient equity in the value of your home to cover your debt and any related charges.

Do I have to pay any weekly costs if I opt for a Deferred Payment Agreement?

Yes. We will complete a financial assessment to work out how much you must pay each week towards your care home fees from your available weekly income.

Can I rent out my house to help with my care costs?

Yes. You may decide to rent out your home and use the rental income to pay towards the cost of your care home fees. We will loan you the difference between the full cost of your care and the amount you are assessed to pay each week. You should seek independent advice about the additional responsibilities of becoming a landlord

How do I keep track of the amount I have borrowed?

You will receive a statement twice a year advising you how your loan is being calculated and what the outstanding sum on your Deferred Payment Agreement is.

Interest will be applied to your outstanding debt on a daily basis and fees apply.