If your needs assessment finds that you require care in your own home, we'll develop a care and support plan to understand what services are necessary to meet your needs.

We'll then calculate how much the care and support will cost. This is known as your personal budget.

Your personal budget will include your own contributions towards the cost of this care as decided by the financial assessment as well as our contribution.

To find out what your contribution will be towards the cost of your care we will then need to conduct a financial assessment.

Sections in this guide (click title to view)

1. Calculating your contribution to your care

When conducting a financial assessment we'll take into consideration your income and capital assets.

Your income includes:

Your capital assets includes:

  • savings
  • money from investments, but not the value of your home.

Having capital below or over £23,250

If your capital is worth more than £23,250 then you'll need to pay for the full cost of your social care. If you expect your capital to fall below the £23,250 threshold after you begin paying for your care please let us know.

Even if you're not eligible for financial assistance, we can arrange your care and support services at your home for you. At present, we don't charge an administration fee to do this.

If your capital is less than £23,250 then the amount you're expected to pay towards your care will be means-tested under the Care Act 2014.

If the total value of your capital is £14,250 or under it will be disregarded when calculating your contribution and only your income will be taken into account.

If the amount of your capital assets is between £14,250 and £23,250 then you'll be asked to pay £1 a week for every £250 interval within this range.

The table below explains how this works in greater detail.

Value of capital assets Amount to pay What this means
Capital assets of £15,250 £4 a week There are 4 intervals of £250 above the £14,250 threshold: 4 x £250 = £1,000
Capital assets of £16,999 £10 a week There are 10 intervals of £250 above the £14,250 threshold (as the value of assets is £1 below the next interval): 10 x £250 = £2,500

Using this information, we'll work out the total amount of your weekly income and earnings from capital.

We'll then deduct any allowable expenses (such as rent or mortgage payments) and any protected income (such as the Minimum Income Guarantee) from your weekly income. The remaining figure is your assessed charge (the amount you have been assessed as able to pay towards your social care).

Paying the assessed charge

If the combined amount of your income and earnings from capital are less than your Minimum Income Guarantee then you won't have to pay towards the cost of social care in your own home.

You'll never be asked to pay more than your assessed charge towards the cost of your care, but you may pay less.

You'll pay the:

  • assessed charge if the weekly cost of care outlined in your personal budget is more than the amount of your assessed charge
  • lesser charge if the weekly cost of care outlined in your personal budget is less than your assessed charge.

For example, if your assessed charge is calculated to be £40.50 per week and the weekly cost of your care is £100 then you will pay £40.50 per week towards your care. If your assessed charge is £134 per week and your weekly cost of care is £73 then you will pay £73.

You may also be entitled to benefits that you are not currently receiving. The Every Pound Counts team can assist you with this.

2. Personal budgets and direct payments

Your personal budget will detail the cost of care needed and a breakdown of how this cost is shared between us and you.

We can manage your budget, organise your care and support and pay for services from your budget for you.

You're also entitled to ask us to have the whole amount of your personal budget paid to you as a direct payment so that you have more choice and control when selecting care services that meet your needs.

Direct payments

Some people prefer to choose which organisation provides their care or assistance.

If you've been assessed as eligible for us to cover some of the costs of your care then you may be able to request a direct payment.

This allows you to receive a payment from us to pay for your own choice of care. However, it must be used to pay for care deemed to meet the needs established in your needs assessment, and can't be used to buy things like clothes or food.

If you're eligible to make a contribution towards the cost of your own care then this will be deducted from direct payments.

3. Minimum Income Guarantee (MIG)

When receiving care and support in your own home, you're entitled to a MIG to ensure that you keep a level of income which covers your living costs.

This amount is set by the Department of Health and is reviewed annually. The amount that you are entitled to will vary depending on several factors such as your age and whether you are married.

For the financial year 2018/19 the rates are as follows:

test MIG a week
Single person over the state pension age £189
Single person between 25 and the state pension age £131.75
Single person under 25 £112.75

If you're part of a couple and either one or both of you are over the state pension age, your Minimum Income Guarantee is £144.30.

If the combined amount of your weekly income and earnings from capital are less than your Minimum Income Guarantee, you won't have to pay towards the cost of care in your own home.

If you have a disability, are a carer or have a dependent child then you will be entitled to extra premiums - a full breakdown of these rates is in the MIG weekly rates section.

You can also find more information about how much you are entitled to as your Minimum Income Guarantee from the Every Pound Counts team.

4. MIG weekly income rates

The government sets out a weekly Minimum Income Guarantee for people receiving care in their own home. This amount is based on your age and whether you are married, have a dependent child and have a disability. These rates are reviewed annually.

The table below shows the Minimum Income Guarantee rates for individuals in varying circumstances for the financial year 2017/18.

Single adult between 18 and 25 Weekly amount per person
basic rate £72.40
with a disability premium +£40.35
with an additional enhanced disability premium (DLA high rate care or PIP enhanced daily living component) +£19.70
with a carers premium + £43.25
Single adult between 24 and pension credit age Weekly amount per person
basic rate £91.40
with a disability premium +£40.35
with an additional enhanced disability premium (DLA high rate care or PIP enhanced daily living component) +£19.70
with a carers premium + £43.25
Single adult over pension credit age Weekly amount per person
basic rate £189
with a carers premium + £43.25
Adult in a couple where one or both people are between 18 and the pension credit age Weekly amount per person
basic rate £71.80
with a disability premium +£28.75
with an additional enhanced disability premium (DLA high rate care or PIP enhanced daily living component) +£14.50
with a carers premium + £43.25
Adult in a couple where one or both people are between 18 and the pension credit age Weekly amount per person
basic rate £144.30
with a carers premium + £43.25

It is important to note that these rates are per person.

If, for example, you are an adult in a couple where one or both of you have reached the credit pension age then you are both entitled to £144.30 per week. Your total Minimum Income Guarantee together would be £288.60 per week.

Additional premium

An adult with a dependent child in the same house will get an extra £83.65 per child.

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