Where English Social Service Departments arrange and charge individuals for a place in a care home, including older people, the financial assessment they use to determine whether the individual should either:

• pay the fees completely out of their own resources
• or if they are eligible for financial assistance how much the local authority should pay towards their fees and how much of their income they should contribute

is carried out in line with regulations and the Charges for Residential Accomodation Guide (CRAG).

From the 6th April these have been amended and the changes include:

• 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 form £8.15 to £8.45

In addition, local authorities power to seek payments from liable relatives is repealed.

If an individual requires a care home registered to provide nursing, English local authorities are not allowed by law to pay for the time a registered nurse spends providing nursing care and  monitoring and supervising nursing care delegated to a non-registered nurse such as a care assistant. This may instead be met by a non-means tested payment, known as NHS funded  nursing care, which is paid by the relevant Primary Care Trust direct to the home who should then deduct this amount from their fees to the individual. From the 6th April in England this has increased to £106.30 (and £146.30 for those with preserved rights to the higher band prior to October 2007).

There have also been similar, though not identical, changes to the Scottish, Welsh and Northern Irish regulations. Contact EAC's advice line 0207 820 1343 for details.