Paying for my care

While some care and support services are available for free, you may have to pay for others . If you receive these services from adult social care, you may have to complete a financial assessment to see if you need to pay towards the cost of your care.

This depends on:

• the type of care and support you need,
• your income (through employment, pensions or benefits for example),
• your capital (savings or properties for example), and
• your expenditure/monthly outgoings.

Charges for services differ depending on if you live in your own home or in a residential or nursing care home.

When carrying out a financial assessment, we will only look at the income, capital and expenses of the person receiving care. 

If your savings and assets are less than £23,250, you will be eligible for means-tested support to pay for your care. If they are more than this amount, you will have to pay for all your chargeable care.

Our approach to charging is explained in detail in our charging policy for adult social care. Or you can learn more about paying for your care from these frequently asked questions.

Financial reassessments take place annually. If your circumstances change, contact our financial assessment team to arrange a reassessment.

Tel: 020 7364 2038
Email: financialassessmentteam@towerhamlets.gov.uk

Paying for care at home

A social care social care practitioner will give you a financial assessment pack that contains:

• a consent letter
• declaration form
• declaration form guidance notes.

Most sources of income will be considered while others, including housing-related and disability-related expenditure (DRE) will not be.  

We will also deduct the minimum income guarantee — the minimum amount of income service users need to live on set by the government.

Paying for care in a care home

Anyone receiving full funding from the council must use their income (including benefits) to pay for their residential care, excluding their personal expenses allowance set by the government.

The value of your property may not be considered under certain circumstances. If it is, its value during the first 12 weeks stay in residential care does not count. This allows for time to decide whether to sell/rent the property, or to enter into a deferred payment agreement with the council.

If you have needs that require the support of a nurse and stay in a nursing home instead, the cost for this support will be paid by the NHS Continuing Health Care (CHC). This is a flat rate called Funded Nursing Care (FNC). These nursing fees will also be excluded from your financial assessment as they are paid by the NHS and free of charge.

Top-ups

Following your support planning discussion, we will let you know the status of your personal budget. If your preferred care arrangements or accommodation cost more than what we pay for that care, you have the option to pay the difference. This is called a ‘top-up’. Your social care practitioner will discuss this option further with you.

Top up policy

Deferred payments

Should you be assessed as having to pay the full cost towards your residential care, but are not able to pay the full weekly charge you can pay via a deferred payment.

For many people their savings or capital is tied up in their home, by setting up a deferred payment the council offers you a loan, paying the ‘deferred’ amount until the value of your home is released and you are able to repay the loan.

This is not like a traditional loan with a fixed amount from the start, but continues for as long as you need it to. Your weekly contribution will be worked out from your income and other savings with the council loaning you the balance each week.

You can discuss the option of a deferred payment with your Social Care Practitioner or during the financial assessment process.

Deferred payment example

Mr Smith is 86 and lives in a residential care home that costs £500 per week. He owns his own home that his wife still lives in.

His financial assessment says that he will have to pay the full cost towards his residential care however the majority of his savings are tied up in the house meaning that he can only afford to pay £200 per week at the moment.

1. Mr Smith has a deferred payment agreement in place meaning that the council is loaning him £300 per week until he is able to repay on the sale of the house.
2. Mr Smith lives in the residential care home for 100 weeks meaning the total cost of his stay is:
   100 weeks x £500 per week = £50,000
3. During his stay Mr Smith contributed £20,000 and the council loaned him £30,000.
4. On the sale of the house the £30,000 plus interest will need to be repaid to the council.

Learn more about our 'Charging deferred payments policy'  

Paying for care via direct payments

If you choose to manage your personal budget via direct payments, the financial assessment needs to take place before payments begin. If the assessment rules you should pay towards your care, that amount will be deducted from your personal budget. This means you don’t need to make any payments to us.

Direct payment example

If your personal budget is £200 a week and you pay £20 a week, you will receive £180 a week as your personal budget.