Will you have to pay for adult social care support?
By law we can ask people that receive adult social care services to contribute to the cost of the support they receive. These contributions help us to continue to provide adult social care services to the growing number of people who need them. Everyone will be offered a financial assessment to work out how much they can afford to pay towards the cost of their care.
What does a financial assessment involve?
You can complete our financial assessment form to see how much you may need to contribute. It may take up to 40 minutes to complete a form.
We will ask you to provide us with information about your income and any capital that you have so that we can calculate how much you are able to contribute towards your care.
If you need to fund residential care, the value of your property may also be taken into account.
As part of this assessment, we will take account any savings you have:
|Below £14,250||We will not take these savings into account in the assessment|
|Between £14,250 and £23,250||A tariff income of £1.00 for each £250 (or part of £250) and add this to your income used in the assessment|
|Above £23,250||We will assess you as being able to pay the maximum contribution, no matter what other income and disability costs you may have.|
To find out if you need to contribute to the cost of your care, one of our specialist finance officers can visit you to look at your income, capital or savings. As part of the financial assessment we may also give you advice on welfare benefits so you may be able to increase your income by claiming benefits you may be entitled to.
People arrange their own social care services for different reasons; some pay the full costs and others may pay a contribution. If you are paying the full cost of your care, you are known as a self-funder. This means that either:
- you have chosen not to approach adult social care for help
- you have been assessed but you are not currently eligible for services
- you are eligible for services, but your savings are above £23,250.
If you have been told that you do not currently meet the eligibility criteria for services, or are simply arranging your own support, a list of service providers through voluntary or independent organisations can be found on our Warwickshire Directory. This means that you can choose and pay for the kind of services you feel you need.
Self-directed support (personal budgets and direct payments)
During your assessment you maybe be told about self-directed support. Self-directed support is the way that adult social care in Warwickshire is delivered. It involves allocating a ‘personal budget’ – this is an upfront sum of money to meet your social care needs.
Deferred payment agreement
A deferred payment agreement is an arrangement with us that will enable people to use the value of their homes to help pay care home costs. If you are eligible, we will help to pay your care home bills on your behalf. You can delay repaying us until you choose to sell your home, or until after your death.
Deferred payment agreements will suit some people’s circumstances better than others’.
You should be eligible for a deferred payment agreement if:
- you are receiving care in a care home (or you are going to move into one soon)
- you own your own home (unless your partner or certain others live there)
- you have savings and investments of less than £23,250 (not including the value of your home or your pension pot)
More information on Deferred payments.
Independent financial advice
When is independent financial advice needed?
Knowing the best way to fund your care can be very complicated and confusing. There will be times when you need to get financial advice which is impartial and independent of the local authority so you make the right decisions. For example:
- where there are a number of options available and you need advice on which one to choose, bearing in mind that often we are not allowed to recommend one
- when there is potential conflict between the our interests and yours, such as advice on how assets are taken into consideration as part of your financial assessment
- when you are about to enter into a legal agreement. For example, we can provide information about the consequences of entering into a deferred payment agreement (DPA), but cannot advise you on whether you should enter into it.
- Where you want advice on specific financial products to get the most out of your assets – this would probably need ‘regulated’ advice.
What is an independent or ‘regulated’ financial adviser?
Independent financial advice is available from a number of sources. Some services are free and provided by not-for-profit organisations, such as:
There are also more formal ‘independent financial advisers’ (IFA), who you may need to pay for their advice. They can give you advice on financial matters and recommend suitable financial products.
Please note that:
- some financial advisers are ‘restricted’, which means they can only sell you certain types of products.
- IFAs have to be regulated by the Financial Conduct Authority (FCA) and must meet their strict requirements and standards.
- Many IFAs are not experts in social care, and there are few products available for the various financial changes of Care Act about how to plan for your care.
How to find independent financial advice
- Money Advice Service – or phone 0300 500 5000
- Citizen’s Advice Bureau – getting financial advice
- The Society of Later Life Advisers – helps you and your family find trusted financial advisers who understand financial needs in later life
We cannot recommend specific IFAs or provide a list of them, but you can search online for ‘IFAs in Warwickshire’ or ‘Independent Financial Advisers in Warwickshire’.
Getting help if you have difficulties understanding advice
If you don’t have family or friends to help you, and you think getting or understanding independent financial advice may be difficult, we may be able to provide you with a free ‘independent advocate’.
They can support or advocate on your behalf to ensure you have thought about the best way of supporting and representing yourself, with regard to your well-being and interests. This will help you to get the most out of any independent financial advice.
Other situations may mean you should have an independent advocate, such as when you need a long stay in a hospital or care home, or if there is a disagreement over your involvement.
Your transport contribution is based on the actual number of journeys you make with your transport service:
- transport distance up to 5 miles (rate per journey) £5.17
- transport distance 5 to 10 miles (rate per journey) £8.63
- transport distance over 10 miles (rate per journey) £12.23
Deferred payment administration and interest
Deferred payments carry additional charges, as well as the cost of services being received. These are:
- a one off up front charge of £458 to cover land registry search fees, registration costs, and the one off administration costs of the scheme
- an annual charge of £12.94 to cover the costs of administering the scheme each year (this includes providing statements and reviewing the arrangement)
Interest costs will be charged on all debt from the date that the debt arises. The maximum interest rate will be set by the Government and will be linked to the 15-year average gilt yield rate which is 2.1% at the time of writing (June 2015). A default component will be added to this of 0.15%, making the overall interest rate 2.25%. The rate will be reviewed and amended twice a year in line with Government announced changes to the gilt yield rate. You will be advised of the current rate if you inquire about applying for a deferred payment.
Telecare services cost £1.11 per week. Your telecare service contribution is based on the actual number of weeks or part weeks that you receive a telecare service.
Note – the charges for these services may change.
Your day care contribution is based on the actual number of days or part days you attend the day care service.
- day care – older people and mental health (day or part day rate) – £32.56
- learning disability day opportunities – customers have the option to pay for services by the hour if they wish, and are no longer limited to only being charged by the day.
- Learning disability day care – charges will be based on the actual individual daily cost of each service and will no longer be based on the average cost of all learning disability day services.
- Day care – physical disabilities (day or part day rate) – £22.04
Home care costs £15.72 per hour. Your home care contribution is based on the actual number of home care hours that you receive. If you wish to cancel or change your care you must give 24 hours notice or you may still be charged.
All residents have to pay for residential care, but the amount will be assessed according to your income and savings.
Respite residential care
Charges will be based on the actual individual daily cost of each service.
Personal assistant services
Personal assistant services cost £11.87 per hour. Your personal assistant contribution is based on the on the full cost of paying and employing personal assistants (hourly rate, via a direct payment).
Take A Break
Charges will be based on the actual individual cost of each service. The current charge is £14.90 per hour.
Sleeping night support
Support is charged at the full average cost, which equates to £9.40 per hour. The cost will be pro rata when shared between clients.
Waking night support
Waking night support is charged at the full average cost, which equates to £14.65 per hour. The cost will be pro rata when shared between clients.
24 hour live in support
24 hour live in support is charged at the full actual cost of the service. The cost will be pro rata when shared between clients.
Other chargeable services
You will be required to pay the full cost of other chargeable services and support such as laundry services.