Applicable from April 2023
A contribution is a payment by the supported person towards some or all of their support and care package. This may be for housing support, activity- based resource centres, socialisation and community based activities, and day care centres. A list of what constitutes personal care (which is exempt in law from charging) can be found at Appendix 2.
5.1 How are contributions for non-residential social care services calculated?
Everyone assessed as being eligible for support and care is offered a financial assessment to determine how much they can afford to pay towards the cost of the support that they receive. Where an individual declines to complete a financial assessment, they will be required to meet the full cost of their support package.
The contribution will be payable when the support and care package has been arranged and a start date agreed.
The contribution is payable for 52 weeks of the year by direct debit or invoice where the person does not have a bank account.
The amount payable can change when there is a change in the support that the person receives, or the person’s income increases or decreases.
The person’s contribution towards the cost of their support and care is based on their income and capital (including assumed income from capital), less any allowances as described in the COSLA guidance.
Minimum income threshold
In line with COSLA Guidance, the amount a person has to contribute should be set at a threshold according to their ability to pay. A person’s ability to pay does not affect the provision of their support, which is based on assessed need.
The thresholds are set by COSLA and are reviewed each year. For the current financial year amounts please see the link below:
The set threshold is expected to cover a person’s normal living expenses such as food, utilities, clothing, insurance, and household costs. Some other costs are offset against income (e.g., housing / rent / Council Tax costs not covered by benefits, and contributions to Independent Living Fund) as are some exceptional costs where they are a result of a person’s disability, such as exceptionally high heating or laundry costs, and clothing replacement, however as these costs can vary, they will be taken into account on a person by person basis.
Where a person’s income is calculated at less than the set thresholds, there will be no charge.
Disregards
There are disregards for rent, service charges, mortgage, water and sewerage charges, and for council tax. The balance of the income is referred to as “available funds” or sometimes “disposable income”. This information is gathered from the financial assessment.
Certain types of income are disregarded and not taken into account when assessing a person’s ability to pay a contribution. Information on which types of income can be disregarded can be found at the below link:
Taper
The taper rate is a percentage of the service user’s chargeable income, which is then used to calculate how much of a client’s income above the threshold figure is taken into account in calculating the contribution. The taper rates are set by the Local Authority and reviewed annually.
The taper amount is set by Angus Council and Angus Health and Social Care Partnership each year. For the current year’s taper amount please see Appendix 3.
Financial Assessment
Everyone who completes a financial assessment is required to provide evidence of their income in the form of bank or other financial statements, benefit award letters, share certificates etc.
The person will be advised in writing how much their contribution is to be and will receive a copy of the calculation sheet.
If the financial assessment is completed after the support package has begun, the contribution will be backdated to the date the person first received services.
Changes in circumstances
If there are changes in a person’s circumstances that may affect the current financial assessment, increases or reductions in income or expenditure, it is essential that a reassessment is carried out and that the financial assessment team is informed. Failure to do this may result in a person being liable to pay a backdated contribution. Supported people must inform either the case holder or the financial assessment team of any change in their circumstances which might affect their financial assessment.
If it is discovered that an incorrect financial assessment has led to someone paying too much or too little, a new financial assessment will be carried out and the correct amount will be applied going forward.
Capital and savings
Any capital and savings that a person has are considered in the calculation to determine what the contribution might be.
Capital includes any savings, investments or property owned by the person, but not the person’s main residence.
COSLA guidance reflects the same approach as that used by the Department of Work and Pensions (DWP) for means testing income-based benefits. For the current financial year amounts please see the link below:
Where someone has been awarded a compensation payment as a result of personal injury (whether as a result of a court judgment or by out-of-court settlement) and in respect of anticipated future care costs, this will be taken into account as capital when calculating the contribution. This will also include compensation payments held in trust.
5.2 When do contributions stop?
Contributions will end in the following circumstances:
- The support and care package ends completely,
- The financial circumstances of the person have fallen below the threshold,
- The person moves out of the local authority area,
- The person moves into permanent residential care,
- A SR1 /DS1500 is issued by the person’s GP for benefit purposes,
- The death of the supported person.
Note: To ensure that payments are not collected after the agreed end date, relevant notice periods are required to be given to the provider of the support. Where the provider of the support continues to invoice the Council for the support due to failure to provide sufficient notice, the contribution will continue to be payable by the person to the Council.
5.3 Undelivered services
Where a supported persons service is undelivered for a period of more than 14 consecutive days, for any reason which is out with the control of the supported person, there will be no contribution due by the supported person thereafter until the service resumes, or Angus Council and Angus Health and Social Care Partnership can provide an alternative service to the current service provided, or such as agreed between the Council and Partnership and the supported person.
If for any reason the supported person is the reason the service cannot be delivered, regardless of duration, then the Council and Angus HSCP will charge for these undelivered services based on the terms set out in the supported persons Individual Service Contract.
5.4 Non-disclosure
If you fail to respond to information required to complete a financial assessment or choose not to disclose information, then you will be assessed as being able to afford the maximum weekly contribution or the actual cost of your care. Whichever is the lesser amount.
5.5 Hardship/Exemptions
If paying a contribution towards the cost of the support and care package causes extreme financial hardship or poverty for the supported person, she/he can ask for her/his circumstances to be considered by the Head of Community Health and Care Services for the Angus Health and Social Care.
Next: 6. Appeals Process