Only where the client's capital resources fall below defined levels will they qualify for local authority or state support.

The accommodation cost and a contribution towards them are a feature of all care with the exception of the NHS Continuing Care Provision. In all other options available other than residential and nursing care this living cost will be no different to the ongoing home rental or private ownership costs that were incurred prior to needing care support.

Below are some basic rules on when financial assistance is available from the state or local authority. The financial assessment is however different for Residential Care to that of Home Care Services. Where no state assistance is available the client and/or the relative should consider the options for private financial schemes rather than funding the care out of capital or interest.

Consideration is also given at the end of this section to some of the more specific issues that need to be recognised before and during a financial assessment.

Residential Care
When the financial position of the client is assessed the matter of capital is determined. This is made up of savings and realisable assets, this in some cases including the value of a privately owned home. In the case where a client is living with a spouse, partner or a relative, the consideration of the value of the home is not considered in the capital and 50% of the pension income is assumed as being for the spouse living at home. However the spouse, partner or relative may be asked to make a contribution to the cost of residential care such that the payments do not cause hardship to the spouse, partner or relative . This is known as "Liable Relatives' Contribution" and there are no fixed National rules on how this is calculated.

Whether the client is single or a partner, once the appropriate calculations in assessing capital have been done the cut off point above which no financial input from the Social Service will be made is £16,000. For a single person presently owning a private home it is effectively impossible for them to qualify for financial support until the home has been sold and the capital has diminished to below the capital threshold. If in considering the capital asset there is any likelihood that in the period of requiring care the capital might diminish below the threshold this will raise new issues that are considered under Fee differentials.

Thought should also be given to how joint income is considered and as a general rule this should be split into two equal accounts at the earliest possible opportunity, this resulting in the partner needing residential care being eligible for state assistance at an earlier point as capital declines in response to paying for care provision.

When capital is below £16,000 part of the costs of the care provision will be met by the Local Authority provided the rest of the assessment indicates a need for Care Support and the priority is sufficiently high to qualify for the funds available. The care costs that will be met by the Local Authority are in general terms the care providers charges* less the value of the clients ongoing income less a weekly personal allowance of £15.45 . The assessment of income is broadly the money that comes from any pension, (state and occupational) state benefit entitlement (Income Support), and work income. Interest from savings is not considered as income but does come into the capital calculation.

There is however a secondary cut off level, this being at £10,000. In the range £10,000 to £16,000 the client will be required to contribute above all other sums detailed above, a figure of £1 per week for every £250 of capital over the £10,000. At the top end of the scale this is £24 per week.

The question of capital value is one that cannot be easily overcome. The giving away of capital to relatives or charities as a means of falling below the threshold or reducing the ultimate liability will not impact the assessment. Such gift transfers will be regarded as if the capital asset still existed. For a fuller understanding look at the issues section below.

Home Care
If the support that is assessed as appropriate for the client is to be provided in the home environment then there is financial support available but the calculation of it can vary from Local Authority to Local Authority.

Like the assessment for residential support this will be subject to a financial assessment and the person's income will be considered. No account of the value of the home will be introduced into the calculation but capital in the form of savings, shares and investments will be considered. This capital will generate an assumed income at the rate of £1.00 per week per £250 of investments. There is likely to be a level of investment that is free from assessment this being around £3000.

Having undertaken the assessment of income and calculated allowances the residual income difference will determine how much of the home care costs will be carried by the client. Where the allowances are greater than the income, the local authority will carry the home care costs. The cost of the home care will be around £6 to £7 per hour, this varying from authority to authority, and with rising wages.

In all cases the Social Work Department will be able to detail to the client the nature of their assessment and there will always be an appeals procedure if the assessment is thought to be inaccurate.

Issues

• Assessment Appeal
  If there is a disagreement in the assessment of financial support be it from the Local Authority of the Benefits Agency the person needs to appeal generally within 1 month of the assessment result.
• Deprivation of Assets
  This is the deliberate giving of savings or property to family or friend to try to reduce the capital value in the assessment by both the Local Authority and Benefits Agency.
• Notional Capital
  In a financial assessment the Local Authority will add in Notional Capital, that is money that they identify as being appropriate to the assessment of capital but which is not available due to the prior sale of a house at below market value or a gift to try to avoid the capital being included in the assessment (Deprivation of Assets).
• Liable Relative
  A liable relative is the spouse of the person receiving care. Although the spouse's income is not considered in the assessment the Local Authority and Benefits Agency can look for a financial contribution from the spouse if they feel the spouse can provide financial help without hardship. This only applies to married partners.
• Charging Orders
  If the resident is slow or does not sell the home to realise the capital value and the Local Authority has to pay additional charges for the care provision they can without notification place a Charging Order on the property and they will recover the money due on completion of the property sale.

*It is generally the practice that each social work department will set a figure and have a specific contract for the provision of care. This level of cost and contract may vary from council to council, so where the care provider is in another council area or is charging above the authorities contracted value the client may be faced with additional costs. It is important to understand the implication that this might have at a later date and you should refer to the section on fee differentials.
(return to the section on defining the authorities contribution)

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