Frequently asked Qs

• What are the key facts
  • Your local authority will do a financial assessment to work out if you must pay towards the cost of your care home.
  • You have the right to choose your care home, under certain conditions 
  • Depending on your income and capital, you might have to pay all or part of your care home costs, or nothing at all.
  • Your local authority should only charge you if you can afford to pay.
  • You might be able to enter into a deferred payment agreement. If you do, you do not have to sell your home immediately to pay for care home fees.
  • You might choose a care home that costs more than the local authority have decided it costs to meet your needs. You will have to pay top up fees.
  • If you get free aftercare under section 117 of the Mental Health Act 1983, your care home and care fees might be free of charge.
  • If you are not happy about how much your local authority is charging you, you can take action.
• What is a care home?

  If you have a mental illness, you may find it hard to live in your own home, even with help or support. You may need to stay in residential care accommodation. This type of accommodation is called a ‘care home’.   

  If you are in a care home care is provided on site, when you need it. 

  There are different types of care homes to support different needs. The care home you live in may depend on things such as your age or your need. 

  Where can I get information on paying for supported housing?

  This information does not relate to supported housing. The way you pay for supported housing is different. 

  See our webpage on Supported Housing – For adults living with mental illness for more information.

• Do I have the right to choose my care home?

  Your care might be funded by your local authority (LA). If so, they should let you know about your right to choose your care home and its location, subject to conditions. 

  You can choose your own care home if it:

  • is the same type of care home shown in your care plan,
  • is suitable for your assessed needs,
  • is available, and 
  • is willing to agree a contract with the local authority, on their terms and conditions.

  You cannot choose your own care home if your care is funded by NHS continuing healthcare.

  What if my local authority (LA) refuses my chosen care home? 

  Your LA might refuse, or might be unable to arrange a place, in the care home you have chosen.  

  They must give you their reasons in writing.

  What if I choose an out-of-area care home?

  You may want to live in a care home in an area outside of the local authority (LA) where you normally live.  Let’s say you want to move closer to friends and family.

  You LA must organise this for you. But only if the housing you want to live in fits the things mentioned above.

  The LA where you currently live must agree your personal budget. When agreeing this, they should think about the cost of care in the area you want to live in.  

  Your current LA would remain responsible for your care after you have moved to your new area.

  You can find more information in these 2 Age UK resources:

  • Finding, choosing, and funding a care home
  • Choosing the right care home
• Will I have to pay for my care home?

  If you need to live in a care home the local authority (LA) might be able to charge you for this.  

  If the LA decide you must pay, they must make sure they do not charge you any more than you can afford. 

  The local authority will do the following.  

  • Complete a financial assessment. This is also known as a means-test assessment.  
  • Look at your income and capital.  Capital can include land property, premium bonds, shares, and savings that you own.
  • Work out how much you will have to pay towards the cost of the care home, if anything. 

  You will need to give the local authority information about your income and capital. 

  The local authority will work out how much it will cost to meet your needs. This is known as your ‘personal budget’.   

  The local authority may use different rules if you go into the accommodation for a short time.

• What is capital and how will the local authority assess this?

  Capital can include land property, premium bonds, shares, and savings that you own, and other property.  

  How will my home affect what I must pay?
  Whether your main home counts as capital depends on your length of stay in the care home. 

  Your main home will not usually count as capital if you have a temporary stay in a care home of up to 52 weeks. But only if you plan to move back there. 

  In most cases, if you have a permanent stay in a care home the value of your former home will be considered as capital.  It will be taken into consideration for part of the financial assessment.   But there are exceptions. 

  Someone from the list below might permanently live in your home when you move into the care home.  If they do it will not count as capital.  

  • Your partner.
  • Your ex-partner - if you were a couple when you moved into the care home.
  • Your ex-partner if they are a lone parent.
  • A family member aged 60 or over.
  • Your child, who is aged under 18.
  • A family member who is incapacitated.

