Charging Policy for Residential Care Services

Introduction

This policy has been produced in accordance with the National Assistance Act 1948 – Assessment of Resources Regulations 1992 and the guidance issued by the Department of Health ‘Charging for Residential Accommodation Guide (CRAG)’.

The Guide is available on theDepartment of Health website and includes a significant amount of detail on charges for residential care.

Charges will not be applied to After Care Services provided under Section 117 of the Mental Health Act 1983.

This policy takes account of the Race Relations Act 2000 and other associated legislation relating to Equality and Diversity.

As part of Durham County Council, we are an equal opportunities organisation and, as such, is committed to eliminate discrimination and will seek to introduce positive measures to promote equality of opportunity. Our policies, practices and procedures will be guided by corporate policy and strategy and be monitored and reviewed regularly to ensure they accord with the principles of equal opportunities, anti-discrimination and promoting diversity. In providing a service in the community, no individual shall be denied access to our services on the grounds of gender, marital status, race or ethnic origin, disability, religion, age, sexual orientation or political belief. This will include consideration of the eligibility for services. Provision and delivery of services shall be carried out in accordance with the corporate guidelines on Anti-discriminatory practice.

More information will be given to you at the Financial Assessment. We can also provide information on Residential Accommodation.

Calculating the Charge

The charge (service user contribution) will be calculated by taking into account all income, savings and assets and deducting appropriate disregards and allowances such as the Personal Expenses Allowances and the Savings Credit Disregard.

These are set out in the Charging for Residential Accommodation Guide and the County Council has limited discretion to vary these.

Properties

There is a general requirement in the Assessment of Resources Regulations for the value of any property that is owned to be included in the financial assessment.

The circumstances where the value of a property may be disregarded are set out in the CRAG.
In certain circumstances, the value of a property will be disregarded for the first 12 weeks following permanent residence and the criteria for this is set out in the CRAG.
Service users will be offered the opportunity to take advantage of the Deferred Payments Scheme where the value of a property can be deferred from the financial assessment during the lifetime of the resident following which the debt must be repaid.
In accordance with appropriate legislation a legal charge will be placed on a property until the debt is discharged. Details will be given annually on the current level of the debt.
Where a debt accrues, where a legal charge has been placed on a property, the County Council will apply an interest rate equivalent to the Bank of England base rate plus 1%.
Where there is shared ownership of property, the value of which is included in the financial assessment, the apportionment of the value will be based on each owners share of the purchase with an allowance for any proven investment made in the property subsequently.
In respect of ‘Right to Buy’ properties, the minimum value attributable to the service user will be the percentage discount obtained.

Intermediate and Short Stay Care

Where a period of residence in a care home is identified in the care plan, charges will be waived for a period up to a maximum of 6 weeks.

Where a service user is admitted to an alternative care home while awaiting a place in the care home of first choice, only the charges that will be paid when they move to the home of first choice will be payable. This may include the requirement for a third party to pay a top-up.

Respite Care

A full financial assessment will be carried out for respite and short term care though there may be additional sums allowed for ongoing home commitments.

When one partner in a couple enters respite or short-stay care the council will try to ensure that the spouse remaining at home will retain a sum which is at least equivalent to the Guaranteed Credit.

Self Funders

A service user who has sufficient income and/or savings and assets to meet the full cost is required to do so and is usually designated as a self funder.

When social work staff are satisfied that self funding service users have the ability to make their own arrangements or have a family member or other representative willing and able to do so, must make their own contractual arrangements with the chosen care home. Assistance with identifying available care homes will still be given if requested. (N.B. This is a policy change).
Where social work staff are not satisfied that a service user has the capacity, or a family member or other representative to do so, arrangements will be made for our contractual arrangements to be used which will include the costs negotiated by ourselves. Service users in these circumstances will be designated as a full fee payer.
When a service user’s resources reduce to the upper capital limit for self-funding a care assessment is necessary to secure council financial support. Financial support will be accepted from the date of referral for a care assessment or the service user reaching the upper capital, whichever is later.

Deprivation of Resources

We will take any action necessary, including legal action, where it believes that a service user has deprived themselves of resources with the intention of avoiding or reducing charges.

We do not dispute the right of a service user to spend or dispose of their savings/capital from the sum disregarded in the financial assessment but will treat such sums as notional capital, i.e. as if still possessed by the service user, when calculating charges.

Debt Recovery

We will actively pursue the recovery of debts caused by refusal to pay charges.

We acknowledge that we cannot and will not withdraw services when a service user refuses to pay charges but will use our debt recovery procedures.

Fast Track Review/Complaints

All service users paying assessed charges will be offered a review upon request which will examine whether this charging policy has been applied correctly and whether there are any exceptional circumstances that justify a reduction in charges.

The review will be carried out by one of our team managers and the outcome notified to the service user in writing within 3 weeks of the request.
Service users are advised of their right to access our Complaints Procedure and that an appropriate leaflet is included with every care plan produced.

Continuing Health Care

The determination on whether services qualify as continuing health care and therefore free of charge is the responsibility of the Primary Care Trust.

If there is such a determination any charges collected prior to the date of implementation will be reimbursed.

Method of Payment

The preferred method of payment is by Direct Debit.
Alternatively, you will receive an account every 4 weeks, which can be paid in any of the following ways:-

1. At the Post Office/Payzone using a swipe card that we will provide.
2. By returning the payment slip with a cheque to the address supplied.
3. By Debit or Credit card (details will be provided on the account).

The service user will be supported to handle their own financial affairs but where a service user requests, families will be encouraged to handle the financial affairs but we will offer an Appointeeship and Receivership service as a last resort.

Service User Feedback

We welcome feedback from service users on the charging policy and will use it to conduct future reviews. Please complete the online form and contact Social Care Direct.