Adult Social Care Contributions Policy 2024 - 7. Financial assessment for residential care

Following a care and support needs eligibility assessment, the Council will carry out a financial assessment to determine the amount of contribution towards a residential care. 

The value of any property owned by an adult in a care home is normally included in their financial assessment, unless it is occupied by a spouse or partner, or relative who is under 18, over 60 years of age or is incapacitated. 

The financial assessment considers an adult’s income, capital and in some cases appropriate expenses. Capital is explained in section 8 of this policy. Where capital included is above the upper limit the adult/their representative must pay the full cost of the care.

 Where capital is below the upper capital limit the basic principles of the financial assessment calculation are: 

Income LESS Personal Expense Allowance = Charge 

The full financial assessment will ensure that individuals retain a basic level of income after charges have been deducted, known as the Personal Expenditure Allowance (PEA). The amount is set by the Department of Health each year. 

Where a property is included within the assessment the adult may be eligible for the Council’s Deferred Payments Scheme. The Deferred Payments Scheme is to help those who have been assessed as having to pay the full cost of residential care but cannot pay the full amount because their capital is tied up in a property. For more information about Deferred Payments, please visit the Council’s website.