Once it has been agreed that you need to enter residential care the local authority will make an assessment to see how much you have to pay. This assessment is similar to that for income support or pension credit guarantee credit though there are some differences, in particular the capital rules.
Once the assessment has been made you will have to pay a weekly amount towards your residential accommodation and the local authority will make up the difference. You will always be left with an amount called the personal expenses allowance for your personal needs. You can also keep any disability living allowance mobility component you are getting.
There are different rules if you are a temporary resident in a home.
Local authorities have a power to charge for residential care under section 22 of the National Assistance Act 1948. The method of assessing how much you have to pay is contained within the National Assistance (Assessment of Resources) Regulations 1992.
Local authorities use guidance, "Charging for Residential Accommodation Guide" (CRAG), when making assessments.
CRAG is divided into 13 sections. Some of these sections are quite detailed and you will need to read them carefully or get advice.
You have the right to complain against a residential accommodation assessment in the same way as you would against a community care assessment.
Guidance on care charges are contained within the Scottish version of the charging for residential accommodation guide. In Scotland the upper capital limit is £22,750 and the lower limit is £14,000.
The personal expenses allowance is £22.30.
If you are 65 or over and assessed as requiring personal care in a care home, you can receive a fixed payment of £156 a week, with a further payment of £71 if you require nursing care (£227 in total), from your local authority.
Care home residents who are under 65 can only be considered for a payment of £71 towards their nursing care costs.
These payments are made regardless of your income and capital and are issued by the local authority direct to the care home.
You can also find out more information in Disability Alliance's Disability Rights Handbook at www.disabilityalliance.org/drh35.htm. This provides information about the different types of residential care, as well as charging for care.
You might also want to look at our Factsheet F6 - complaining about local authority decisions.
Age UK produce a care home checklist, to help you choose a care home, on their website at www.ageuk.org.uk.
You can obtain copies of our factsheets and publications by contacting Disability Alliance on 020 7247 8776 (this is not an advice line) or by fax on 020 7247 8765. All factsheets are available at www.disabilityalliance.org/fact.htm. All publications are available at www.disabilityalliance.org/shop.htm.
www.disabilityalliance.org - 18 May 2010
