Paying for residential and nursing care

When you move into a care home

Once your care needs assessment confirms residential care is needed, your social worker will collect some basic financial details and pass them to our financial assessment team. 

If you've recently had a financial assessment for other types of support, we may be able to calculate your charge without repeating the full process. Otherwise, the team will contact you (or your authorised representative) to complete a full financial assessment.

How we work out what you pay

Your charges are calculated in line with the care act 2014. The amount you pay depends on: 

• your income and savings (capital)
• any disability-related expenses
• whether your home is included in the financial assessment

We may ask for supporting documents such as:

• recent bank statements
• pension letters
• property or savings information

Send documents by email: financialassessment@lewisham.gov.uk or by post to Financial Assessment Team, 4th floor, Laurence House, Catford, SE6 4RU

What affects your charge 

Additional factors

• personal allowance: you keep a set amount of your income (updated annually)
• savings disregard: up to £5.75 (single) or £8.60 (couple) if you receive pension credit savings
• tariff income: assumes you receive income from savings between £14,250–£23,250

If your savings drop below £23,250, let us know at least 3 months in advance so we can reassess your charges. 

Property and deferred payment agreements

If you own a home, its value is: 

• ignored for the first 12 weeks after moving into care (12-week disregard) 
• included after 12 weeks unless an exemption applies (eg. Spouse still living there)

You may be eligible for a deferred payment agreement if:

• you have sufficient equity in your home
• you have mental capacity or legal representation (eg. Power of attorney)

We will send you an application pack if you're eligible. 

Interest is charged from day 57 after the agreement ends if the debt is unpaid. 

Choosing a care home 

You can choose any care home in England or Wales that meets your assessed needs. 

If your chosen care home charges more than the Council’s rate: 

• a third-party top-up must be arranged 
• the third party (eg. family) will undergo a financial check and sign an agreement
• if the top-up is unpaid, we may move you to a lower-cost placement or pursue the debt

Giving away assets 

Transferring or giving away savings/property to avoid paying care fees is known as deprivation of assets.

We may: 

• treat the asset as notional and still include it in your assessment 
• ask the recipient of the asset to contribute toward your care fees 
• seek independent legal advice before transferring any assets

Impact on your benefits 

You must inform the DWP of changes in your circumstances, such as moving into care. 

• attendance allowance / DLA care component: stops after 28 days unless you're self-funding 
• DLA mobility component: not affected 
• PIP: may replace DLA for those aged 18–64 

Use the gov.uk website to report benefit changes: 

• report a change of circumstances – gov.uk

Special circumstances 

You may not have to pay if you: 

• receive section 117 aftercare under the mental health act
• have Creutzfeldt-Jakob disease (certain payments and trusts are exempt) 
• have no income or capital available 

Hospital stays

If you are admitted to hospital: 

• we may continue charging to hold your room 
• if your stay exceeds 12 weeks, we may end the placement and reassess your needs
• speak to your social worker before clearing your room

Disagree with your charge?

If you believe there is an error in your financial assessment:

1. Request a review with our financial assessment team
2. If you’re still dissatisfied, you can submit a formal appeal

Email: financialassessment@lewisham.gov.uk.

Write to: Financial Assessment Team, 4th Floor, Laurence House, Catford, SE6 4RU.

Where to get advice

You can get free and impartial advice from:

• Age UK – 0800 169 6565
• Citizens Advice – 0800 144 8848
• MoneyHelper
• Mencap – 0808 808 1111