The calculation
We will contact you for information in relation to your income and capital.
Income
Income includes all pensions, earnings, and most social security benefits. Disregarded income is outlined below. Other disregards will depend on your individual circumstances.
If we advise you that your assessment includes an element of Pension Credit, please ensure that you make an application for this to maximise your income. This is treated as income in assessing your charge, even if you choose not to make a claim.
Income Disregards
- mobility component of any disability benefit is disregarded in full.
- if you are in a care home and your spouse is living elsewhere, half of your personal/occupational pension or payment from a retirement annuity contract can be disregarded.
- if you receive Savings Credit as part of your Pension Credit entitlement, you may receive a disregard up to a maximum of £8.50 per week (single person).
- War Pension and Armed Forces Compensation Scheme payments qualify for £10.00 per week disregard
Capital
Capital includes most savings, shares, bonds, investments and property.
Capital Disregards
- the first £22,000 of your capital.
- some capital which is part of a Trust.
- any capital bonds which are Life Assured.
If your capital totals more than £22,000 but not more than £35,500, you will be treated as receiving income from this. This is called Tariff Income and is calculated at £1 per week for every £250 (or part thereof) which you have over £22,000. This is set by the Scottish Government and is not meant to reflect the amount of interest you might earn from your capital.
If you have capital in excess of £35,500, you will pay the maximum charge for your accommodation costs. When your capital falls below £35,500, you must advise the Care Resource Team.
Property
If your stay in a care home is permanent the value of your home will be treated as part of your capital after 12 weeks.
There are some rules to disregard the value of your property when calculating your contribution and more information on this can be found on our FAQ’s
Deferred payments
It is possible for certain people to delay selling their homes by entering into a ‘Deferred Payment Agreement’. This agreement enables the local authority to pay part of the resident’s assessed contribution of the care home’s fees and recover that money later from the resident’s estate following his or her death or sale of the property.
For more information please see Social Work Charging policy | Scottish Borders Council
Deprivation of capital
If there is evidence that a person has deprived themselves of capital in order to avoid or reduce accommodation charges, then this may still be taken into account when assessing ability to pay.
If anyone has any doubt they should seek advice from the Care Resource Team in advance of taking any actions which may be considered deprivation of capital.
Moving into a care home out with the Scottish Borders Area
If you wish to move to a home outside of the Borders area, we will only pay the rate contracted by the Council in the area of your chosen home. In some circumstances we may only pay the first 3 months Free Personal Care/Nursing Care payments and transfer this responsibility to the local authority for the area where the care home is. This is known as Ordinary Residence.
More information is available in our frequently asked questions page.
Further information is available in the moving into a care home leaflet Social Work Charging policy | Scottish Borders Council
To find out how we use your information Privacy notice – Care Resource team | Scottish Borders Council