  How does capital I own with others affect what I must pay?
  You might own capital with another person that is not land property. 

  The local authority will treat you as owning half of any jointly owned capital. Unless there is evidence to show otherwise.   

  What is ‘disregarded’ capital?
  The rules on what counts as capital can be complicated. 

  If you own capital but it is not counted as capital, this is known as being ‘disregarded’. 

  Some capital can always be disregarded  or disregarded for periods of time, depending on the circumstances.  

  You can see the full list of what capital is disregarded by reading ‘The Care and Support Statutory Guidance’. You need to look at Annex B ‘Treatment of Capital’, paragraph 33 ‘Capital disregarded.’ You can access the Guidance here.

  How does my capital affect how much I have to pay?
  The local authority will work out the value of your capital. How much you must pay towards your care home depends on your capital. The list below shows the rules for the different capital amounts. 

  • £23,250 or more - you will have to pay for all your residential care accommodation. 
  • Between £14,250 and £23,250 - The local authority will include your capital in their financial assessment. They will pay for some of your care, and you will contribute to the rest. 
  • Below £14,250 – your capital will not be included in your financial assessment. Depending on your income you may not have to make any payment towards your care home costs. 

  You might have capital which is slightly above the £23,250 upper limit.  The local authority should: 

  • think about how long your capital may last, and 
  • plan when your assets will fall below £23,250 when working out your charges. 

  For every £250 you have over £14,250 the local authority will assess you as being able to pay £1 a week towards the cost of your care home. This is called ‘tariff income’.  

  What does ‘notional capital’ mean?
  Notional capital is capital that may be included in the financial assessment even though you do not have it. 
    
  Notional capital may be the following. 

  • Capital that you could have if you applied for it, such as a pension. 
  • Capital that is paid to someone else instead of you. 
  • Capital that you have got rid of yourself to reduce how much you must pay for the care home. This is called ‘deprivation of capital’.

  Examples of deprivation of capital can include the following. 

  • Giving money away as a gift.
  • Transferring your property into the name of another person.
  • Going on expensive holidays. 
  • Living an extravagant lifestyle, if you did this to deliberately take advantage of the system.
• What is income and how will the local authority assess this?

  The local authority will assess your income as an individual. They will not include your partner’s income. 

  Your income can include most benefits  and personal pensions. 

  What income is not taken into account?
  The local authority will not take the following types of income into account when doing your financial assessment.

  • Any income you get from being employed or self-employed. 
  • Some other types of income, such as child maintenance.
  • Some benefits such as:
    
    • mobility component of disability living allowance (DLA), 
    • mobility component of personal independence payment (PIP), 
    • child benefit, and 
    • child tax credit.

  These are just some of the common benefits that are not included in the financial assessment. It is not a complete list.

  The local authority might be allowed to treat your disability-related benefits as income. If they can, they should also consider if you have extra costs because of your disability.   For example, they may leave you with extra money to pay for a carer that you have arranged for yourself.

  What is ‘notional income’?
  Notional income is income the local authority treats you as having, even if you do not have it.  

  For example, you might have a pension that you could be receiving but have chosen not to claim. The local authority can treat you as if you are receiving it.

  Andrew’s story 

  • Andrew is 70 and is living in a care home.
  • He has not received his occupational pension that he could have received at age 65.
  • Andrew spoke with his former employer who agreed he will be paid his entire pension due from age 65.
  • The local authority can now apply notional income from age 65.
• What is the most I will have to pay?

  If you must pay towards the cost of your care home, your income should not fall below the ‘personal expenses allowance’ (PEA).  

  The PEA is currently £30.65 a week. 

  Sometimes, you may be left with more than the PEA. For example, if you:  

  • have children to care for, or 
  • pay for the upkeep of a property that has been disregarded.

