The financial assessment for care at home will look at your loved one’s income (the regular money they have coming in) and their capital (savings and assets they own that have monetary value).
What is included in the financial assessment for care at home?
– All income – from property rental, investments, pensions and any benefits that are in your loved one’s name
– Bank and building society accounts
– National Savings and Premium Bonds
– Stocks and shares
– Shares in a family business
– Regular savings and investments, including ISAs
What isn’t included in the financial assessment for care at home
– The value of your loved one’s home
– Personal possessions (see also Which? guidance Gifting assets
– Surrender value of life insurance policies/annuities
– Investment bonds with a life assurance element
– The mobility component of disability living allowance (DLA), or personal independence payment (PIP) equivalent (see Which? guidance Benefits for older and disabled people).
– The war pension scheme mobility supplement
– War widows special allowance (also referred to as war widows special payments)
– Some charitable payments
– Pension savings credit (see Step 5 Pension Credit in Benefits for older and disabled people)
– Certain trust funds, such as compensation for personal injuries
Your loved one should seek advice from an independent financial adviser (IFA) if they have complex financial arrangements such as money in trust, certain bonds or compensation payments, or shares in a family business. The Society of Later Life Advisers (SOLLA) provides specialist advice to older people looking to fund care.
Rules for couples
A person being assessed for care at home should be treated as an individual. If they are married or living with a partner, the partner’s finances should not be included in the financial assessment, and there is no expectation that the partner should contribute to the cost of their care.
If your loved one owns property, assets or shares savings with another person (a married partner, family member or friend), it might be a good idea to split any joint accounts into separate accounts so it is easier to see who has what for the purposes of the financial assessment and paying for care in general. Be warned that there are rules about ‘giving away’ assets – see Gifting assets.
In Wales, if both individuals in a couple are eligible for an assessment, they can choose whether to have a joint assessment or an individual assessment.