Financial guide to moving into a care home
Costs, charges and benefits 2014-2015
Local authority care homes
Local Authority Care Homes have a standard charge that is based on the actual cost of a person living in the home. This is the most anyone has to pay for a place there.
If you have capital of £23,250 or more, or if you have a state pension plus an occupational pension greater than the standard charge for the residential care or nursing care home, you will be required to pay the full standard charge. In all other cases you will be required to pay a charge based on your financial assessment.
Private and voluntary care homes
Private and Voluntary Care Homes charge according to the services and facilities they provide, where they are situated, size of room, and so on, and the charge for a place varies. However, the Council has, in consultation with care home owners in Calderdale, agreed a contract price that the Council will pay:
- Residential shared room - £374.99
- Residential single room - £393.95
- Residential EMI shared room - £393.95
- Residential EMI single room - £412.38
- Nursing shared room - £501.73
- Nursing single room - £521.76
- Nursing EMI shared room - £521.76
- Nursing EMI single room - £540.18
The above information applies from April 2014.
If you wish to take up a place at a private or voluntary care home charging more than these contract prices, a third party (friend, relative, charity) could arrange to pay the difference for you. This is known as a "Third Party Contribution".
If you are a person with other needs, such as a younger physically disabled person or a person with learning disabilities, the prices may vary.
Capital and savings
If you have capital of £23,250 or more, you will have to pay the full cost of a place until your capital falls below that level.
If you have between £14,250 and £23,250 you will be charged £1 per week for every £250 over £14,250. Your contributions will reduce as your capital (savings) reduces, unless you are claiming Pension Credit or Income Support. Below £14,250 your capital will no longer be assessed for residential or nursing care charges. (Different capital limits apply for Pension Credit and Income Support.)
It is important that you notify Calderdale's Revenues and Benefits Service – Charging Assessment Team if you have capital that changes between £23,250 and the lower Pension Credit / Income Support limit of £10,000.
If you enter Residential Accommodation as a permanent resident the value of your property will be disregarded for the first twelve weeks. This offers a 'breathing space' between entering a care home on a permanent basis and deciding how best to pay for your care. If the property is sold within the twelve-week period then this disregard effectively ceases from the date of sale.
The Personal Allowance for 2014/2015 is £24.40 per week. The Personal Allowance is for you to spend on things of your choice, for example stationery, personal toiletries, treats, presents for friends and relatives.
Attendance allowance / Disability living allowance (care component)
In most cases Attendance Allowance / Disability Living Allowance (care component) is paid for the first four weeks only from when you become a resident. Then the allowance is withdrawn.
If you are paying all the fees at a Private or Voluntary run home, without local authority funding, both types of allowance can be paid indefinitely. The values of allowances in 2014/2015 are listed in the following tables.
|Attendance and Disability Living Allowance values|
|Allowance||Higher rate||Middle rate||Lower rate|
|Attendance Allowance||£81.30||not applicable||£54.45|
|Disability Living Allowance|
|Disability Living Allowance|
In most cases, if you get Disability Living Allowance (mobility component) when you first go into a residential care or nursing care home you are able to retain the allowance indefinitely and it is disregarded as income for your financial assessment.
If you are getting a State Pension when you go into a Care Home it will be included as part of your income in your financial assessment. The value of State Pensions in 2014/2015 is:
|Value of State Pensions in 2014/2015|
|Married woman's based on husband's contribution||£67.80|
If you receive graduated benefit and / or additional pension based on SERPS, your pension will be at a higher amount than the basic rate.
If you are married to a partner who will not be living at the same care home as you, you can have half of any occupational pension you receive disregarded if at least half of the pension is being passed on to your spouse.
Unless half of the pension is actually being passed to your spouse, the total value of the occupational pension will be included in your income for financial assessment.
Pension credit / income support
If you move into a local authority, private or voluntary run care home you may get Pension Credit or Income Support providing you qualify under the rules for capital and low income.
- The capital limits for Income Support are 16,000 (upper) and £10,000 (lower).
- The capital limits for Pension Credit are £10,000 (lower) and no upper limit.
- For people over the qualifying pension age and not in permanent residential care, the capital limits are £10,000 (lower) with no upper limit.
Calderdale Council Revenues and Benefits Service (Charging Assessment Team) can provide advice and information to anyone wishing to know how much they would have to pay if they move into a local authority, private or voluntary run care home, and what financial help may be available. Telephone 01422 393639 for more information.
Nothing in this guide should be taken as binding on Calderdale Council and this authority reserves the right to change its policies or procedures with regard to this information at any time.
This information was correct as at April 2014 but changes do occur. For the latest information contact Calderdale Council Revenues and Benefits Service
- Revenues and Benefits Service (Charging Assessment Team)
- 01422 393639.