Appendix F: example care charges calculations

Example A: Personal Budget for weekly support and respite in a care home

Example B: person with a Personal Budget for ongoing weekly support and respite in a care home

Example C: person with a Personal Budget for ongoing weekly support and respite in a care home

Example D: non-residential care Financial Assessment Calculation

Example E: care home Financial Assessment Calculation

Example A: Personal Budget for weekly support and respite in a care home

A 68 year-old woman has a Personal Budget of £120 per week to meet her ongoing weekly care needs and £1770 per year towards two weeks respite care (from a carer’s assessment carried out with her daughter).

She uses her Personal Budget to pay for a carer each weekday morning and to stay in a care home for respite for two weeks while her daughter is away on holiday.

Her non-residential financial assessment shows she is not required to pay anything towards her non-residential service.

Annual Personal Budget:  £6000 (ongoing)   £1770 (respite). Total: £7700

Weekly Care Charges: she is charged nothing for her ongoing care and support and nothing for her two weeks of respite in a care home because her non-residential financial assessment shows her assessed maximum weekly contribution is zero – so she receives free non-residential service, and this is also applied to the respite care.

If during the year, she required further short stays in a care home that brought the total number of nights stayed in a care home to more than four weeks during that year, a financial assessment would be carried out using care home (temporary stay) charging rules to calculate her contribution towards the accommodation for those extra nights.

Example B: person with a Personal Budget for ongoing weekly support and respite in a care home

A 29 year old man living with his mother has a Personal Budget of £90 per week to meet his ongoing support needs and £8000 per year towards 14 nights of respite care (from a carer’s assessment carried out with his mother). He uses his Personal Budget to pay for a support worker and to stay in a care home for one night at various intervals over the year for respite. 

His non-residential financial assessment shows his assessed maximum weekly contribution is £33 per week.

Annual Personal Budget: £4500 (ongoing) £8000 (14-nights of respite) Total: £12,500

Weekly Personal Budget (£12,500 divided by 52 weeks): £240.39 Weekly Care Charges: he is charged £33.00 each week for his ongoing care and support including his 14 nights in a care home for respite.

Example C: person with a Personal Budget for ongoing weekly support and respite in a care home

An 80 year old man has a Personal Budget of £105 per week to meet his ongoing care needs and £1700 per year towards respite care (from a carer’s assessment carried out with his wife). He uses his Personal Budget to pay for a carer and to stay in a care home for respite.

His non-residential financial assessment shows his assessed maximum weekly contribution is £140 per week.

Annual Personal Budget: £5250 (ongoing) £1700 (respite). Total £6950
Weekly Personal Budget (£6950 divided by 52 weeks): £133.65

Weekly Care Charges: He is charged £133.65 each week towards his Personal Budget.   

At the end of the Personal Budget period (usually a year) –  and before we finalise his Personal Budget for the following year – we compare the charges he’s paid with the actual cost of his services and refund any overpayments.

Example D: non-residential care Financial Assessment Calculation

A woman aged 84 has a Personal Budget of £160 per week for care and support in her home. She receives full Housing Benefit and full Council Tax Support.

Non-residential Financial Assessment Calculator

Total savings and investments: £15,140

• Tariff charge (weekly) on savings and investments: £4.00
  Calculation: £14,250 disregarded. Leaves £890 savings charged tariff income @ £1 per £250/part £250

Weekly Income

Attendance Allowance £72.65
State Pension £169.75
Private pension £15.75
Pension Guarantee Credit £103.15
Pension Savings Credit £4.02
Total weekly income: £365.32
Total weekly income plus tariff charge on savings/investments: £369.32

Disregarded Income (weekly)

• Pension Savings Credit: – £4.02

Total REGARDED weekly income and tariff charge on savings £365.30

Allowances and Expenses (weekly)

• Housing expenses and other allowable expenses: n/a
  Housing Benefit and Council Tax Support received
• Disability related expenses (DRE): Standard DRE allowance: £10.85
  (A standard allowance for disability-related expenses (DRE) is included because the woman receives Attendance Allowance.  If she has more disability-related expenses than the standard weekly allowance, she can give us details of those expenses and we’ll include a higher DRE allowance in her assessment calculation)
• Minimum Income Guarantee: £235.65
  This is an allowance for daily living costs. The amount is for a single person who has reached the qualifying age for Pension Credit

Total allowances and expenses: -£246.50

Total regarded weekly income and tariff on savings LESS total allowable expenses and allowances: £118.80

ASSESSED MAXIMUM WEEKLY CONTRIBUTION £118.80
She would pay £118.80 per week towards her Personal Budget for care and support.

Example E: care home Financial Assessment Calculation

A single person aged 79 has moved to a care home where their care and support needs can be met. The council are paying the costs of £850 per week to their care home provider.

Care Home Financial Assessment Calculation

Total savings and investments: £17,320

• Tariff charge (weekly) on savings and investments: £13.00
  Calculation: £14,250 disregarded. Leaves £3,070 savings charged tariff income @ £1 per £250/part £250

Weekly Income

• State Pension £234.85
• Private pension £100.20

Total weekly income: £335.05
Total weekly income plus tariff charge on savings/investments £348.05

Weekly allowances

• Personal Expenses Allowance £30.15
  (a standard weekly allowance for people in care homes)

• Savings Disregard £6.95
  (Savings Disregard is calculated for people aged over 65 in accordance with the Care and Support (Assessment of Resources) Regulations.)

Total allowances and expenses: -£37.10
Total regarded weekly income and tariff on savings LESS total allowances and expenses: £310.95
ASSESSED WEEKLY ACCOMMODATION CHARGE £310.95