Charging for residential accommodation

Charging in England, Northern Ireland, and Wales

Once it has been agreed that you need to enter residential care the local authority will make an assessment to see how much you have to pay. This assessment is similar to that for income support or pension credit guarantee credit though there are some differences, in particular the capital rules. 

Once the assessment has been made you will have to pay a weekly amount towards your residential accommodation and the local authority will make up the difference. You will always be left with an amount called the personal expenses allowance for your personal needs. You can also keep any disability living allowance mobility component you are getting. 

There are different rules if you are a temporary resident in a home.

Local authorities have a power to charge for residential care under section 22 of the National Assistance Act 1948. The method of assessing how much you have to pay is contained within the National Assistance (Assessment of Resources) Regulations 1992.

Local authorities use guidance, "Charging for Residential Accommodation Guide" (CRAG),  to the regulations when making assessments. There is a new April 2009 CRAG guide available.

CRAG is divided into 13 sections. Some of these sections are quite detailed and you will need to read them carefully or get advice. 

• The sections are:
  1. introduction - including the legal basis for charging, dependent children, preserved rights and complaints.
  2. less dependent residents - covers the effect of those who used to have accommodation provided under the National Health Service Act 1977.
  3. temporary residents - temporary can mean up to 52 weeks. If you are a temporary resident the local authority does not have to carry out a charging assessment for the first 8 weeks of your stay though they can ask for an amount from you that seems reasonable. This section details what might be disregarded when working out this amount.    
  4. couples - if you are part of a couple and you enter residential care a local authority has no power to assess your income jointly. You are treated as two separate people. There are no exceptions to this rule. 
  5. personal expenses allowance (PEA) - this is currently £21.90. The PEA in Wales is £22.00. Local authorities have the power to give you a higher amount in certain circumstances.
  6. capital - this describes what counts as capital. Capital of £14,000 or less is disregarded. Anything above this will mean that you have to pay more towards your accommodation. If you have capital above £23,000 you have to pay the full weekly charge for your accommodation. Note: These capital limits are the same in Northern Ireland but in Wales the upper limit is  £22,000 and the lower limit is £20,750, whether you are a temporary or permanent resident in a care home. 
  7. treatment of property - this considers situations where your property can be disregarded when assessing your capital. 
  8. income other than earnings - this explains how different kinds of income might be treated when assessing how much you pay towards residential care. Some income, such as disability living allowance mobility component is totally disregarded.
  9. earnings - this describes what counts as earnings and what earnings might be disregarded.
  10. trust funds - this tells you what a trust fund is and how different trust funds are treated.
  11. liability of relatives - married couples are liable to maintain each other and local authorities have the power, in certain circumstances, to ask your spouse (if you have one) to contribute to your accommodation fees. 
  12. students - this section deals with student income and how it is treated.
  13. transitional provisions - these no longer apply.

You have the right to complain against a residential accommodation assessment in the same way as you would against a community care assessment.

Charging in Scotland

Guidance on care charges are contained within the Scottish version of the charging for residential accommodation guide. In Scotland the upper capital limit is £22,500 and the lower limit is £13,750.

The personal expenses allowance is £21.90, the same as in England.

If you are age 65 and over and living in a care home and paying your own fees you can get an allowance of £149 a week towards your care home costs and a further allowance of £67 if you need residential nursing care.

If you are under 65 you can receive £67 towards your nursing care.

WHERE CAN I GET HELP?

You should seek further advice if you want to challenge a decision about your benefit. You can get help with your appeal at a local advice centre, such as a citizen's advice bureau. You can get more information about this from our factsheet F16, Finding a local advice centre, which is available at www.cara-online.org

Central Africa’s Rights & AIDS (CARA) Society has also published Benefit appeals - A guide to benefit appeals for advisers and disabled people. This guide helps you prepare for an appeal tribunal and will increase your chances of success at the hearing. It takes you through all the stages of the benefit decision-making process from the moment you receive an unsatisfactory decision through to the tribunal hearing.

It is available to have a look at it on our website at www.cara-online.org or by contacting Central Africa’s Rights & AIDS (CARA) Society on Tel: +44(0)20 7254 6415(voice and minicom) - Mob.:+44(0)7956 95 26 45 - Fax: +44(0)872 115 8436 - Email: caraas@hotmail.com

Updated July 2009