Care and Support Charging and Financial Assessment Framework

Contents

• 1. Summary
• 2. Legal context
• 3. Principles of this framework
• 4. Care and support services provided free of charge
• 5. Chargeable care and support services
• 6. Care and support financial assessment policy
  • 6.1 Capital
  • 6.2 How is a financial assessment carried out?
  • 6.3 Deprivation of assets
  • 6.4 Delays to the financial assessment process
  • 6.5 Financial assessment reviews
  • 6.6 Change in circumstance and use of financial information
  • 6.7 Debt recovery
  • 6.8 Debt Management and Relief
  • 6.9 Financial assessment and charging for care home accommodation
  • 6.10 Financial assessment and charging for non-residential care and support
  • 6.11 Annual Review
  • 6.12 How to pay your charges for care and support
• 7. Section 117 and social care packages of care
• 8. Mental capacity to manage finances
• 9. Residence when moving to accommodation outside Bath and North East Somerset Council
• 10. Deferred Payment Agreements (DPAs)
• 11. Interim funding policy
• 12. Choice of accommodation and top up payments
• 13. Funding agreement
• 14. Direct Payments
• 15. Equality Impact Assessment
• 16. Reviewing the Charging and Financial Assessment Framework
• 17. Appeals
• 18. Annex A
• 19. Annex B
• 20. Annex C
• 21. Annex D
• 22. Annex E
• 23. Glossary of terms

6.10 Financial assessment and charging for non-residential care and support

If you have care and support needs whilst living in supported accommodation or at home, you may need to pay something towards you care and support.

If your savings and capital assets are above the upper capital limit, you will need to pay the full cost of you care and support. We can help you arrange your care and support, or we can make the arrangements for you.

If you ask us to arrange the care and support on your behalf, you will need to pay the full cost of your care and support.

If your total savings and capital assets are less than the upper capital limit, we will carry out a financial assessment to work out your ‘calculated weekly care charge’.

To calculate your weekly care charge, we carry out the following assessment:

Weekly income + Tariff income on savings

- Housing expenses

- Minimum income guarantee

- Disability related expenditure

- Allowable expense commitments

= Calculated weekly care charge

Weekly income is the amount of income you receive48 that is included in your financial assessment (any earned income is disregarded49). Your income is converted into a weekly figure in the financial assessment.

Tariff income on savings is a weekly amount calculated from capital assets that are not disregarded. If you have capital assets above the lower capital limit but less than the upper capital limit, we will include £1 for every £25050.

Housing expenses – see ‘Housing Expenses’ for what costs are allowed in your financial assessment.

Minimum Income Guarantee (MIG) is an allowance given in the assessment by the Government to cover living costs – see 'Minimum Income Guarantee' for further information (below).

Allowable expenses commitments – see 'allowable expense commitments' (below).

Disability Related Expenditure (DRE) the Council may make an allowance in your financial assessment for expenses in relation to disability or medical conditions – see Disability Related Expenditure.

If you live with a partner you will need to identify:

• Your own income
• Your own capital
• Your own expenses
• and any income, capital and expenses that both you and your partner are entitled to or incur jointly (this could be income received, and/or capital held, and/or expenses incurred by either you or your partner on behalf of both of you). The Council as a starting point will assume that joint income and capital are owned in equal shares; however, it is for you to produce evidence of any assertion that income and/or capital are held in unequal shares.

Examples of income that are treated as received jointly for couples include but are not limited to:

• Pension Guarantee Credit
• Pension Saving Credit
• Income related Employment Support Allowance
• Universal Credit

The Council will assume that the payment of benefits and credits such as these are shared equally between both members of the couple, regardless of who the payment is made to.

The MIG allowance that will be used in the financial assessment where the individual is part of a couple will be that shown in the Care and Support (Charging and Assessment of Resources) Regulations 201451 relating to a single adult.

Calculation of income

In the Financial assessment process, your sources of income will be included, disregarded or partially disregarded. The Government provides guidance on which sources of income the Council must disregard and gives the Council discretion in respect of other sources of income.

