Financial assessment
Overview
Lancashire County Council will complete a financial assessment to work out what you may need to pay when you receive care and support in your own home. This includes things like home care, day support, short breaks, and direct payments.
We will only ask you to pay what you can afford
If your income and assets are:
less than £23,250, you will be eligible for some support to help pay for your care, but you may have to contribute.
more than £23,250, you will have to pay the full cost of your care.
If you choose not to complete the financial assessment or disclose your financial circumstances, we will assume you can afford to pay the full cost of your care, and we will charge you that amount.
How the financial assessment is completed
A Financial Assessment Officer will contact you or your representative to complete the financial assessment.
They will ask for information about:
Your income (pensions, benefits, etc.)
Your savings
Your bills (rent, mortgage, council tax, water)
Your disability related costs
Your expenditure (regular essential costs)
They will ask for evidence, such as:
Bank statements (up to 2 years)
Utility bills
Receipts for expenses
You can also submit this information by completing our online financial assessment form and providing any evidence through it.
In some cases, we may already have the necessary information from the Department and Work and Pensions.
If you are completing the application on behalf of someone, we will also need details of your power of attorney, deputy or financial representative. In this case, you will need to provide the following documents:
Power of Attorney documentation
Appointee forms
Court of Protection Order
How we calculate your weekly contribution
The Council follows the Care Act 2014 and statutory guidance (Care and support statutory guidance - GOV.UK) to calculate your contribution. The assessment is completed as follows:
Your weekly income
Plus
Tariff income (if your savings are above the lower limit)
Less
Minimum Income Guarantee (money you must keep for daily living)
Less
Housing costs (rent, mortgage, council tax, water)
Less
Disability related expenses
Equals
Net Disposable Income (NDI)
You will pay a 100% of your NDI, but never more than the cost of your care.
If your NDI is below £5 per week, you will not be charged.
How we treat your capital, assets and savings
Your main or only home is not included as an asset if you live in it. However, other property, land or assets may be included. We will treat your capital as follows:
Below £14,250 – not included within the assessment
Between £14,250 and £23,250 – we include tariff income (£1 for every £250)
Over £23,250 – you will be assessed to pay the full cost of your care
Disability Related Expenses (DRE)
These are additional costs you pay due to your disability or medical condition.
You can choose:
A standard £10 per week, OR
A full DRE assessment if you think your costs are higher (you will need to provide receipts)
Examples of DREs:
Extra heating
Extra laundry
Special diets
Disability equipment
Community alarm
Transport costs due to disability
Bedding or clothing needs
Private care that meets your assessed social care needs
Payments to family members are not allowed unless there are exceptional reasons.
Guidance on disability related expenditure on GOV.UK
After your financial assessment
We will send you a letter confirming your assessed contribution, including a breakdown of how it has been calculated.
The letter will include:
Details of your assessed weekly charge
The maximum you may have to pay should your care increase.
Information on how you pay your assessed contribution
A Direct Debit mandate
Please read your confirmation letter carefully and check all the information is accurate. If you have any concerns or questions, you can contact us at the details provided below.
Annual Reassessment
We will review your financial assessment on an annual basis. This reassessment considers any changes to pensions and benefits, as well as any expenses you may have. If we require further information to complete this, a member of the reassessment team will contact you.
If you disagree with your charges
Your assessed charge is based on the information you provided during your financial assessment.
You can appeal if you think (including evidence):
Something has been calculated incorrectly
Important information was missed
You should write to:
Senior Care Finance Assessment Manager
Care Finance Assessment Team,
Exchequer Services,
Lancashire County Council,
PO Box 100,
County Hall,
Preston,
PR1 0LD
Changes you must tell us about
It's important to tell us as soon as possible if there are any changes to your circumstances. If you do not, this may affect your contributions.
Please tell us if:
Your savings go above or below £23,250
Your income changes
A partner or family member moves out
You sell your home
Your financial situation changes for any other reason
We may reassess your charge automatically if your benefit or care changes.
How to contact the Financial Assessment team
You can contact us if you have any questions or if you need to tell us about changes to your circumstances
Care Finance Assessment Team
Exchequer Services
Lancashire County Council
PO Box 100
County Hall
Preston
PR1 0LD
Email: fin.assessment@lancashire.gov.uk
Telephone: 0300 123 6720 Option 1
Overview
Lancashire County Council will complete a financial assessment to work out what you may need to pay when you move into a Residential or Nursing Home.