  Sue’s story

  • Sue lives in care home, which costs the local authority £400 a week.  
  • She has £204.90 a week in income and £19,000 savings. 
  • Because she has more than £14,250 in savings the local authority says she has £20 tariff income. 
  • This makes her total income £224.90 per week. 
  • The local authority must leave Sue with at least £30.65 to live on. So, she will have to pay £194.25 a week towards the cost of her residential care. 
  • The local authority will pay the other £205.75. 
  • This will leave Sue with £30.65 to spend on personal items every week. Although she would be in effect using her savings to pay her care home fees.
• What are top-up fees?

  The local authority must offer you a care home that meets your assessed needs, no matter how much it costs. 

  You might want to go somewhere that costs more than it will cost to meet your needs, according to the local authority. You, or your family, can pay a top-up fee. 

  Top-up fees are the difference between: 

  • the amount of money the local authority has worked out it will cost to meet your needs, and
  • the actual cost of the care home.

  For example:

  • the local authority might have worked out it will cost £800 per week to meet your needs,
  • the actual cost of the care home you want to go in is £1,000 a week, so
  • the top-up fee you must pay will be £200 a week. 

  Your personal budget is the amount of money the local authority has worked out it will cost to meet your needs.

  The local authority might offer you a home that costs more than your personal budget. If this is the local authority’s decision and not yours, you do not have to pay top-up fees.  

  If you pay top-up fees you must sign a contract with the local authority. The contract will show: 

  • the amount of the top-up fees, 
  • how often you pay them, and 
  • who they are paid to.

  If you do not make your top-up payments, you may have to move to a different place that is within your personal budget. 

  The local authority will review the agreement from time to time. This will make sure they know of any increases in charges, and how they will divide this.

• What are deferred payment agreements (DPA)?

  If you are moving into a care home, it may become your lifelong home. 

  You might own a property that is classed as ‘capital’.  If you do, the local authority will ask you to pay towards the cost of your care home.

  This might mean you have to sell your property to pay for your care. A DPA lets you delay selling your home to pay for your care. 

  If you are eligible for a DPA, the council will help to pay your care home bills on your behalf, and you will owe them the money. 

  You can delay repaying the council until: 

  • you choose to sell your home, or 
  • until after your death.

  The local authority will take the money they are owed out of the sale proceedings of your property.  To give them the right to do this they will take a legal charge over your property.  This is like a mortgage. 

  You can be charged interest on the DPA. So, the amount that you owe the local authority can increase as time goes on.  

  Can I get a deferred payment agreement?
  You must meet 3 criteria to have a DPA. You must:  

  • have care needs that can only be met in a care home, 
  • have no assets worth £23,250 or more, other than your home, and 
  • not be eligible for a capital disregard.

  There are times where you could still be refused a DPA. For example, if the value of your home is low. 

  If you do not meet the criteria for a DPA you can still ask for one.  But the local authority does not have to agree to one. 

  Can I get advice before agreeing to a DPA?
  Before agreeing to a DPA you can get advice from:

  • an independent financial advisor, or
  • a solicitor. 

  If you want to know how to find an independent financial adviser, you can contact the government’s Money Advice Service:

  Money Helper
  Free and impartial advice about money issues.

  Phone: 0800 138 7777
  Address: 120 Holborn, London EC1N 2TD
  WhatsApp: 07701 342744 – for debt help, credit questions, or pensions guidance
  Webchat: www.moneyhelper.org.uk/en/contact-us/money-guidance  
  Website: www.moneyhelper.org.uk 

  See our webpage on Legal advice – How to get help from a solicitor for more information.

• What is section 117 aftercare under the Mental Health Act?

  When you are discharged from some sections of the Mental Health Act 1983 (MHA) you can get free after-care in the community.    This is known as ‘section 117 after-care.’

  Section 117 aftercare can include care home accommodation. 

  But only if:  

  • the housing is needed because of your mental health condition, and
  • it helps to stop your mental health from getting worse.

  So, if care home accommodation is part of your care plan, it should be paid for under section 117 aftercare. 

