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Income and Capital

What income and capital will be included in the assessment

An individual's ability to contribute to the cost of eligible care and support will take account of the following income, based on a weekly amount:

  • Net earnings from employment
  • Any benefits received including Tax Credits
  • Income from both state and private or occupation pensions
  • Any other income received, including an assumed income from any non-dependant adults living at home.
  • An assumed income from any capital held

Partners income

Where a service user is part of a couple, 50% of any income jointly awarded or held with their partner  will be taken into account when calculating the contribution, for example where Employment and Support Allowance is awarded jointly to a couple.

Disregarded income

Certain types of income will not be taken into account in the financial assessment process. This is known as disregarded income.

  • The Mobility Component of both Disability Living Allowance (DLA) and Personal Independence Payments (PIP)
  • The Enhanced Rate of PIP Daily Living Component. Therefore only including the middle rate as income only where the service user is not receiving night time services.
  • The higher rate element of DLA Care Component. Therefore only including the middle rate as income only where the service user is not receiving night time services.
  • The enhanced rate of Attendance Allowance. Therefore only including the lower rate as income only where the service user is not receiving night time services.
  • £20 of net earned income
  • All benefits or tax credits paid on behalf of dependent children
  • Independent Living Fund payments
  • War Disablement Pension and compensation payments made through the Armed Forces Compensation Scheme

What Capital will be used in the assessment

Any capital such as savings, bonds, stocks and shares, ISAs etc. will be taken into consideration in the assessment. An income will be assumed as being received from any capital in excess of £6,000 for those below state pension qualifying age or £10,000 for individuals of state pension qualifying age or above. The table below outlines how this assumed income will be calculated.

 Disregard capital belowWeekly assumed income
Below State Pension qualifying age£6,000£1 per £250 over £6,000 or part thereof
State Pension age or above£10,000£1 per £500 over £10,000 or part thereof

There is no upper capital limit in the financial assessment and the value of a person's home or other property is not counted as capital