The amount you will have to pay towards your care-home costs is based on your financial circumstances. The government decides the rules and limits that apply.
We will carry out a financial assessment to find out how much financial help you will be entitled to from us and how much you will have to pay towards the cost of your care-home fees. Alternatively you can use our financial assessment online form.
We will assess your financial circumstances before you go to live in the care home.
If you have more than £35,000 (the 2024/2025 rate) in savings or property, you will not qualify for financial help from us and you will have to pay the whole cost of your care, less any entitlement to free personal care or nursing care (or both).
If you are in this position, see 'What if my capital is above the upper limit for financial help?'
You do not need to have a financial assessment if you do not want to. If you choose not to have the assessment, you will not qualify for financial help.
See 'What if my capital is above the upper limit for financial help?' for more information about the care you may receive.
What do you take into account in the financial assessment?
A financial assessor from Angus Council can contact you and arrange to discuss with you, or your representative, or both of you about our financial assessment.
They will:
- ask about your income and capital;
- find out about your commitments; and
- find out whether you are a tenant or homeowner.
We will give you any advice you need about benefits and help you claim any benefits you are entitled to.
How is my income worked out?
We will take most of your income into account as being available to meet the cost of the care home. Your income includes most state benefits and any other pensions you receive. However, we do not take certain types of income into account. The following are some examples of income, which we do not take into account.
- £10 a week of war widow's or war widower's pensions
- War widow's special payment/war disablement pension/armed forces compensation payment
- Disability Living Allowance (mobility component)
- Personal Independence Payment (mobility component)
- Adult Disability Payment
For respite care, we also ignore the following:
- Attendance Allowance
- Disability Living Allowance (care component)
- Personal Independence Payment (daily living component)
- Adult Disability Payment
Personal expenses allowance
Everyone in a care home must be left with an amount of money for their personal expenses.
The personal expenses allowance is there so you can have money to spend as you like (for example, on toiletries and other minor items). Each year the Government decides the amount. You must not use it as part of your contribution towards fees.
The personal allowance for 2024/2025 is £34.50 a week.
We may also be able to include up to another £8.15 a week (for single people) and £12.10 a week (for couples) in your personal allowance.
The financial assessor can give you advice about this.
What counts as capital?
Capital includes money held in:
- bank or building-society accounts, including current accounts;
- cash;
- investment bonds and investment accounts;
- stocks and shares;
- trust funds;
- Premium Bonds;
- National Savings Certificates; and
- property
Whose capital do you take into account?
We only count the capital owned by the person going into care. If you have any joint capital (for example, a joint bank account or investment with your husband, wife or partner) we will treat you as owning half of the capital or investment. If you have a joint account with someone who is not your husband, wife or partner, we may need to see evidence of who owns the capital.
What are the capital limits?
The government set 'capital limits' which are reviewed every year.
The lower capital limit is currently £21,500 and the upper capital limit is currently £35,000 (2024/2025 financial year).
The capital limits apply whether you are a temporary or permanent resident in a care home.
What Is tariff income?
If you have capital between the capital limits (between £21,500 and £35,000) we say this capital produces a 'tariff income'. This means we take into account £1 for every £250 (or part of £250) between these limits to pay towards your care costs. We then add your tariff amount to your normal weekly income.
Example 1 - if you have £22,000 in capital, we will assess you as having a tariff income of £2 a week. We do not take the first £21,500 into account. This leaves a balance of £500. To take account of £1 for every £250 in this balance, we divide this by £250, which is £2.
Example 2 - if you have £21,950 in capital your tariff income will be £2.00 a week. Ignoring the first £21,500 leaves a balance of £450. We divide this by £250, which is £1.00 with £200 left over. We treat this £200 as 'part of £250', so your tariff income will be £2.00.
What about my ongoing financial commitments?
When we do the assessment, we may allow for ongoing financial commitments (for example, life assurance payments) you have to pay and we can add an amount for these to your personal expenses allowance. The financial assessor can give you advice about this.
Next: Will I have to sell my home when I move into a care home?