The table below shows how sources of income are treated by the Council:

Source of income	How it is treated
Annuity for payment of care costs	Included
Armed Forces Independence Payment	Disregarded
Attendance Allowance (Higher rate) *****	Included or disregarded
Boarders	Partially disregarded52
Carers Allowance	Included
Child Benefit	Disregarded
Child Tax Credit	Disregarded
Child Maintenance	Disregarded
Charitable Income	Disregarded or partially disregarded53
Constant Attendance Allowance	Included
Court Order Payments or Settlements	Included
Disability Living Allowance (Care component) *****	Included or disregarded
Disability Living Allowance (Daily Living)	Included
Disability Living Allowance (Mobility)	Disregarded
Earnings	Disregarded
Employment and Support Allowance ***	Included
Equity Release Scheme Income	Included
Exceptionally Severe Disablement Allowance	Included
Guaranteed Income Payments (paid under Armed Forces Compensation Scheme)	Disregarded
Housing Benefit	Disregarded
Incapacity benefit	Included
Income Support ***	Included
Industrial Diseases Benefit	Included
Interest from Capital (such as savings and investments)	Disregarded or included54
Income from Trade Unions and Friendly Societies	Included
Job Seekers Allowance ***	Included
Lodgers and self-supporting children living at home	Included
Maintenance Payments specifically relating to children	Disregarded
Nationalist Social Persecution Payments	Disregarded
Notional income - this may include notional income from pension funds where a lower amount is being drawn, or where a pension income has been deferred	Included55
Occupations Pension – Personal Pensions	Included
Pension Guaranteed Credit	Included
Pension Savings Credit **	Included or disregarded
Personal Injury Payments *	Disregarded (subject to investment)56
Personal Independence Payment (Daily Living)	Included
Personal Independence Payment (Higher rate) *****	Included or disregarded
Personal Independence Payment (Mobility)	Disregarded
Severe Disablement Allowance	Disregarded
State Pension	Included
Social Fund Payments	Included
Sub Tenants	Disregarded
Trust Fund Income	Included or disregarded57
Universal Credit ***	Included
War Pension paid to Veterans	Included
Widows Benefit	Disregarded
Winter Fuel and Cold Weather Payments	Disregarded
Working Tax credit	Disregarded

* Personal injury payments will be disregarded for 52 weeks58 from the date of receipt and then taken into account in any financial assessment unless the sum received is placed in a trust fund or Deputyship account.

** Pension savings credit is taken into account if you receive care in a residential setting but not if you receive care at home or in the community59.

*** Income from means-tested benefits paid to one member of a couple are considered as shared equally between both members of the couple:- 50% of a couple’s income-related Employment and Support Allowance; Pension Credit; and Universal Credit is considered within the financial assessment for the member of the couple who receives the care and support.

****The full amount of your Universal Credit award will be taken into account even if you are repaying an earlier advance.

*****If you receive the higher rate of Attendance Allowance, Personal Independent Payment (PIP), or Disability Living Allowance (care component), and Bath and North East Somerset Council does not pay for any care at night for you, this sum is disregarded.

All other income not listed in the table will be considered in the financial assessment in line with the Care and Support (Assessment of Resources) Regulations 2014, along with any tariff income from savings and capital.

Tariff income is a weekly amount calculated from capital assets that are not disregarded. The weekly amount is added to your income in your financial assessment. This is calculated as follows:

Level of capital or savings	How this is considered in the financial assessment
£0 - £14,250	Disregarded
£14,251 - £23,249	Tariff income is calculated at the rate of £1 for every £250 or part thereof60.
£23,250 +	Full cost of care and support applies at or above this level

Housing expenses

The Council will make allowance in the non-residential financial assessment for your housing costs. Sharing costs – if you share a household with other adults, the amount of the housing costs item that is allowed in your financial assessment will be on the basis that costs are shared equally by the number of adults in the household, unless the Council has information to show that a different way of sharing the costs should be considered.

