Care and Support Charging and Financial Assessment Framework

Contents

• 1. Summary
• 2. Legal context
• 3. Principles of this framework
• 4. Care and support services provided free of charge
• 5. Chargeable care and support services
• 6. Care and support financial assessment policy
  • 6.1 Capital
  • 6.2 How is a financial assessment carried out?
  • 6.3 Deprivation of assets
  • 6.4 Delays to the financial assessment process
  • 6.5 Financial assessment reviews
  • 6.6 Change in circumstance and use of financial information
  • 6.7 Debt recovery
  • 6.8 Debt Management and Relief
  • 6.9 Financial assessment and charging for care home accommodation
  • 6.10 Financial assessment and charging for non-residential care and support
  • 6.11 Annual Review
  • 6.12 How to pay your charges for care and support
• 7. Section 117 and social care packages of care
• 8. Mental capacity to manage finances
• 9. Residence when moving to accommodation outside Bath and North East Somerset Council
• 10. Deferred Payment Agreements (DPAs)
• 11. Interim funding policy
• 12. Choice of accommodation and top up payments
• 13. Funding agreement
• 14. Direct Payments
• 15. Equality Impact Assessment
• 16. Reviewing the Charging and Financial Assessment Framework
• 17. Appeals
• 18. Annex A
• 19. Annex B
• 20. Annex C
• 21. Annex D
• 22. Annex E
• 23. Glossary of terms

6.1 Capital

Capital limits 

The Government sets upper and lower capital limits to provide statutory guidance to Councils on when a person can afford to pay a charge towards their care and support. Annex B – capital limits schedule shows the current upper and lower capital limit. The limits are reviewed by the government every year.

What is Capital

Capital resources are assets such as money in a bank or building society account, investments, stocks and shares, buildings, land etc. Some capital is disregarded by the financial assessment and the details of this are set out in the Care Act, Regulations and Guidance4 .

If your total capital is less than the lower capital limit you will pay any assessed charge based on your income only.

If you have a partner and you hold a capital asset in joint names you will be treated as having a 50% share of that capital asset.

If your capital assets are above the upper capital limit you will be treated as self-funding and will be required to pay the full cost of your care and support. We can support you to arrange your own care.

If you do not live in a care home, you have the right to ask the Council to arrange your care and support. The Council will charge you the full costs of your care and support.

If after a financial assessment the value of your assets is assessed to be below the upper capital limit but more than the lower capital limit you will be required to pay a charge from your capital, this is called tariff income Annex B – capital limits schedule shows how the tariff income is calculated.

If after a full financial assessment or where the Council has already concluded your assets are below the lower capital limit you will be required to pay a charge based on your income.

Notional capital

If you deprive yourself of capital assets in order to reduce or avoid charges for care and support we may complete your financial assessment as if you still had those assets. The value of those assets is known as notional capital. For more information see deprivation of assets

• 4The Care and Support (Charging and Assessment) Regulations 2014 Part 3(12), Part 5, Schedule 1, Care and Support Statutory Guidance Annex B and Annex C, also See Annex B.