Non-residential financial assessment calculation - example 1
Jessica is 23 and has moderate learning disabilities. Jessica is moving into supported living for the first time, leaving her family home.
Following assessment and support planning, Jessica’s care has an estimated cost of £1007 per week.
Jessica already receives Universal Credit, and will have housing costs for the first time. Her housing costs will be covered by either Universal Credit or Housing Benefit dependent upon whether she is moving to specified property.
Jessica then has a financial assessment to see whether she can contribute towards the cost of her care.
Jessica receives the higher rate of PIP (Daily Living and Mobility), Jessica has some disability related expenditure, such as a contribution towards the cost of a gardener, additional bedding due to occasional night-time incontinence and additional clothing costs due to mobility issues. Jessica has no savings.
Jessica’s financial assessment for Supported Living is calculated as follows:
Step 1: Weekly income calculation
Jessica receives:
- Universal Credit (Personal Allowance + LCWRA): £172.15
- PIP Daily Living: £110.40
Total weekly income: £172.15 + £110.40 = £282.55.
Step 2: Housing costs deduction
Jessica’s housing costs are covered by benefits, so nothing is taken off.
Total income after housing costs deduction: £282.55.
Step 3: Disability related expenditure deduction
Jessica has the following disability related expenditure (DRE) costs:
- Laundry: £4.86
- Gardener: £3.50
- Bedding: £2.40
- Clothing: £5.80
Total DRE: £4.86 + £3.50 + £2.40 + £5.80 = £16.56.
Total income after DRE deduction: £282.55 − £16.56 = £265.99.
Step 4: Minimum Income Guarantee protection
Jessica must be left with at least £163.05 per week to live on, this is the Minimum Income Guarantee (MIG).
Total income after MIG deduction: £265.99 − £163.05 = £102.94.
Final result: Required contribution
Following these calculations, Jessica is required to contribute £102.94 per week towards her care and support.