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Paying for Your Care
This page has lots of information about paying for your care. Click on the links below to find out more.
Getting help from the Council to pay for your care
We'll help you to pay the fees for residential care if we think this is the kind of help you need, and if we think you can’t afford to pay for it yourself. All residents in residential and nursing homes have to pay something towards the cost of their place. The amount is worked out according to a national set of rules, and will vary depending on your circumstances. Most of your income, including your state benefit, goes towards paying your fees. However you’ll be left with a weekly amount for your own use, called your Personal Allowance. From April 2008 the Personal Allowance is £21.15 every week.
Together with one of our Financial Assessment Visiting Officers we’ll ask you to complete a financial information form and produce documents as evidence of your income and capital.
You may be given a ‘Provisional Financial Assessment’ while we're undertaking a full assessment of your financial circumstances. The ‘Provisional Financial Assessment’ will be subject to a four-weekly review pending the final financial assessment. It's possible that your final financial assessment may differ significantly from your ‘Provisional Financial Assessment.’ If so it will be backdated to the start date of your service.
We’ll pay the difference between your contribution and the fee for your place in the home, as long as the home doesn’t charge more than we would expect to pay. We set a price each year that we feel is reasonable to pay for care in a home.
- For residential care this is called the Purchasers Standard Fee (PSF), and if a home meets a higher environmental standard we pay an additional amount.
- For nursing care this is called the Purchasers Personal Care Rate (PPCR), and if a home meets a higher environmental standard we pay an additional amount.
Details of the prices from April 2008 for places in Sheffield are given below. For more information about this contact our Finance Assessment Section on (0114) 273 4440 or (0114) 273 4613 or email financial.assessments@sheffield.gov.uk.
Fees for residential and nursing homes
- Council or Sheffield Care Trust run residential homes =£402
Other residential care homes
Standard residential care
- Purchaser's standard fee = £327
- Purchaser's standard fee plus Higher Environmental Standard = £329
High dependency/Functional mental illness
- Purchaser's standard fee = £360
- Purchaser's standard fee plus Higher Environmental Standard = £364
Elderly mentally infirm
- Purchaser's standard fee = £368
- Purchaser's standard fee plus Higher Environmental Standard = £372
Nursing care
Standard nursing care
- Purchasers Personal Care Rate = £364
- Purchasers Personal Care Rate plus Higher Environmental Standard = £370
Elderly mentally infirm
- Purchasers Personal Care Rate = £376
- Purchasers Personal Care Rate plus Higher Environmental Standard = £382
Learning disability
- Residential = £304
- Nursing = £248
Physical disability/sensory impairment
- Residential =£300
- Nursing = £300
Mental health
- Residential = £269
- Nursing = £331
Substance misuse
- alcohol/drugs (residential) = £420
If your place at the home costs more than the amount we will pay, you’ll need to have a relative, a friend or a charity willing to pay the difference while ever you live there. They’ll have to sign an agreement to pay the additional cost of your care. If at any time they’re unable to pay this amount you may be asked to move to another home. You can’t use your own money to pay the additional cost.
You would be well advised to get independent financial advice if you're considering living in a residential or nursing home. You can also speak to the person carrying out your assessment. If you have a question about your finances you can also contact the Financial Assessments section, telephone (0114) 273 4440 or (0114) 273 4613 or email financial.assessments@sheffield.gov.uk.
We recommend all new residents contact the Department of Work and Pensions to check if they qualify for Income Support/Guaranteed Pension Credit to help pay towards the cost of staying in the home. You should always notify the Department of Work and Pensions of any change in your circumstances, such as when moving into a care home.
Are the charges the same for residential care and nursing care?
If a nursing assessor decides you need nursing care the nursing part of that care will be funded by Sheffield Primary Care Trust. You’ll still have to pay for the accommodation and personal care you receive in the home. Unless you pay the full fee for your care yourself this won’t affect your contribution assessed from your income and capital.
How do you work out my capital?
Capital is the value of any cash or savings you have, together with anything you own that could be sold - apart from personal possessions. Your capital doesn't include any money you regularly receive from a pension, charity or other organisation — this is your income. The Government rules on assessing your care charges from capital has different levels that change the amount you have to pay.
- If you have capital less than £13,500 it will be ignored, and your charge will be assessed on your income alone. You may qualify for Pension Credit/Income Support, and we’ll pay the remainder of your fees up to the Purchaser’s Standard Fee.
- If you have capital over £13,500 but under £22,250 your charges will be assessed on your income and capital. In most cases you’ll qualify for Pension Credit/Income Support, and we’ll pay the remainder of your fees up to the Purchaser’s Standard Fee. As your capital reduces towards £13,500 you’ll qualify for more Pension Credit/Income Support, and this will reduce the amount we'll have to pay towards your care. So it’s important you notify both the Council and the Department for Work and Pensions of all changes in your capital and income so that you get the right help paying your fees.
- If you have capital over £22,250 you must pay the full cost of your care. This is known as self funding. To help you pay the fees you may be entitled to Attendance Allowance /Disability Living Allowance care. If a nurse assessor decides you need nursing care you’ll also qualify for a payment from Sheffield Primary Care Trust.
How much will my capital add to my fees?
If your capital is between £13,501 and £22,249 the cost of your care charges from capital will increase by £1 per week for every £250 of capital you have and part thereof.
- So if you’ve £17,800 capital your care charges from capital will add an extra £18 to your contribution to the fees ((£17,800 – £13,500) ÷ £250 = £18).