We will only ask you to pay what you can afford.
If your income and assets are:
less than £23,250, you will be eligible for some support to help pay for your care, but you may have to contribute.
more than £23,250, you will have to pay the full cost of your care.
If you choose not to complete the financial assessment or disclose your financial circumstances, we will assume you can afford to pay the full cost of your care, and we will charge you that amount.
How the financial assessment is completed
A Financial Assessment Officer will contact you or your representative to complete the financial assessment.
They will ask for information about:
Your income (pensions, benefits, etc.)
Your savings
Your bills (rent, mortgage, council tax, water)
Your disability related costs
Your expenditure (regular essential costs)
They will ask for evidence, such as:
Bank statements (up to 2 years)
Utility bills
Receipts for expenses
Details regarding the ownership of your home
You can also submit this information by completing our online financial assessment form and providing any evidence through it. Apply for assistance with funding
In some cases, we may already have the necessary information from the Department and Work and Pensions.
If you are completing the application on behalf of someone, we will also need details of your power of attorney, deputy or financial representative. In this case, you will need to provide the following documents:
Power of Attorney documentation
Appointee forms
Court of Protection Order
How we calculate your weekly contribution
The Council follows the Care Act 2014 and statutory guidance (Care and support statutory guidance - GOV.UK) to calculate your contribution. The assessment is completed as follows:
Your weekly income
Plus
Tariff income (if your savings are above the lower limit)
Less
Personal Expenses Allowance (Lancashire Adult Social Care Policy Portal)
Less
Housing costs for Short Term Care (rent, mortgage, council tax, water)
Equals
Assessed Contribution
How we treat your home/property
We only take the value of your former home into account if you are moving permanently into a care home i.e. if you become a permanent resident. A permanent resident is one for whom the agreed intention is for the resident to remain in residential care.
We do not take it into account if:
your partner or civil partner still lives there.
a relative who still lives there who
is aged 60 or over,
or is aged under 18 and a child whom you would be liable to maintain,
or is incapacitated
if you are only staying in a care home for a short time and you intend to go back to your own home later
12 week property disregard
If you are assessed as needing to move into permanent residential care, you may be entitled to the 12-week property disregard. This means that the value of your property will be disregarded as capital for the first twelve weeks of moving into the care home.
Deferred Payment Scheme
You may not want to sell your home straight away. This scheme allows you to delay paying some or all of your care fees. What is the Deferred Payment Scheme
The Council pays the care home on your behalf, and you repay later.
You may qualify if:
You are in permanent care
You own a home that is not disregarded
You have less than £23,250 in savings (not counting the home)
The Council can place a legal charge on the property
How we treat your capital, assets and savings
We will treat your capital as follows:
Below £14,250 – not included within the assessment
Between £14,250 and £23,250 – we include tariff income (£1 for every £250)
Over £23,250 – you will be assessed to pay the full cost of your care
Top Up Payments
Currently under review
After your financial assessment
We will send you a letter confirming your assessed contribution, including a breakdown of how it has been calculated.
The letter will include:
Details of your assessed weekly charge
The maximum you may have to pay should your care increase.
Information on how you pay your assessed contribution
A Direct Debit mandate
Please read your confirmation letter carefully and check all the information is accurate. If you have any concerns or questions, you can contact us at the details provided below.
Annual Reassessment
We will review your financial assessment on an annual basis. This reassessment considers any changes to pensions and benefits, as well as any expenses you may have.
If you disagree with your charges.
Your assessed charge is based on the information you provided during your financial assessment.
You can appeal if you think (including evidence):
Something has been calculated incorrectly
Important information was missed
You should write to:
Senior Care Finance Assessment Manager
Care Finance Assessment Team
Exchequer Services
Lancashire County Council
PO Box 100
County Hall
Preston
PR1 0LD
Changes you must tell us about
It's important to tell us as soon as possible if there are any changes to your circumstances. If you do not, this may affect your contributions.
Please tell us if:
Your savings go above or below £23,250
Your income changes
A partner or family member moves out
You sell your home
Your financial situation changes for any other reason
We may reassess your charge automatically if your benefit or care changes.
How to contact the Financial Assessment team
You can contact us if you have any questions or if you need to tell us about changes to your circumstances
Care Finance Assessment Team
Exchequer Services
Lancashire County Council
PO Box 100
County Hall
Preston
PR1 0LD
Email: fin.assessment@lancashire.gov.uk
0300 123 6720 Option 1
Getting the right financial information and advice can help you make good choices about how to pay for your care and support. It can also help you plan for the future and understand the best way to use your money. Financial Information and Advice – Lancashire Adult Social Care Policy Portal
Lancashire County Council has a duty to help you find independent and impartial financial advice. This means advice that is not linked to the council and is focused on what is best for you.
