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LAC (2006)12: Charges for residential accommodation - CRAG amendment No 25

This circular announces amendments to the Charging for residential accommodation guide (CRAG) which came into force on 10 April 2006.

This circular:

  • Announces the revised Personal Expenses Allowance (PEA) of £19.60, which is to come into force on 10 April 2006.  The PEA applies to all care home residents receiving help from councils with social services responsibilities (hereafter referred to as "councils") to meet the cost of accommodation provided under Part 3 of the National Assistance Act 1948.  Councils are also reminded of the purpose of the PEA.
  • Announces the revised capital limits of £12,750 (lower capital limit) and £21,000 (upper capital limit), which are to come into force on 10 April 2006.  Councils are also reminded of the effect of the revised capital limits on charges for home care.
  • Announces the revised savings disregards of up to £5.05 per week for individual supported residents aged 65 and over and up to £7.50 per week for couples, which are to come into force on 10 April 2005.
  • Reminds councils of the Department's encouragement of local authorities to exercise their discretion NOT to apply the liable relatives rule, as set out at Section 11 of the CRAG.

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