Paying for residential care

If Social Services agree that Residential/Nursing Care would best suit your needs, then you will be financially assessed, and may receive financial assistance, towards the cost of the care.

This care may be on a Temporary (Extended Care) basis (i.e. if you are likely to return home within 52 weeks), oR alternatively, on a Long Term/Permanent Basis.

Calculation of Residential Care Charges

When calculating an assessed charge, the majority of your income will be taken into account. However, you will be allowed to keep a minimum of £39.50 per week (Personal Expenses Allowance), and the following incomes are disregarded, when calculating the assessed charge:-

• Disability Living Allowance/Personal Independence Payment Mobility Component
• War Disablement Pension (payable to a Veteran)
• The first £10 of any other War Pension (e.g. payable to a Spouse)
• Child Tax Credit
• Housing Benefit
• up to 50% of your Occupational Pension, if it will be going to a Spouse, who is still living at the home address (except in certain circumstances)
• allowances for certain household bills (e.g. House Insurance, Gas, Electricity, Water) can also be made, if you have been admitted to a care home, on a Temporary (Extended Care) basis.

Please note that there are also certain types of capital that can be disregarded in the financial assessment (e.g. an Investment Product which has an element of Life Assurance attached) – if applicable, the Financial Assessments section should be contacted for further advice.

Capital Threshold

If you have savings of under £50,000 (this consists of savings in your name, or your share of any joint accounts), you will be financially assessed to make a financial contribution (which would be paid direct to the care home), with the Council also making a financial contribution, towards the placement.

Self-funders

If you have in excess of £50,000, you will be required to meet the full cost of the placement, until your savings fall below £50,000 (NB if you possess in excess of £50,000, you can still request that the Council assists in arranging your care home placement) - should savings be just above the capital limit (e.g. £52,000), you should contact the Council, in order that funding arrangements can be put in place, and financial assistance provided, once your savings fall below £50,000.

Please note that you should not give away any capital assets (including any property), in order to apply for financial assistance at an earlier date (as this would be classed as a “Deprivation of Capital”, and would result in the Council likely assuming that you still possess these assets).

If you own your own home 

If you own your own home, its value may be taken into account, following an admission to Long Term care (unless a partner, or disabled/qualifying relative resides at the address).

If the house is left empty, you could either decide to sell it (to fund the cost of your care), or you may enter into a Deferred Payment Agreement with the Council (subject to certain terms and conditions), whereby you may be able to delay the sale of the property until a future date.

The Council would agree to provide financial assistance, but would then recover any amounts paid to the care home (on your behalf), usually from week 13 onwards, and would recover these amounts following the eventual sale of the property – whilst the property is for sale, or Deferred Payment Agreement in place, you would continue to be financially assessed, and would be required to continue paying an assessed client contribution (i.e. based on your income).

For specific advice on Deferred Payments, you should refer to the Financial Assessments section (in addition to our factsheet, “Information on deferring residential care home fees, if you own your own home”).

If a property has been included in your financial assessment, you will be entitled to claim Attendance Allowance (due to the fact that there will be an agreement to pay additional fees at a later date), and you may also be entitled to claim the Severe Disablement Premium element of Pension Credit - similarly, if your savings are in excess of £50,000, you should also be entitled to claim Attendance Allowance (and possibly Pension Credit too, but dependent on your level of capital), as you will be meeting the full cost of your care home fees.

Payment of Residential Care Charges

Once the Council has calculated your assessed charge, a letter (and statement of charges) will be sent to you (or, if you would prefer, to a representative on your behalf) advising of the weekly amount that needs to be paid to the care home – you will then be expected to pay the assessed charge (direct to the care home), with the Council making its own arrangements to pay its own financial contribution direct to the care home.

Third Party/Additional Cost (Top Up) Payments

Please note that the total (contracted) cost of Residential Care, is normally made up of a combination of the assessed client contribution, and the Council contribution.

However, should a care home decide to charge in excess of the maximum (contracted) charge, then somebody acting on your behalf will normally be required to enter into a separate arrangement (called a Third Party/Additional Cost Agreement), in order to pay the difference in cost - please note that the regulations currently state that a care home resident is not usually permitted to pay this Additional Cost themselves.

Care Home Placements Outside Neath Port Talbot

You are able to choose from a list of Independent or Pobl Homes in this area, or you may decide to choose a care home, outside of Neath Port Talbot – even if you choose a care home out of the Neath Port Talbot area, you could still receive financial assistance from the Council.

However, should you have in excess of £50,000 and make your own private arrangements (in a care home outside Neath Port Talbot and without any involvement from this Council), then you may need to apply to the Council where the care home is actually situated, for any future financial assistance (i.e. when your savings fall below £50,000) – please be advised that a number of factors could determine which Council would be responsible for providing financial assistance, and each case would therefore need to be considered individually.

Please also note that should a care home outside of Neath Port Talbot charge in excess of Neath Port Talbot Council’s contracted charges, then a 3^rd Party/Additional Cost will likely be applied (as explained above), in order that a 3^rd Party agrees to meet the difference in cost.

Residential Care Charges (from April 2023)

NB The above rates would relate to placements made within Neath Port Talbot County Borough Council area – as mentioned elsewhere in this document, any “Out of County” placements would not necessarily be commissioned at the above rates.

Please also note that individual care homes would need to be appropriately registered, in order to provide EMI Nursing Care.