- If you’ve £13,700 capital your care charges from capital will add an extra £1 to your contribution to the fees ((£13,700 – £13,500) ÷ £250 = £1).
Will my home be counted as capital?
Sometimes we can ignore the value of the property that you live in before entering permanent residential care. For instance when someone continues to live in the property who is
- your spouse or partner
- a relative aged 60 or over
- a relative who is substantially disabled.
If someone continues to live in the property and doesn’t meet one of these categories, you can ask us to use our discretion to ignore the value of the property. We may be able to do this if the person has cared for you and has been living with you for the last five years, but we look at the circumstances in each case separately.
If you’ve over £22,250 in capital you’ll pay the full fee for your care. If your capital includes the value of property that we can’t ignore under one of the categories above, we’ll not include its value as capital until the start of week 13 or the date the property is sold if sooner. You’ll have until the end of week 12 to decide if you wish to become a permanent resident or return home. If you choose to remain in the home the value of your property will be added to your capital, and your fees will increase to the full fee.
From the beginning of week 13 whilst your capital without the value of your property is more than £3,000 you’ll have to pay the full cost of your fees. If you don’t sell your property and your available capital reduces to less than £3,000 we can provide an interest free loan to help you pay your fees. Interest will be charged on the loan from the date of your death at 1% above the Bank of England base rate. The loan will be recovered when your property is sold, or from your estate after your death. If a loan is provided we’ll place a legal charge on your property as loan security.
A loan from us may work out to be more expensive than making alternative arrangements to help you pay your fees. You should consider other ways of paying your fees such as
- a contribution from a friend or relative
- a grant or loan from someone other than us.
- an arrangement with the home to pay part of your fees until your capital becomes available when you can then repay the difference.
In these cases, you may be able to get Attendance Allowance or Disability Living Allowance
(Care Component).
You should carefully consider the different ways that you might pay for your care fees until your capital becomes available, and then decide which is best for you and your family.
Here are some things you might want to consider
- Who could you ask to help with paying your fees (the Council, friends, the Home, a Bank, a Charity)?
- Would you eventually have to pay back any contributions made?
- Would you have to pay interest on any money borrowed, or give any security for the loan?
- Which benefits will be available for you to use towards paying for your fees?
- How much of your own resources will be needed to pay towards your fees?
You may decide not to ask us for help with your fees when you move into a home. Later if you find the arrangements you have made are no longer working you can still ask us for a loan, as long as you have less than £3,000 available capital and still own your property.
Remember if you get any financial help from us, even if it is a loan, you may lose your right to Attendance Allowance or Disability Living Allowance (Care Component).
I own my home and have over £3,000 in additional capital. Can I use my money to pay for a residential care home or nursing home that costs more than the Council will normally pay?
Provided your assessment shows that you need residential care or nursing care, you’ll be entitled to help towards your fees for the first 12 weeks of care. If you want to receive this help, you’ll be covered by the same rules as everyone else who receives help from us, even though you’ll be responsible for paying the full cost after the first 12 weeks.
During your first 12 weeks of care you may use your own money to pay for a place in a residential care home or nursing home, which costs more than we'll normally pay. However should you receive help from us from the beginning of your 13th week in care, you’ll only be able to be placed in a home which costs more than the Purchaser’s Standard Fee if someone else, like a relative, friend or charity, agrees to pay the additional cost. You can’t use your own money to pay the difference.
So how will I know who is paying what?
Anyone who gets financial help from us has to sign a Placement Agreement when they move into a home. The Placement Agreement is a legal document signed by you, us, the home, and any other person contributing to your care fees. It gives details of how much will need to be paid each week by you, by us, and by any other person contributing to your care fees.
Because this agreement is a Legal Contract, it is important that you understand what you’re signing. If you’re in any doubt ask the person carrying out your assessment or get independent advice.
What about my benefits?
People living in a home generally can’t get benefits more than the basic retirement pension and any Pension Credit if applicable.
Pension Credit/Income Support — Depending on your capital and income, you may be able to get Pension Credit/Income Support to top up your income even if you get council funding or a loan. The Department for Work and Pensions may ignore the value of the property where you live before entering into residential care if you’re taking reasonable steps to sell it.
Attendance Allowance and Disability Living Allowance — If you’re disabled, or need help with personal care, you may be able to claim Attendance Allowance or Disability Living Allowance (Care Component) as long as you pay the full fee for your place in the home and don’t get financial help from us. If we pay part of your fees your Attendance Allowance/Disability Living Allowance (Care Component) payment will stop after four weeks, or earlier if you have already been in hospital or short term care.
You should also notify the Attendance Allowance/Disability Living Allowance (Care Component) office of any change in your circumstances. You can use these benefits to pay some of your care fees. This may make it easier for you to afford to pay the fees yourself without our help. It could also mean that you’ll not use up your other monies as quickly.
If you’re receiving any benefits from the Department for Work and Pensions, you should tell them when you move into a care home. You’ll need to enclose information on when you were admitted to care and which home you’ve moved to.
More information
For more details about our funding and loans contact the Financial Assessment Section on (0114) 273 4440 or (0114) 273 4613 or email financial.assessments@sheffield.gov.uk.
For advice about Department for Work and Pensions benefits contact your local office on (0114) 259 0000.
Independent Legal Advice is available from Solicitors (who may charge for their services) and Advice Centres, and from Age Concern Sheffield on (0114) 250 2859.
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