  In the past, some local authorities have refused to pay for care home accommodation under section 117 aftercare.  But in some cases the Local Government and Social Care Ombudsman have ruled that local authorities must pay.  And many local authorities accept that care home accommodation should be paid for under section 117 aftercare.

  If the local authority do not pay for your care home accommodation under section 117 aftercare when they should, you can complain.

  For more information see our webpages on the following:

  • Complaining about the NHS and social services
  • Section 117 aftercare – Under the Mental Health Act

  What if I am returning to care home accommodation?
  You might have lived in care home accommodation to meet your mental health needs before you went into hospital.  

  If you return to care home accommodation after being in hospital, it might be free of charge under section 117 after-care. Even if you paid for the care home accommodation before you went into hospital.  

  What if I am in a care home under deprivation of liberty safeguards (DOLS)?
  You might have to go into a care home under a DOLS order if you lack capacity. 

  If you are entitled to section 117 after-care the home should be free of charge. 

  You can find out more about DoLS here.

  What are top-up fees?
  Your care home might be paid for under section 117 aftercare. The local authority will assess your needs and decide how much it will cost to meet them. They call this your personal budget.

  You might want to go into a home that costs more than your personal budget. You will need to pay top-up fees. This is to cover the difference.   

  What if I get nursing care?
  You might receive nursing care in the home.  If you are entitled to section 117 after-care this will be free and paid for by the NHS. 

  Depending on your circumstances your nursing care might be paid for by the NHS under either: 

  • section 117 after-care, or
  • NHS Continuing Healthcare. 

  But either way, your nursing care should be paid for by the NHS. So, it will be free of charge.

  You can read more about NHS Continuing Healthcare here.

• What if I cannot afford the charges?

  If the LA decide you must pay, they must make sure they do not charge you any more than you can afford.  

  If you cannot afford the amount that the local authority is charging you can:

  • contact the local authority, 
  • talk to the person who did your assessment, and
  • ask for a review of your situation.

  It is important to explain your situation to them so that you can discuss options for repayment. 

  You can find more information about your options for dealing with debt here.

• How can I deal with problems with charges?

  You may have problems with the local authority (LA) charging you. You can deal with problems informally or formally. 

  The LA should make sure you know how to appeal their decisions or complain. 

  What are the informal options?

  It is best to try and deal with the problem informally first. You can talk about your concerns with:

  • the professional who oversees your care plan, or
  • if you do not have a care plan, the person who did the assessment. 

  You can ask them to explain their decision and discuss your concerns. 

  If you speak to someone keep a note of:

  • who you spoke to, 
  • when you spoke to them, and 
  • what you discussed. 

  What are the formal options?

  How do I complain?
  If you want to complain you must use the local authority’s complaints procedure.  You can ask them about this or look on their website. 

  See our webpage on Complaining about the NHS or social services for more information. 

  What is advocacy?
  An advocate is independent of social services who can help you to resolve issues or get your voice heard. They are free of charge. 

  See our webpage on Advocacy for mental health - Making your voice heard for more information. 

  How can I get legal advice?
  You should be able to deal with most problems informally or through the complaints procedure. 

  But if you feel that the local authority is not following the law you can get legal advice.

  You may be entitled to legal aid, depending on your situation.  

  See our webpage on Legal Advice – How to get help from a solicitor for more information.

• Further reading

  You can find more information in the most recent version of the Care and Support Statutory Guidance by clicking here.

• Useful contacts

  Disability Law Service
  They give free legal advice on social care, employment, housing, and welfare benefits to disabled people and their carers. This is to ensure that they have access to their rights and justice.

  Phone: 0207 791 9800
  Address: The Foundry, 17 Oval Way, London, SE11 5RR
  Email: helpline@dls.org.uk
  Website: www.dls.org.uk 

  Access social care
  Provides advice and information for people with social care needs by chatbot. 

  Address: 86-90 Paul Street, London, EC2A 4NE
  Email: enquiries@accesscharity.org.uk
  Website: www.accesscharity.org.uk

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