Financial assessment – residential and nursing care

Care and support services are not free. Most people have to pay something towards their own care and some will have to pay for all of the costs.

Your local authority may cover some or all the cost of care, however this is means-tested. This depends on how much money you have, and what level and type of care and support you require.

Download and print our guide to residential and nursing care

If the local authority considers that you require support that it can provide, we will undertake a financial assessment. This assessment will determine:

• whether the local authority will meet all the cost of your care
• or whether you will need to contribute towards your care cost
• or whether you will have to pay the full cost.

You or your financial representative will be sent a link to the BetterCare online financial assessment form including guidance on how to complete. In some cases, a financial assessment officer will contact you to arrange a telephone appointment to undertake the financial assessment. This will determine whether you qualify for financial help from the local authority. If you do not, you are regarded as a self-funder.

If you have capital (excluding property) below the £23,250 limit you can receive Council funding. If you have capital (excluding property) above the £23,250 limit you will have to self-fund your care.

How much will I contribute towards my care

The financial assessment will look at:

• existing income, such as state pension, occupational pensions etc.
• the amount of Income Support/Pension Credit you would receive if you went into residential or nursing care

Some income is disregarded in full such as Disability Living Allowance or Personal Independence Payment mobility component. Some income such as War Pensions is either fully or partially disregarded depending upon who it was awarded to. Your contribution is your total weekly assessable income, less a standard amount set by the Government for your weekly personal expenses. This is £30.15 per week in the financial year 2024/25.

How is funding affected if I own a property

Depending on individual circumstances, it is decided as part of the assessment whether a property is included in your assessment of charges. There are some circumstances where property is disregarded which are:

• If your partner will continue to live in the property.
• If you have a relative aged 60 years or over living in the property.
• If you are responsible for a child under 16 years living in the property.
• If you have a relative who is incapacitated and lives in the property.
• The Council can use a discretionary power to disregard a property in exceptional circumstances.

The local authority will not reclaim any funding for the first 12 weeks of your permanent placement if your property is considered in their assessment.

Deferred Payment Agreements

The Deferred Payment Agreement Scheme is designed to help you if you have been assessed to pay the full cost of your residential care but cannot afford to pay the full weekly charge because most of your capital is tied up in your home.

The scheme offers you a loan from Coventry City Council using your home as security. It does not work in the same way as a conventional loan. The Local Authority does not give you a fixed sum of money when you join the scheme. The Local Authority pays an agreed part of your weekly care and support bill for as long as there is sufficient equity in the property.

NHS contribution towards nursing care

If you require nursing care, you will receive an assessment of your nursing care needs from the NHS, to calculate the amount which can be paid towards the overall cost of your care home. The assessment will determine if you are entitled to continuing healthcare funding, where the NHS will pay the full cost of the nursing care placement. If you are not entitled to continuing healthcare funding, the NHS may pay a standard contribution.

Choosing a care home which charges more than the Adult Social Care support level

You can choose a care home which charges above the Local Authority support level, if a third party agrees to pay the difference between the charge and the support level from their own funds. This is called a third party top up. Anybody who agrees to pay a third-party contribution should note that contributions may increase over time

More information or appeal against the charge I have been asked to pay

If you feel your charge is unreasonable, you have the right to appeal. Please contact the Financial Assessments team for details about the appeals process.