Local Authority Assessment & Financial Assessment Flashcards
What is the purpose of a financial assessment conducted by local authorities?
The financial assessment determines an individual’s financial capacity to contribute toward care costs by evaluating capital, income, and other assets, helping to establish eligibility for funding assistance and the amount they are expected to contribute.
What are the capital thresholds for funding eligibility in England and Northern Ireland?
The upper limit for funding eligibility is £23,250, and contributions are expected from those with capital over £14,250. Tariff income is calculated at £1 per week for each £250 of capital over the lower threshold.
What is the Personal Expense Allowance (PEA)?
The PEA is an allowance provided to care recipients for personal expenses, covering costs such as newspapers, toiletries, or hairdressing, and is not used to pay for basic care.
What are Deferred Payment Agreements?
Deferred Payment Agreements allow individuals to defer care costs, with repayment after the sale of their property. Local authorities can charge interest on these loans, and there are specific eligibility criteria for this arrangement.
What is deliberate asset deprivation?
Deliberate asset deprivation occurs when individuals attempt to reduce their assets to avoid paying care costs, such as transferring assets, paying off debts, or placing assets in irrevocable trusts. Local authorities can recover assets in such cases for up to six years.
What information must be provided to individuals about their financial obligations during the means test calculation?
Local authorities must inform individuals about how their contributions are calculated based on income, capital, and other factors, ensuring they understand their financial obligations and are not overcharged.
What are the eligibility criteria for Deferred Payment Agreements?
Eligibility criteria typically include owning a property, having sufficient equity in the property to cover the deferred costs, and meeting local authority guidelines for deferring payment of care costs.
