Local authorities must follow government rules from the Charging for Residential Accommodation Guide (CRAG) to work out how much you will need to pay towards your care home fees.

How much you pay will be based on your financial assessment. This will be carried out by the local authority. If you refuse to complete a financial assessment form you will be liable to pay the full cost of care.

The financial assessment will look at your earnings or pensions and any other potential source of revenue you may have, how much you have saved and your capital invested in property. You would normally be expected to contribute all your income towards the care home’s fees except £22.60 per week you are allowed to keep for personal expenses. However, some types of income are not taken into account in the assessment, including:

  • The mobility component of Disability Living Allowance
  • Pension Savings Disregard
  • Some charitable payments
  • War Pension Scheme mobility supplement
  • War Widows Special Payments

Attendance Allowance or the care component of Disability Living Allowance (whichever you claim) will be stopped once you have lived in the home for 28 days if the council contributes to the cost of your care home fees. If you pay your fees entirely, you will still be able to claim these disability benefits.