Permanent residential care financial assessment calculation
Elsie has received care at home for several years but is finding it increasingly difficult to maintain her independence. Elsie decides she wants to move into a care home. She is assessed and meets the criteria. Elsie lives in rented accommodation and has savings under £23,250.
This is Elsie’s financial assessment for permanent residential care.
Step 1: Weekly income calculation
Elsie receives:
- State Pension: £105.70
- Pension Credit: £121.40
Total weekly income: £105.70 + £121.40 = £227.10.
Step 2: Capital
Elsie has the following capital:
- Nationwide account: £4,442.00
Total capital: £4,442.00.
Elsie’s savings are below the upper capital limit, so she is not treated as self-funding.
Step 3: Personal Expenditure Allowance
Elsie must be left with a Personal Expenditure Allowance (PEA) of £30.65 per week for personal items.
Total income after PEA deduction: £227.10 − £30.65 = £196.45.
Final result: Required contribution
Following these calculations, Elsie is required to contribute £196.45 per week towards the cost of her care and support.
Elsie receives Attendance Allowance. For the first 28 days in a care home, her Attendance Allowance is included in the assessment, and the severe disability premium included in her Pension Credit is also included. For the first 28 days, Elsie’s contribution is £389.75 per week.
After 28 days in the care home, Attendance Allowance stops and the severe disability premium is removed from Pension Credit. Elsie’s contribution then reduces to £196.45 per week.