Why financial advice is important
Good financial advice can help you:
Understand the cost of care at home or in a care home
Know what you may need to pay, and why
Learn the different ways to pay for care
Plan for long term costs
Make safe decisions about your money
Make sure you are getting all the benefits you are entitled to
If you have your own home, savings, or investments, advice can help you understand how care costs may affect your finances over time.
You may find advice helpful if you:
Need extra income to help pay for care
Need to make changes to your home
Need long term residential or nursing care
Already live in a care home and are paying full fees
Are a family member or attorney supporting someone else
Types of financial advice
There are two main types of financial advice:
Financial Information and Advice – Lancashire Adult Social Care Policy Portal
1. General (unregulated) advice
This advice is usually free and gives general information about money, benefits, and care costs.
Examples include:
Citizens Advice
National websites that explain care costs
PayingForCare (general advice and tools, such as a care fees calculator)
Lancashire County Council Welfare Rights Service Welfare Rights Service - Lancashire County Council, which provides free and confidential advice to make sure that you are claiming all of the benefits you are entitled to.
This type of advice helps you understand your options but does not recommend specific financial products.
2. Regulated financial advice
This advice is given by trained financial advisers who are approved to provide detailed, personalised guidance.
You usually pay a fee for this service.
Regulated advice is helpful if:
You want to understand how to use your savings or property to pay for care
You want advice on pensions, investments, or financial products
You need long term planning support
Lancashire County Council cannot recommend a specific adviser, but you can find qualified advisers through the Society of Later Life Advisers (SOLLA). Society of Later Life Advisers - SOLLA SOLLA advisers specialise in laterlife money issues, including care costs.
Website: societyoflaterlifeadvisers.co.uk
Helpline: 0845 303 2909
How we support you
Adult Social Care staff can:
Help you find the financial information you need
Explain why independent advice may help you
Explain the difference between free advice and paid (regulated) services
Direct you to websites, organisations, and helplines
Ensure you understand your care charges and payment options
We will not refer you to an individual adviser, but we will direct you to places where you can choose one yourself.
Before giving financial information, staff will check whether you have:
A Deputy (Court of Protection)
A Lasting Power of Attorney for property and finance
This ensures we speak to the correct person.
Where you can get additional financial information and advice
You can get financial information:
On our Adult Social Care website
When you first contact us
During your care assessment, planning or review
From Lancashire County Council Welfare Rights Service
From national helplines and websites such as
Age UK Telephone: 0800 169 6565
Independent Age Telephone: 0800 319 6789
Alzheimer's Society Telephone: 0300 222 1122
Sense for Deaf blind people Telephone: 0300 330 9250
Carers UK Telephone: 0808 808 7777
Housing Advice Telephone: 0800 377 7070
From SOLLAregistered financial advisers
We will also help you understand:
What you may have to pay
When you need to pay
Why you are being charged
How your financial situation affects your contribution
How to manage your money safely
How to avoid financial abuse
If you are unhappy with financial advice
If you are unhappy with any financial advice you receive from an external organisation, you can contact the Financial Ombudsman Service.
They can look into complaints about financial advisers and financial services.
This factsheet explains Lancashire County Council's charging arrangements for when you receive care and support in a residential or nursing care home.
Type of care
Short Term and returning home – not exceeding 8 weeks in accordance with our Short Breaks Policy.
Temporary care and returning home within 12 months.
Residential reablement care which exceeds 6 weeks.
Long term care and support delivered to you in a residential or nursing home on a Permanent basis.
Please note: Lancashire County Council charges for Non-Residential care and Short Breaks under our Non Residential Charging Policy.
This fact sheet explains Lancashire County Council's charging arrangements for when you receive Non-Residential Care Services.
Different arrangements apply for people living in residential and nursing homes.
What services do I have to pay for?
If you are in receipt of any of the following services, you may be charged for the services you receive:
Home Care (care provided in your own home)
Care & Support in prisons
Short Breaks overnight in a residential care home.
All Short Breaks with effect from 1 January 2024
Direct Payments/Personal Budgets
Supported Living Schemes
Outreach Services
Shared Lives
Technology Enabled Care