Tariff income
You pay a weekly assessed contribution if your income, savings and investments are less than £35,000 but greater than £21,500. This amount includes what we call tariff income. Tariff income is where we assume that you have £1 a week extra income for every £250 or part of £250 you have between £21,500 and £35,000.
You are entitled to keep £34.50 a week personal expenses allowance.
You pay a weekly charge from your savings in addition to an assessed contribution from your income if you have savings and investments between £21,500 and £35,000.
Example - your weekly charge
Your weekly income is made up of a state pension of £167.90, a guarantee credit of £25.25 and a savings credit of £1.86
You have savings and investments of £28,500.
First we work out your tariff income.
| Savings over threshold | £28,500 - £21,500 | = | £7,000 |
| Tariff income | £7,000 / 250 | = | £28.00 |
Then we work out your weekly charge.
| Weekly income | £28 + £167.90 + £25.25 + £1.86 | = | £223.01 |
| Personal allowance | = | £34.50 | |
| Savings credit disregard | = | £1.86 | |
| Total weekly charge | £223.01 - £34.50 - £1.86 | = |
£186.65 |
When your savings reach £21,500
The amount you pay reduces as your savings reduce and when you reach £21,500 you no longer pay a weekly charge from your savings but you still pay an assessed contribution from your income.
The fees should cover all of your care needs but you should check with the care home if you have to pay any other charges. Other charges might include the costs of outings, hairdressing and activities.