Paying for care in a care home

Use this guide to help you calculate the cost of your care, or someone else’s, in a care home. Find information on the Personal Expenses Allowance and deferred payments.

Example of how your contribution is calculated

Your contribution towards the cost of your care will depend on your circumstances.

Here is an example:

Jane Bloggs is 71 and has developed dementia. She will need to move into a residential care home to receive the support that she needs.

Capital assets Amount
Savings in bank account £15,250
Any other assets £0
Total assets £15,250
Weekly income Amount
Tariff income (calculated from the value of capital) £4
Income from pensions £130
Income from benefits (excluding Attendance Allowance) £40
Disability Living Allowance (DLA) or Personal Independence Payments (PIP) £0
Any other income £0
Total weekly income £174

Jane Bloggs’ assessed charge is £174 per week. As she will be receiving residential care in a care home, she is entitled to a personal allowance of £25.65 per week.

Deduct the personal allowance from the assessed charge (£174 minus £25.65) and that leaves £148.35.

Jane would therefore pay £148.35 per week towards the cost of her residential care.