Department of Health

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Residential care

This page contains publications and guidance to local authorities on charges for residential accommodation.  

Advice and guidance

The Department can explain the relevant legal framework which applies to charging arrangements. However, the Department of Health cannot comment in detail on individual cases. The responsibility for interpreting and applying the National Assistance (Assessment of Resources) Regulations 1992 and the Charges for Residential Accommodation Guide (CRAG) rests with local authorities. It is for each local authority to consider the evidence presented and to make the appropriate decision taking into account all the available information, taking its own legal advice where appropriate. Anyone who has a complaint about a local authority's charging decision should take this up with the authority concerned through the authority's statutory complaints procedure.

Enquiries about the framework for charging should be made by e-mail to

Charging for Residential Accommodation Guide (CRAG) 2009

Published: 06/04/2009

Where a local authority places a person in residential care it is required to carry out a financial assessment of the individual and charge them such sums as they are assessed as being able to pay. The charging regulations and the Charges for Residential Accommodation Guide (CRAG) are reviewed annually. Changes to the residential charging regulations come into force from 6 April 2009. S.I. 2009/597 uprates certain items in accordance with established formulae. The upratings are as follows: Personal Expenses Allowance increased from £21.15 to £21.90. Lower capital limit increased from £13,500 to £14,000. Upper capital limit increased from £22,250 to £23,000. Single person's savings disregard increased from £5.45 to £5.65. Couple's savings disregard increased from £8.15 to £8.45. In addition, local authorities’ power to seek payments from liable relatives is repealed - changes to the regulations are set out in S.I. 2009/ 462 and S.I. 2009/580.

Personal Expenses Allowance

Gateway number: 11251

Where a local authority places a person in residential care it is required to carry out a financial assessment of the individual and charge them such sums as they are assessed as being able to pay. However, the local authority must leave the person with a weekly personal expenses allowance (PEA). The PEA, currently £21.90, is intended to enable residents to have money to spend as they wish, for example on stationery, personal toiletries, treats and small presents for friends and relatives.

There have been calls by a number of organisations for level of the PEA to be significantly increased. In January 2008, Ministers undertook to consult to seek views on whether the existing level of PEA is appropriate. These views would have helped inform consideration of the future of the PEA.

However, the need to use finite resources to maximum benefit has removed any possibility of an increase to PEA of more than the annual uprating. Ministers have therefore decided not to consult on the issue. A Ministerial statement announcing this was laid before Parliament on 27 January 2009. A part 1 equality impact assessment relating to this decision is attached.

Pensions Credit and the Savings Disregard

Including consent form that councils may use to access detailed benefits information from Pension Service and Jobcentre Plus offices and worked examples of how the Savings Disregard is calculated. The savings disregard examples will be updated shortly to reflect the April 2004 values.

Deferred payments

Management and operation of deferred payments, under section 55 of the Health and Social Care Act 2001.

Proposed changes to residential care charges from April 2006

This consultation paper advised the Local Government Association (LGA), councils with social services responsibilities, care trusts and other interested parties of proposed changes to the system for residential care charges which were made in April 2006.

Consultation Paper - October 2004

This consultation looked at changes to the financial assessment for residential accommodation. The changes took effect on 4 October 2004. The consultation paper which outlined these changes may be accessed by the links below.

Public consultation on the transfer of Residential Allowance: consultation outcome

Gateway Ref : 3581

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