Charges for respite care

The local authority will assess the person’s financial situation to decide if they should pay, and if so, how much. This is called a ‘financial assessment’.

What is a financial assessment?

The person with dementia (or their carer or relative) will be asked to complete some forms about their finances. Someone from the local authority may visit to help the person fill in the forms.

In these forms, the person with dementia will have to report on two things: 

• income – this refers to any money the person receives regularly. For example, a pension or certain benefits (such as Universal credit or the 
  guarantee credit element of Pension credit)
• capital – this refers to any other assets the person has. This includes savings and investments. It does not include the person’s main home.

Care at home

If respite care is provided in the person’s own home, or in the community, the local authority can ask them to pay a ‘reasonable’ amount towards the cost. 

If the person has less than a certain amount of capital (£23,250 in 2023), they need to be left with enough income to cover living costs. This includes their:
1. Housing costs. Under the charging regulations, housing costs mean 

• mortgage repayments, 
• rent or ground rent, 
• council tax  
• certain service charges.

2. Disability-related expenditure. Any outgoings due to their disability that are not being met by the local authority. For example, pendants, community alarms and specialist food.

3.  Minimum income guarantee (MIG). This is set as a weekly amount of income. The person’s income must not be reduced below this level. It varies on their circumstances, such as if they are single or in a couple, over or under state pension age, a carer or disabled. 

The person must keep enough of their income for the combined living costs outlined above. They may be able to keep more, but this amount is the legal minimum you can be left with. 

If paying for respite and any other care they need leaves them without enough for these, the local authority will have to pay the shortfall.

If someone has over £14,250 (as of 2023) in capital, they will be expected to pay a contribution from their capital. The local authority won’t be expected to cover the whole shortfall.

Residential respite in care homes

Most people entering respite in a care home are classed as short-term residents. This is because their care should be no longer than eight weeks.

Self-funders should agree a rate with the care home in advance. In some cases, a short-term stay may become a permanent one. Care homes should therefore also provide key information on charges if that were to happen.

Charges for short-term residents, who are eligible for local authority funding, depend on the local authority. The local authority has the option to charge as if the person is receiving care at home, following the rules outlined above.

However, this is their choice, so they don’t have to. You may wish to ask for your local authority’s policy on this.

The main difference is if they are assessed for ‘care at home’, they must be left with no less than their Minimum income guarantee (MIG). 

If the local authority doesn’t charge short-term residents for ‘care at home’, they only keep their Personal expenses amount (PEA) from their income. 

This is set nationally at £28.25 per week for 2023/24. Although it can be higher in some circumstances, this is usually a lower amount than the Minimum income guarantee.

Either way, as the person will be returning home, their property will not be included. They must keep enough to cover any housing costs and disability-related expenditure they have.

Other types of funding

You, or the person you care for, may be able to get help with respite care funding. This could be from a charity, grant-making trust or benevolent fund. This includes ex-service organisations that support people who have been in certain jobs or industries. 

Your local carers’ centre can advise on what is available in your area. To find your local carers’ centre, you can visit our Dementia Directory. There may also be national organisations that can help. Turn2Us can give you more information on this. 

Carer’s allowance during residential respite

If the person with dementia receives respite care while staying in a care home, Carer’s allowance entitlement can continue for up to 12 weeks. However, it may end sooner than this.

For you to be eligible for Carer’s allowance, the person you care for must be receiving a ‘qualifying benefit’. This includes: 

• Disability living allowance (DLA) 
• Personal independence payment (PIP) 
• Attendance allowance (AA). Unless they are a self-funder, those benefits will usually stop 28 days after they go into a care home. Your Carer’s allowance will continue until their entitlement to the qualifying benefit stops.

You should speak to the DWP to discuss any change of circumstances that could affect your benefits. Or any benefit of the person you care for. This includes stays in hospital and respite in care homes.

Unless they are a self-funder, those benefits will usually stop 28 days after they go into a care home. Your Carer’s allowance will continue until their entitlement to the qualifying benefit stops.