Non-residential financial assessment calculation - example 2
Arthur is 86 and lives with his wife Penny, also 86. They own their own home and had enjoyed a long retirement until Arthur suffered a stroke. Following his hospital discharge, carers now visit daily to help him get out of bed, get dressed, and return to bed in the evening.
Arthur’s care at home has an estimated cost of £164.92 per week.
Arthur has a financial assessment to determine whether he must contribute towards the cost of his care and support.
Arthur receives income from his State Pension and an occupational pension. He also has modest savings.
Arthur is not currently entitled to disability-related expenditure deductions, as he is not receiving a qualifying disability benefit.
Arthur’s financial assessment for care at home is calculated as follows:
Step 1: Weekly income calculation
Arthur receives:
- State Pension: £264.23
- Railway Pension: £81.40
Total weekly income: £264.23 + £81.40 = £345.63.
Step 2: Capital and tariff income
Arthur has the following capital:
- Half of joint bank account: £4,261.00
- ISA savings: £10,131.00
Total capital: £4,261.00 + £10,131.00 = £14,392.00.
From this capital, Arthur is assessed with tariff income of:
- Tariff income: £1.00
Total income including tariff income: £345.63 + £1.00 = £346.63.
Step 3: Housing costs deduction
Arthur contributes towards household costs as follows:
- Half Council Tax: £14.80
- Half Buildings and Contents Insurance: £3.30
Total housing costs: £14.80 + £3.30 = £18.10.
Total income after housing costs deduction: £346.63 − £18.10 = £328.53.
Step 4: Minimum Income Guarantee protection
Arthur must be left with at least £177.55 per week to live on. This is his Minimum Income Guarantee (MIG).
Total income after MIG deduction: £328.53 − £177.55 = £150.98.
Final result: Required contribution
Following these calculations, Arthur is required to contribute £150.98 per week towards his care and support.
At the time of assessment, Arthur is not entitled to disability-related expenditure, as he is not receiving a qualifying disability benefit. He may become eligible for Attendance Allowance after six months if his needs continue. If awarded, his finances will be reassessed. Arthur’s wife’s income must also be checked to ensure she retains sufficient minimum income.