Temporary residential care calculation
Several months after Arthur’s stroke, his recovery has not continued as hoped. Penny, his wife, becomes exhausted caring for him and is admitted to hospital following a fall. Arthur cannot be left alone, so an emergency temporary placement is arranged in a care home. Penny is expected to be in hospital for at least one week.
Arthur is now in receipt of Attendance Allowance. However, Attendance Allowance is disregarded for this type of temporary residential care financial assessment.
This is Arthur’s financial assessment for emergency temporary residential care.
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
Arthur has the following capital:
- Half of joint bank account: £3,642.00
- ISA savings: £10,555.00
Total capital: £3,642.00 + £10,555.00 = £14,197.00.
Step 3: Housing costs deduction
Arthur continues to pay the following housing cost:
- Half buildings and contents insurance: £3.30
Total housing costs: £3.30.
Total income after housing costs deduction: £345.63 − £3.30 = £342.33.
Step 4: Disability Related Expenditure deduction
Arthur has the following disability related expenditure (DRE):
- Window cleaner (half cost): £2.25
- Cleaner (half cost): £5.70
- Gardener (half cost): £5.00
Total DRE: £2.25 + £5.70 + £5.00 = £12.95.
Total income after DRE deduction: £342.33 − £12.95 = £329.38.
Step 5: Personal Expenditure Allowance
Arthur must be left with a Personal Expenditure Allowance (PEA) of £37.70 per week.
Total income after PEA deduction: £329.38 − £37.70 = £291.68.
Final result: Required contribution
Following these calculations, Arthur is required to contribute £291.68 towards the cost of his emergency temporary residential care.
As Penny is expected to be in hospital for one week, Arthur’s existing home care package costing £250.00 per week continues to be paid. The cost of the emergency care home placement is £1,100.00 for the week.
Total cost of Arthur’s care and support for the week: £250.00 + £1,100.00 = £1,350.00.
Arthur will be asked to contribute £291.68 towards this total cost.