Allowances are made depending on your housing tenure and circumstances, including:

• Rent (net of housing benefit). If you are entitled to receive full housing benefit or Universal Credit Housing Allowance but you have your benefit reduced by a ‘non-dependent deduction’, your financial assessment will not show an allowance for the non-dependent deduction amount.
• Mortgage (net of assistance through benefits such as Pension Credit, Employment and Support Allowance and Universal Credit).
• Council Tax (net of Council Tax Support). If you are entitled to receive full Council Tax Support but have had your support reduced by a ‘non-dependent deduction’, your financial assessment will not show an allowance for the non-dependent deduction amount.
• Essential service charge and ground rent net of funding through benefits.
• Water – the Council will allow the costs of the standing charge.
• Gas and electricity - the Council will allow the costs of the standing charge.
• Home Buildings insurance61 (subject to evidence being provided of the amount being paid for building insurance only – if the policy is a joint policy and does not show separate amounts for buildings and contents insurance 50% of the total cost will be taken).

Allowable expense commitments

An allowance for the following expense commitments may also be made in your financial assessment, if they apply to you:

• Payments under a Court Order (for example, child maintenance).
• Educational expenses at the discretion of the Council and if they are identified in your care and support plan (these are costs associated with a registered education or training course at University or College). Costs are apportioned across the year, and a weekly allowance is calculated. Allowable expenses include tuition and study materials (for example, textbooks) subject to the course being appropriate to assist with obtaining work and may include tools required for an apprenticeship, if you have to pay for them. You should retain receipts of expenses as proof.

Minimum Income Guarantee (MIG) for basic living costs

This is the level of income that national rules state you must be left with before any charge can be made for non-residential care and support services. This MIG is to ensure that you are left with money to cover your day-to-day basic living expenses. The level of the MIG varies depending on your age and other circumstances at the time of your financial assessment62.

If you live with a partner who is on a low income63 you and your partner can request that the Council carries out an affordability check of your joint situation to ensure that your level of MIG (for basic living costs) maintains your joint financial resources above Department for Work and Pensions minimum levels.

Disability related expenditure (DRE)

This is an allowance that is made in your financial assessment for additional expenses due to disability or medical condition if you receive Attendance Allowance or Personal Independence Payment, Disability Living Allowance (Care component) or Health Allowance component of Universal Credit. Your Social Worker will as part of the care and support assessment refer any request related to a disability and/or medical condition to their Social Work Team Manager who will decide if this cost will be allowed as part of your financial assessment.

DRE will be considered when:

• The extra cost is needed to meet your specific need due to a medical condition and/or disability, as identified in your care and support plan64.
• The cost is reasonable and verified.
• It is not reasonable for a lower cost, free alternative item or service to be used. If a lower cost alternative could have been used, the expense considered will be capped at the cost of the lower item.

DRE allowance is not allowed for:

• General items or services required for daily living, which would be used by the general population.
• Any item or service met by payment from a grant (for example, Disability Facilities Grant) or where another funding source has been provided.
• The difference between the actual cost and the lower cost alternative where the Council considers it reasonable for a lower cost alternative.

Where a particular item of expenditure combines more than one item or service the Council will only consider the part of the expense that is meeting the specific disability or medical condition. For example, if you pay a hairdresser the hair washing cost would be considered if you could not do this task yourself, however, hair cutting costs would not be allowed, as this is a service used by the general population and is not a disability related expense.

Sharing costs

If you share a household with other adults, and the additional disability-related expense item relates to a service that supports the household as a whole (for example. payments to a cleaner) the amount of the expense item that is allowed in your financial assessment will be on the basis that costs are shared equally by the number of adults in the household, unless the Council has information to show a different way of sharing the costs should be considered.

Annuity payable for care costs

If you have taken out an annuity to pay the costs of your care when the time comes, this will be taken into account as either full payment or part payment towards your cost of care depending on how much is payable under the annuity.

You or your financial representative must make the application for payment of the annuity as soon as you are aware of the need for care. If when the Care Finance Officer carries out their financial assessment and you are not in receipt of the annuity payment the Council will allow 28 days for you to apply and receive this payment. After 28 days the amount you are entitled to under annuity will be taken into account as notional capital.

