Eligibility calculation - residential care
Joe Smith has been self-funding his residential care for nearly three years. His capital is now approaching the upper capital limit, and his son, who holds Lasting Power of Attorney, has provided financial information to the Council. Joe pays his care fees monthly in arrears. It is estimated that he will become eligible for Council funding in June 2025.
This is Joe’s eligibility calculation for residential care.
Step 1: Capital calculation
Joe has the following capital:
- National Savings: £3,113.83
- NatWest Current Account: £3,837.10
- NatWest Savings Account: £17,137.08
- Halifax Passbook: £4,363.38
Care fees already paid (1 to 25 May):
- Care fees: £2,142.75
Total capital before limit: £3,113.83 + £3,837.10 + £17,137.08 + £4,363.38 − £2,142.75 = £26,308.64.
Upper capital limit: £23,250.00
Amount above upper limit: £26,308.64 − £23,250.00 = £3,058.64.
Step 2: Weekly income calculation
Joe receives:
- State Pension: £285.13
- NHS Occupational Pension: £31.56
- Attendance Allowance: £110.40
Total weekly income: £285.13 + £31.56 + £110.40 = £427.09.
Personal Expenditure Allowance:
- PEA: £37.70
Available income: £427.09 − £37.70 = £389.39.
Step 3: Reduction in savings
Weekly cost of care while self-funding:
- Care fees: £1,600.00
Amount savings reduce each week: £1,600.00 − £389.39 = £1,210.61.
Time required to reduce to upper limit: £3,058.64 ÷ £1,210.61 = 2.53 weeks (17.68 days).
Eligibility date
Joe is expected to become eligible for Council funding on or around 13 June 2025, subject to confirmation by the Council.