Perth and Kinross Health and Social Care Partnership focus on helping people to retain their independence and to enable them to live at home for as long as possible. However, for those who are unable to safely remain at home, a move to a care home may be the most suitable option.
All homes offering residential or nursing care are commonly known as care homes and these guidelines apply to all types of residential and nursing care accommodation.
Everyone has to make a contribution to the cost of their care home fees. It is the responsibility of the Council to work out how much this personal contribution is by carrying out a Financial Assessment.
The Financial Assessment is carried out in accordance with Perth & Kinross Council's Annual Scheme of Charges and national guidance. This method ensures fairness and consistency in the calculation. It is carried out by a member of the Assessment and Charging Team.
Crisis or permanent residential / Nursing care placements
Income details required for the Financial Assessment
The amount you are required to pay takes into account both your individual circumstances and personal income.
Examples of the information needed to calculate the contribution towards care home fees include:
- State Benefits
- Private and occupational pensions
- Capital such as:
- Savings, e.g. current bank balances and proof of balances (1 and 2 years ago if the care home placement is permanent). Where savings are held jointly with a partner, 50% of this is disregarded in the calculation;
- Investments including stocks and shares, ISA's etc;
- Ownership of property if the placement is permanent
- In most cases, all of the above income will be used to contribute to care home fees.
How savings and capital affect the charge for care
If your total savings and capital are less than £21,500they are not taken into account. It is permissible to keep this for personal use and it will not affect the amount you pay towards care home fees.
If your savings and capital are more than £21,500 and up to £35,000, the Council follows Scottish Government guidance. This supposes that these savings generate an income. To calculate this income, an assumption is made that for every £250 there is £1 earned from this per week.
These are the figures for financial year 2024/25. The Scottish Government usually revises these amounts annually. This calculation formula is not related to interest rates, it is an assumed amount.
For example:-
- £22,500 generates an income of £4 per week
- £25,000 = £14 per week
- £29,000 = £30 per week
If your savings and capital total more than £35,000 you will have to pay the full charge of the care home minus any Free Personal Care and/or Free Nursing Care payment. When your savings are approaching £35,000, you must contact the Assessment Officer so that Council funding can be applied for.
Property ownership
The value of your home will be disregarded and therefore left out of the calculation if a spouse or partner continues to live there, or if you intend to return home after a temporary residence in a care home. Otherwise, the value of the property will be taken into account when calculating the contribution towards the cost of care.
The Assessment Officer will fully explain these property ownership rules in detail during the completion of the Financial Assessment.
Capital deprivation rule
This means that if the Council considers that you have disposed of a capital asset (eg savings or property) in order to reduce their liability for care home charges, the Financial Assessment may be completed on the basis that you are still in possession of that asset.
What happens if financial details are withheld?
If you choose not to reveal your financial details, a Financial Assessment cannot be completed. You will therefore be charged the full cost of the care. However, you may still be assessed as being entitled to receive a Free Personal Care and/or Nursing Care payment.
Free Personal Care and Free Nursing Care
Entitlement to Free Personal Care payments amounts to £248.70 per week and an additional entitlement of a Free Nursing Care payment of £111.90 per week may be available dependent on the result of a care assessment. Personal and Nursing Care payments are made directly to the care home and are shown as a deduction on the invoice you will receive from them.
Personal Allowance
This allowance is set aside to allow you to purchase personal items such as clothes or toiletries. The exact amount is decided by the Scottish Government and is revised annually to take account of inflation. At 2024/25 this is £34.50 per week and this allowance is the minimum amount that you will be left with after paying your weekly fees
What if I can't pay?
Please be assured that we do not want to ask people to pay more than they can afford to. If you are worried about not being able to pay the contribution amount calculated please speak to us as soon as you can so that we can look at your individual situation again.