You must provide the following to the Care Finance officer:

• The policy
• Conformation of the amount payable including the date payment commenced or will commence
• Whether payment is made directly to the care provider or to you

If payment of the annuity amount is paid to you or your financial representative it is your/their responsibility to ensure this is paid to the care provider.

You or your financial representative must inform the Client Finance Team if the amount being paid changes or stops, any change will be taken into account in your financial assessment from the date you inform the Client Finance Team.

Dependent Child Allowance

If you are responsible for, and a member of, the same household as a child, and receiving care and support at home you are entitled an additional amount as part of the minimum income guarantee.

Universal Credit

Universal Credit is an assessed benefit and therefore may fluctuate. It is the responsibility of the service user or their financial representative to inform the Care Finance Officer of any change in the amount of Universal Credit received.

The Care Finance officer will request conformation of the amount of Universal Credit received for the previous financial year annually in April when the annual review of benefits occurs.

When the information about fluctuating receipts of Universal Credit is provided to the Care Finance Officer the amount received will be averaged over the previous 12 months and any shortfall in the assessed weekly care charge will be requested from the service user and payment will be required with 14 days of the date of the invoice. Any over payment of the assessed weekly care charge will be deducted from the service users’ future charges.

Assessed weekly charge

Your assessed weekly care charge is the amount you are required to pay towards the costs of your non-residential care and support. You will not be asked to pay more than your assessed weekly care charge if:

• your assessed weekly care charge is nil, you will receive your non-residential care and support service free of charge.
• your assessed weekly care charge is more than the cost of your agreed care and support, you will pay the full cost of your care and support.
• your assessed weekly charge is less than the cost of your care and support, you will pay only your assessed weekly charge towards your care and support.

• 48This may include notional income if you are entitled to income that you have chosen not to receive. For example, if you have a pension fund that you have chosen to draw a lower amount than you are entitled to, your weekly income will include the full amount of income you were entitled to draw from an annuity product.
• 49Clause 8.21 of the Care and Support Statutory Guidance.
• 50Clause 8.20 of the Care and Support Statutory Guidance.
• 51Clause 7.4 of the Care and Support (Charging and Assessment of Resources) Regulations 2014 as amended by https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/677736/Local_authority_circular_-_charging_for_care_and_support_LAC_DHSC__2018_1.pdf
• 52Annex F clause 20 of the Care and Support Statutory Guidance.
• 53This may be fully disregarded or partially disregarded in line with Part 4 Clause 16, 22 and Schedule 1 of the Care and Support (Charging and Assessment of Resources) Regulations 2014.
• 54If the capital has been included in the financial assessment, the income received from the capital is usually disregarded. If the capital is not included in the financial assessment, the income received from the capital us usually included. The Care and Support Guidance (Annex A and B) has further examples.
• 55Notional income is an amount of money that is counted in the financial assessment where the individual could access (or could have accessed) that money as income if they chose to, but have chosen not to.
• 56Clause 15(3)(c) and 22 of the Care and Support (Charging and Assessment of Resources) Regulations 2014 and Schedule 10 Para 12 and 12(a) of the Income Support (General) Regulations 1987.
• 57Treatment of Trust Funds income depends on the situation and are detailed in the Care and Support (Assessment of Resources) Regulations 2014 Part 1 Clauses 22 and 27.
• 58Paragraph 12 of Schedule 10 of the Income Support Regulations (personal Injury Trusts).
• 59Clause 30 of Annex C of the Care and Support Statutory Guidance.
• 60Clause 8.20 of the Care and Support Statutory Guidance.
• 61See Annex C Clause 49 of the care and Support Statutory guidance.
• 62GOV.UK guidance
• 63‘Low Income’ relates to income (including tariff income from savings) below Department for Work and pensions minimum allowance/personal allowance levels of benefit.
• 64Annex C Clause 39-41 of the care and Support Statutory Guidance.