Financial assessments and contributions

How do you calculate my contribution?

We take into account most income including pensions, benefits, annuities etc. We ignore certain benefits or part of them. We also consider a 'tariff income' if you have savings between £14,250 and £23,250. This gives us your total income. You will be granted a personal allowance of £30.15, which is deducted from the total income. The remaining income left after this will usually be the amount charged.

If you own a property that is taken into account, the calculations will be different. more information on this can be found in our deferred payments page.

How do you know my financial position?

We ask you or your financial representative to complete a 'financial assessment form' to provide us with full details of your financial position including your income and capital.

What happens if I refuse a financial assessment?

You do not have to give us information about your financial circumstances. However, if we are unable to assess your financial position then we will be unable to confirm you are eligible for financial assistance. This is likely to mean that you will need to pay the full cost for your placement.

If you refuse a financial assessment but later change your mind, please contact the financial assessment team on 0118 974 6000 (followed by option 5) straight away so that we can arrange one.

What if I have savings or capital above £23,250?

If your savings, investments and assets are more than £23,250 you will have to meet the full cost of your services. We can still help you apply for any benefit you may be entitled to, to help pay for your placement. Just contact the financial assessment team.

My savings are under £23,250, why do I have to contribute?

You are required to pay a contribution from your income such as pensions and benefits plus a ‘tariff income’ on any savings between £14,250 and £23,250. 'Tariff income' is a way of calculating a weekly income from all of your savings and investments. It is not based on the actual interest or dividends you receive.

If we assist with funding, we will pay the difference between what you have been assessed to contribute and the cost of the placement. 

For example, if we assessed that you need to contribute £200 per week from your income and the placement was £900 per week, the ‘Council funded’ element would be £700 per week.

How much will I have left once I have paid my share of the costs?

You will have a small personal allowance left to pay for items such as clothing, hairdressing, stamps etc. This amount is set each year by the government (current allowance is £30.15 per week). In addition, in certain circumstances you can keep an element of savings credit and any savings below the lower government threshold (currently £14,250).

Why is the personal allowance only £30.15

The Personal Expense Allowance is a national amount set by the Department of Health.

My partner still lives in our home, what will happen to them?

The value of the property your partner still lives in is not counted as capital in your financial assessment.

If you are married you can transfer 50% of your occupational pension(s). Your partner may need to apply for benefits in their own right to boost their income or help with rent and Council Tax. If you would like advice from us on what their benefit entitlement might be we will need to know their financial position. We can then discuss what benefits they may be able to apply for.

What does 'Deprivation of Assets' mean?

Giving away savings, property or other things to reduce your capital so that you reduce the amount payable for your care is known as ‘deprivation of assets’.

In these circumstances we would treat you as though you still have the capital. The person to whom you gave the assets may become legally liable and we would recover any unpaid charges from that person. This may involve proceedings in the County Court.

What if my financial circumstances change?

You must report any changes to us so that we can recalculate how much you should pay. We need to know if you move home or your financial circumstances change. For example if you start getting welfare benefits, or your investments and savings increase or decrease, you must let us know straight away as this may change your charge. Contact the financial assessment team to arrange a reassessment. If you are unsure what changes to tell us about please contact us for advice.

When will my contribution be reviewed?

We will normally change your contribution annually in April and review it following any changes of circumstances you advise us of.

What if I disagree with the calculation of my contribution?

• First of all, contact the financial assessment officer who has calculated your contribution and explain why you think the charge is wrong. Contact details will be included in the statement you receive following the financial assessment.
• If you are still not satisfied, you can contact the senior financial assessment officer to review the financial assessment.
• If you remain unhappy, you can raise the matter through our complaints process.