Financial assessments

This following information is about the assessment you will have if you are permanently living in a care home.

The financial assessment for permanent care takes account of your income and capital. The financial assessment will consider the value of any property you own providing you are the owner of the property and no one else lives there that is related to you. The Care Act 2014 gives local authorities guidance as to when and when not to include property in a financial assessment.

If you own a property, its value is not included within the assessment for up to the first 12 weeks you are in permanent care. This is known as the 12-week property disregard. This is available to you if meet the eligibility criteria and we are supporting your move into a care home. At the end of the 12-week disregard period, the value of your property is considered within your financial assessment.

If you rent your home and must end a tenancy, once your housing benefit ends, the rent you pay will be considered in your financial assessment.

If you own a property and are paying a mortgage, the mortgage will be considered in your financial assessment. We also take account of any home and contents insurance you may be paying.

Any stay in a care home longer than 4 weeks affects your entitlement to benefits when some of the cost is met by us. Your entitlement may end sooner if you were in hospital immediately before going into care. You need to advise the DWP when you are staying permanently in a care home.

The contribution you make from your income towards care in a care home is included within the budget the council makes available for your care and support costs. The cost of care that the council has assessed as relevant for your needs is known as the local authority rate.

If you have capital more than the Higher Capital Limit, you will not be eligible for any support towards care costs from us. You will pay the full cost of your care.

Read more about the 12-week property disregard and Deferred Payment Agreement Schemes.

In all cases we recommend that you should seek independent financial advice before making any decisions about paying for your future care. We can put you in touch with later life advisers that can help you plan to meet your future care costs.

All remaining rental income will be included within the financial assessment to determine your income contribution towards the cost of care and support.

Whether you rent out your property or leave it empty, it is your responsibility to insure and maintain your property to a high standard. You are required to advise us of any change to your rental income (such as a period where your property is untenanted), or if you decide to sell your property.

Also see:

• Residential care
• Assessing your needs
• Managing your finances