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Last updated:
21/11/2017

How do I pay for residential care?

What is the most I will have to pay?

  1. Overview
  2. What is residential care and will I have to pay?
  3. What is capital and how will the local authority assess this?
  4. How will the local authority assess my income?
  5. What is the most I will have to pay?
  6. What are top-up fees?
  7. What are Deferred Payment Agreements (DPA)?
  8. The Mental Health Act and section 117 aftercare
  9. What if I cannot afford the charges?
  10. Next steps

If you have to pay towards the cost of your residential accommodation, your income should not fall below the ‘personal expenses allowance’ (PEA). The personal allowance is currently £24.90 a week.

Sometimes, you may be left with more than the PEA. For example, if you have children to care for, or to pay for the upkeep of a property that has been disregarded.

Example- Sue's Story

Sue lives in accommodation which costs the local authority £400 a week.  She has £204.40 a week in income and £19,000 savings. This means that the local authority regard her as having £20 tariff income. This makes her total income £224.40 per week. Because the local authority has to leave Sue with at least £24.40 to live on, she will have to pay £200 a week towards the cost of her residential care. The local authority would pay £200 which is the whole cost of her care. This will leave Sue with £24.40 to spend on personal items every week, although she would be in effect using her savings to make up her personal allowance.

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Within this subject

  1. Overview
  2. What is residential care and will I have to pay?
  3. What is capital and how will the local authority assess this?
  4. How will the local authority assess my income?
  5. What is the most I will have to pay?
  6. What are top-up fees?
  7. What are Deferred Payment Agreements (DPA)?
  8. The Mental Health Act and section 117 aftercare
  9. What if I cannot afford the charges?
  10. Next steps
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