It is also important that you tell us as soon as possible about any changes in your financial circumstances, e.g. the loss or a reduction in benefits, as any changes to your income will affect your ability to pay and we will need to recalculate your contribution amount in light of this. This includes any income from employment which is permitted through Employment Support Allowance.
Change of circumstances
If you move to another care home or your financial circumstances change, you should advise the Assessment and Charging Team as soon as possible, as this may affect your assessed charges.
Income maximisation
The Assessment Officer is responsible for ensuring that you and your immediate family have applied for, or are receiving, all the benefits to which you are entitled. Assistance with making benefit claims can also be provided
List of care homes
A list of all care homes within the Perth & Kinross Council area can be found on our Directory of care homes.
A paper copy of this list is also available from the Commissioning and Contracts Team by calling 01738 476764.
What happens if the care home I wish to move to does not accept Perth and Kinross Council's approved rate?
When a person requires local authority funding towards their stay in a care home, Perth and Kinross Council will not usually pay more than their approved rate for the care home. If you are looking to move to a care home that does not accept the following approved rates, please urgently contact the Assessment & Charging Team to ensure that any 'top up' fee can be paid. It may be that a third party such as a family member will have to meet the additional cost of your placement.
Perth and Kinross Council's approved rates for 2024/25 are as follows:
- Residential Care Placement - £825.94 per week
- Residential EMI Placement - £948.59 per week
- Nursing Home Placement - £948.59 per week
- Perth & Kinross Council owned residential care home - £1,045.71 per week
- Specialist Care Home Placement - please call us for the approved rate
- Care home owned by another Local Authority - please call us for the approved rate
If Perth and Kinross Council cannot be satisfied that a 'top-up' fee can be met for as long as is required, you may be asked to consider an alternative room, or care home. Please ensure you contact a member of the Assessment and Charging Team as early as possible.
Further information and contact details
Advice and further information about care home charges is available from the:
Assessment & Charging Team
Housing & Community Care
Perth & Kinross Council
Pullar House
35 Kinnoull Street
PERTH
PH1 5GD
Telephone: 01738 476888
E-mail:HCCAssessmentCharging@pkc.gov.uk
Information for self-funding clients in a care home
What does self-funding mean to me?
If you have either declined the opportunity to complete a financial assessment, or have assessable capital higher than £35,000 you are responsible for paying the full cost of your residential or nursing care placement, as per your Personal Outcome Plan agreed with your Key Worker.
If you are assessed by social work as requiring the placement, you are entitled to a free personal and/or nursing care payment as follows:
- Free Personal Care Payment (FPC)- £248.70 per week (all clients receiving residential care)
- Free Personal & Nursing Care Payment (FPNC)- £360.60 per week (all clients receiving nursing care)
Payments of free personal and nursing care are made by the local authority direct to the care home, and are not liable to income tax. The care home will deduct the FPC/FPNC payment from the weekly cost of your placement when invoicing you for your stay.
Are my benefits affected?
If you receive free personal care payments you will no longer be eligible for Personal Independence Payment (PIP) Daily Living, Disability Living Allowance (DLA) Care Component, or Attendance Allowance after 28 days. You must inform the Department for Work and Pensions (DWP) of your change in circumstances immediately in order to prevent any overpayment of benefits.
Attendance Allowance: 0800 7310122
DLA Care/PIP Daily Living: 0800 9172222
If you only receive free nursing care payments your eligibility for benefits will not be affected. Further information on benefits is available at www.dwp.gov.uk.
Is any of your capital life-assured?
Capital with life assurance is fully disregarded from the financial assessment and will not be included in your calculation. If you have included capital which has life assurance attached, when you have determined that you will be self-funding, please contact us urgently to have your contribution reassessed.
Do you own your home?
The value of your main residence is fully disregarded for any temporary stay in a care home.
Change of circumstances
If your circumstances change at any point, please contact a member of the Assessment & Charging Team on 01738 476888 or HCCAssessment&Charging@pkc.gov.uk immediately, in order to ensure that your contribution is calculated correctly.
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