Paying for Adult Social Care

All people in England receiving Adult Social Care services should expect to pay for their care and support. Find out more here.

General information about financial assessments

What is a financial assessment?

The financial assessment calculates the maximum that you can be expected to pay for support services which are provided to you.

In England, Councils have upper and lower capital limits for financial help. Examples of capital include, bank account balances, bonds, stocks and shares, trust funds, buildings or land.

The table below explains the limits.

If you have savings What you will have to pay
Over £23,250 You will pay the full cost of your care and support
Between £14,250 and £23,250 You will pay a contribution from your income (such as pensions), plus a tariff income*, and we will contribute towards your care and support.
Under £14,250 You will pay a contribution from your income (such as pensions), with no tariff income*, and we will contribute towards your care and support.

* The Council assumes that you get income each week from your capital, and this is included in your total weekly income. This is called 'tariff income'.

Tariff income assumes you have an extra £1 per week in income for every £250 (or part of) you have in capital between £14,250 and £23,250. For example, if you had £15,000 in capital this equals £750 more than the lower capital limit of £14,250, therefore you would pay £3 a week in tariff income.

Only the income and savings of the person receiving care and support is included in their financial assessment. If any income, benefits or savings are awarded jointly only 50% will be taken into account in your financial assessment. Please refer to example 2.

If you own the property that you live in, it will only be considered as an asset if you no longer live there as your main home, for example, if you move into extra care or a care home to meet your needs.

What happens if I do not want to tell you about my finances?

If you choose not to tell us about your finances or have a financial assessment, you will be assessed as able to pay and be invoiced for the full cost of your care and support services.

How will the financial assessment be arranged?

This will usually be a telephone call but can be arranged as a face-to-face appointment if that is required.

The Council want to make sure you can understand the information it shares with you. The financial assessment team will contact you to arrange your financial assessment. If you find it hard to read the Council’s letters or if you need someone to support you at appointments, please let the Council know.

If you need information in an alternative format, such as braille, large print, easy read, or interpretation /advocacy services the Council can arrange support to help you.

Can somebody attend the financial assessment with me?

Yes, you can have people with you to support you and offer their views. This could be a carer, family member or friend, or anyone else that you trust.

If you think you will find the financial assessment process difficult and you don’t have anyone to help you, you can arrange for someone called an advocate to attend the assessment to help you get your views across.  If you think this would be helpful you can contact Knowsley’s Advocacy Hub on 0300 3030 624 and tell them you need help with a financial assessment.

Mental capacity is the ability to make an informed decision based on understanding a situation, the options available, and the consequences of the decision. While you are still able to make decisions and express your views, you should think how you want your affairs dealt with if you lose mental capacity in the future. You can create a Lasting Power of Attorney which grants legal authority to an attorney or attorneys to make decisions on your behalf if you lose mental capacity. There are 2 types of Lasting Power of Attorney, and you can choose to make one type or both:

  • health and welfare – this can only be used when you’re unable to make your own decisions and gives an attorney the power to make decisions about things like your daily routine, for example washing, dressing, eating / medical care / moving into a care home / life-sustaining treatment
  • property and financial affairs – this can be used as soon as it’s registered, with your permission, and gives an attorney the power to make decisions about money and property for you, for example: managing a bank or building society account / paying bills / collecting benefits or a pension / selling your home

If you lose mental capacity without a Lasting Power of Attorney in place, an application can be made for a deputyship with the Court of Protection. In certain circumstances the Council must appoint an Independent Mental Capacity Advocate to support and represent you if you lack the mental capacity to make a decision, for example about moving into a care home, and have no one to support you other than paid staff. All actions and decisions taken on your behalf must be made in your ‘best interests’ in line with the Mental Capacity Act 2005.

If you have concerns about an attorney or deputy, such as concerns about the misuse of money or decisions that are not in the best interests of the person they are responsible for, you should report these to the Office of the Public Guardian.

You can find more information about Power of Attorney and Court of Protection, including roles and responsibilities and reporting a concern, here.

If you lack mental capacity to manage your social security benefits, the Department for Work and Pensions can appoint someone else to make claims and receive benefits on your behalf. An appointee is usually a close friend or relative who visits you regularly. There are also organisations that can act as your appointee, for example, a solicitor. An appointee’s powers only extend to the management of social security benefits. You can find more information about becoming an appointee, including roles and responsibilities if someone takes on this role, here.

