Financial assessment for residential or nursing care

We will assess your finances to work out how much you may need to pay when you move into a residential or nursing home.

We will only ask you to pay what you can afford.

If your income and assets are:

• If you have less than £23,250 in savings and other capital, you may be eligible for help with care costs.

• If you have more than £23,250, you will have to pay the full cost of your care.

If you choose not to complete the financial assessment or disclose your financial circumstances, we will assume you can afford to pay the full cost of your care.

A Financial Assessment Officer will contact you or your representative to complete the financial assessment.

They will ask for information about:

• Your income (pensions, benefits, etc.)

• Your savings

• Your bills (rent, mortgage, council tax, water, home insurance)

• Your expenditure (regular essential costs)

They will ask for evidence, such as:

• Bank statements (minimum of 2 years)

• Utility bills

• Receipts for expenses

• Details regarding the ownership of your home

In some cases, we may already have the necessary information from the Department for Work and Pensions.

If you are completing the application on behalf of someone, we will also need details of your power of attorney, deputy or financial representative. In this case, you will need to provide the following documents:

• Power of Attorney documentation

• Appointee forms

• Court of Protection Order

The Council follows the Care Act 2014 and statutory guidance (Care and support statutory guidance - GOV.UK) to calculate your contribution. The assessment is completed as follows:

Your weekly income

Plus

Tariff income (if your savings are above the lower limit)

Less

Personal Expenses Allowance (Lancashire Adult Social Care Policy Portal)

Less

Housing costs for Short Term Care (rent, mortgage, council tax, water, house insurance)

Equals

Assessed Contribution

We only take the value of your former home into account if you are moving permanently into a care home i.e. if you become a permanent resident. A permanent resident is one for whom the agreed intention is for the resident to remain in residential care.

We do not take it into account if:

• your partner, former partner or civil partner, unless you are separated and they still live there

• a relative who still lives there who

  • is aged 60 or over,

  • or is a child of yours aged under 18

  • or is incapacitated

• if you are only staying in a care home for a short time and you intend to go back to your own home later

If you are assessed as needing to move into permanent residential care, you may be entitled to the 12-week property disregard. This means the value of your property will be disregarded as capital for the first twelve weeks of moving into the care home.

You may not want to sell your home straight away. This scheme allows you to delay paying some or all of your care fees.

• Find out about the Deferred Payment Scheme

• Find out about the fees for this service 

The Council pays the care home on your behalf, and you repay later.

You may qualify if:

• You are in permanent care

• You own a home that is not disregarded

• You have less than £23,250 in savings (not counting the home)

• The council will place a legal charge on the property

We will treat your capital as follows:

• Below £14,250 – not included within the assessment

• Between £14,250 and £23,250 – we include tariff income (£1 for every £250)

• Over £23,250 – you will be assessed to pay the full cost of your care

We will send you a letter confirming your assessed contribution, including a breakdown of how it has been calculated.

The letter will include:

• Details of your assessed weekly charge

• Information on how you pay your assessed contribution

• A Direct Debit mandate

Please read your confirmation letter carefully and check all the information is accurate. If you have any concerns or questions, you can contact us at the details provided below.

We will review your financial assessment on an annual basis. This reassessment considers any changes to pensions and benefits, as well as any expenses you may have.

Your assessed charge is based on the information you provided during your financial assessment.

You can appeal if you think (including evidence):

• Your assessment has been calculated incorrectly

• Important information was missed

You should write to:

Senior Care Finance Assessment Manager
Care Finance Assessment Team
Exchequer Services
Lancashire County Council
PO Box 100
County Hall
Preston
PR1 0LD

It's important to tell us as soon as possible when there are any changes to your circumstances. If you do not, this may affect your contribution.

Tell us if:

• Your savings go above or below £23,250

• Your income changes

• A partner or family member leaves your household

• You sell your home

• Your financial situation changes for any other reason

We may reassess your charge automatically if your benefit changes.

Find out more about how we charge for care and support you receive while living at home:

• Financial implications of moving into residential care

• Large print financial implications of moving into residential care

• Residential care charging policy