In most cases, individuals will be expected to make a financial contribution towards the cost of their care and support. There are a few exceptions, such as Section 117 and NHS Continuing Health Care clients.
If you have savings over £23,250 you will need to pay the full cost of permanent, temporary (respite) or nursing home care.
How we work out how much you need to pay
If we do not already have your financial information, you will have to complete a Financial Assessment Form (FC2A).
A financial assessment officer will then review all aspects of your income, including:
- pensions
- benefits
- savings
- shares
- other assets
- any other income
They will use this information to calculate the amount you should contribute to cover the expenses of your care and support services.
You will then receive a letter and copy of the calculation sheet, ensuring that you have a clear understanding of how your financial circumstances can affect the cost of your care.
If you need help with this, please contact the Financial Assessment Team (contact details below).
Short stays
We have different rules for working out how much you must pay if your stay is non-permanent - a short stay. For example, for respite stays we ignore Attendance Allowance but we take it into account as income for permanent stays.
The Financial Assessments Team will let you know what you have to pay as soon as possible after you move into a residential or nursing care home.
Income considered when working out your payment
We will use all the income you receive, including:
- state retirement pension
- pension credit
- social security benefits, such as Employment Support (ESA), Attendance Allowance (AA), and Personal Independence Payment (PIP)
- private or occupational pension
- rental Income
- any other sources of income
- any other assets
Please note that Attendance Allowance and Personal Independence Payment (PIP - care component) are only payable for the first four weeks of a permanent stay if funded by us. Afterwards, you may need to stop these benefits. However, if you are self-funding your care, you may be able to retain these benefits.
Savings
When calculating your payment, we do not consider the first £14,250 of your savings.
For every £250 (or part of £250) you have between £14,250 and £23,250, we add £1 a week to your income. This is referred to as tariff income and does not reflect the interest you earn on your savings, which is disregarded in the calculation.
The following examples show you how this tariff income is calculated:
Example 1
You have £14,500 in savings. We disregard the first £14,250, leaving £250. We will add £1 to your weekly income.
Example 2
You have £14,750 in savings. We disregard the first £14,250, leaving £500. We will add £2 to your weekly income.
If your savings exceed £23,250 you will be responsible for covering the full cost of your care.
It is important to note that you should not transfer or give away your assets, such as money, shares or property, with the intention of avoiding paying all or part of the charges for your care. If this happens, we have the authority to assess you as if you still possess these assets.
If your savings drop below £23,250
If you are paying your own fees, you need to contact the Adult Social Care Team in whose area your residential or nursing home is located.
If the residential or nursing care home is in the London Borough of Merton, you should contact our Adult Social Care Team. A care manager or social worker will carry out a needs assessment to see whether we can help you pay your fees. You will be asked to fill out a financial assessment form and provide us with all your financial details. The Financial Assessment Team will then work out the new amount you have to pay, which will probably be less.
Payments to the residential or nursing care home
We usually pay the full fees to the care home. We then collect the assessed contributions from you (or a member of your family who deals with your financial affairs or power of attorney) by issuing a four-weekly invoice.
How we inform you about your contribution
The Financial Assessments Team will send you a letter that tells you how much your weekly contribution is from the date you go into the care home.
We will also tell you how we have worked out your weekly contribution.
Your bill will be based on this contribution and sent monthly.
The Financial Assessment Team may not be able provide an immediate payment amount in time for your first bill. It is important to save any incoming funds, such as the State Retirement Pension, to cover your bill.
Currently you are entitled to keep a minimum of £28.25 per week for your personal allowance expenses.
Exceptions to a house sale
The value of your property will not be included in your financial assessment if the following people live in the property:
- your husband or wife
- a relative aged 60 or over
- a relative under 60 who receives certain disability allowances
- a child under 16 for whom you are financially responsible
If the above circumstances change your situation will be reviewed.
There may be other circumstances where the value of your property will not be counted, and the Financial Assessment Team will discuss this with you when they gather full details of your financial situation.
If none of these special circumstances apply, the value of your property will be considered when assessing how much you should pay for your residential or nursing care home.
However, there are guidelines in place for this:
- The value of your house is ignored for the first 12 weeks of your move to a care home. This is known as the 12-week property disregard period. Please note – You will be asked to pay the assessed contributions for your 12 weeks property disregard period from your income.
- After this 12-week period, the value of your property is considered towards your financial assessment. This means you are liable to pay the full cost of your residential and nursing stay. However, if you do not have savings or other assets exceeding £23,250 that are not immediately available, the full charges can be delayed until your property is sold. This is known as the Deferred Payment Scheme (DPS), which is for those who do not wish to sell their property or are unable to sell the property in time to meet the cost of their residential and nursing stay.
You will be asked to pay the assessed contributions based only on your income and savings and since you are liable for the full cost of your accommodation, a debt will build up, with your property as security. We will secure our interest in your property by registering a charge at the Land Registry.
If you choose not to join the DPS, a full invoice will be produced for your stay at residential and nursing stay. We will expect the invoice to paid in full.
Please make a request to us if you would like to enter this scheme.
While your property is being sold
If you have not entered the deferred payment scheme, you will be charged the full cost of your care. If you have entered the deferred payment scheme, you will pay a contribution based on your income and any savings that you have more than £14,250.00.
We will continue to pay a share of the cost of your stay and keep you up to date with the debt that is building up against your property.
NHS Funded Nursing Care
NHS Funded Nursing Care is provided to residents assessed as needing nursing care by an NHS healthcare professional. If you qualify for this, the amount you receive will vary based on your nursing care needs and can be either of the following weekly amounts:
- £219.71 a week - standard rate
- £302.25 a week - higher rate
If you are responsible for paying the full cost of your residential and nursing stay, your final bill will be reduced by these deductions.
Hospital stays
Normally, your benefits will continue, and you will continue to pay your normal charge while you are in hospital or until your place at your nursing and care home is given up by agreement.
For more information
If you need more information about the charges for residential or nursing care homes, please contact the Financial Assessment Team (telephone number and email details below).
If you disagree with how much you are asked to pay
If you have questions or concerns about how your assessed contributions were calculated for your residential and nursing care, please contact us.
We will explain the outcome of your assessment and you can ask us to review your contribution if needed.
If you are still dissatisfied, you can make a formal complaint.
Contact us
If you need more information please contact the Financial Assessment Team.
Email: financial.assessment@merton.gov.uk
Telephone: 020 8545 3632