What if I give away something valuable?

Giving away money or assets (can be capital or income), to avoid care charges is referred to as ‘deprivation of assets’. When the Council is considering whether there has been a deliberate deprivation of assets, it will consider the following:

  • If you knew you would need care and support at the time you gave away your assets
  • If you knew you would need to pay towards the cost of your care
  • If decreasing the amount you would pay for care and support was a significant reason for you giving away your assets

If you have given away some of your money or assets (eg. savings, income or property) to avoid or reduce how much you may pay for the cost of your care, the Council may assess you as if you still had it. The Council may include the full value of any money or assets you have given away in your financial assessment and charges will be applied as if you still have this money to pay towards care.

If you give away your savings, income, or property to a friend or relative, that person may become liable to pay the difference for the cost of your care.

If the Council think there has been a deliberate deprivation of assets, the Council will write to you to gather evidence to make a decision. The Council will make enquiries including obtaining a version of events from you or your representative before making decisions on deprivation of assets. The Council may also ask you to provide supporting evidence for your account. The Council must base its decision on facts and will write to you explaining its decision.

More information on the appeal and complaint process can be found below under the heading 'What should I do if I disagree with the assessment or need more information?' on this page.

What if I am financially assessed to pay the full cost of care?

The outcome of your financial assessment will determine your maximum weekly charge. The amount you pay will be based on the care that you receive. If the cost of your care and support is less than your assessed maximum charge, then you will only be charged the actual cost of your care and support services. If you receive additional care above what is planned, then you could be charged the cost of this additional care. It is important to note that you will be charged for any care that has not been cancelled with notice. For example, if a carer visits your home and you decide, when they arrive, that you do not need the care.

If your capital is more than £23,250 or you do not want to disclose your financial information, then you will be assessed as able to pay and be invoiced for the full cost of your care and support services.

If you are financially assessed to pay the full cost of the care and support you receive at home, you can choose to enter into a private arrangement with the care provider or you can choose for the Council to arrange the care on your behalf.

If you are financially assessed to pay the full cost of the care and support you receive in a care home, you will usually be under a private arrangement with the care home.

The Council reviews the rates that are paid to care providers each year. This may affect the amount you are charged for your care and support.

What happens if I do not pay my social care charges?

You have a responsibility to respond to requests for information in relation to financial assessment applications and reviews, ensure invoices are paid in full and on time, and report any changes in financial circumstances promptly.

If you do not pay the amount that you have been assessed to pay, this may result in further action being taken to recover the debt you owe to the Council.

What should I do if my financial circumstances change?

You must notify the Council of a change to financial circumstances as these can affect your financial assessment. A change in circumstances could include:

  • Income, including Department for Work and Pensions benefits
  • Capital
  • Household expenses, i.e., rent, mortgage
  • Disability related expenses

Please note this is not an exhaustive list and you should notify the Council of any changes to your financial circumstances as soon as possible.

Your financial assessment will be revised, and you will be notified of any change in your weekly charge.

If you do not inform the Council of a change and, as a result of that change the amount you have to pay would increase, it will be backdated to the date the change took effect.

Will my financial assessment be reviewed?

The Council will review your financial assessment every 12 months. This is done in April each year following annual increases to Department for Work and Pensions benefits which will impact the amount you pay.

If your financial circumstances change at any other time, you must notify the Council as this can affect your financial assessment. If you do not inform the Council of a change and, as a result of that change the amount you have to pay would increase, it will be backdated to the date the change took effect.

The Council will write to you to let you know the outcome of any reviews, including any changes to applied charges, and provide a copy of your financial assessment.

What should I do if I disagree with the assessment or need more information?

If you do not understand how your charge has been worked out, or you do not agree with the amount you have to pay, you should contact the Financial Assessment and Charging Team who can explain the calculation to you. You can also ask for the assessment to be reviewed.

It is important that you continue to pay whilst a review is being considered.

Where a disagreement or complaint occurs, the Council will work with you to resolve it and this may involve a review of the financial assessment, an independent review by a senior/manager within the Financial Assessment and Charging Team, or a complaint.

You can submit a complaint to the Customer Liaison Team in the following ways:

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