Paying for care home services | What will I have to pay for care services? | Oldham Council

2. Paying for care home services

What will I have to pay for care services? 

If you are no longer able to live in your own home and there is no other suitable alternative accommodation available, the Council may agree that you need to live in a residential care home or nursing home. This may be on a permanent basis, for a short stay or respite. 

Paying towards the services you receive 

The government says that we need to work out how much you can afford to pay towards the cost of your care and support. We will need to work out if you can afford to pay for any of the social care services you need. 

The amount you pay will depend on your financial circumstances. We will ask you to complete a financial assessment. In the assessment we will ask questions about your income, any savings you have and certain household costs you have to pay, such as your mortgage or rent payments and costs for Council Tax. 

We will use this information to calculate if you have to pay a contribution towards the cost of your social care services. There is a maximum amount that Oldham Council will pay for a residential care or a nursing home and your social worker will discuss these details with you. 

If the care home you choose costs more than this amount, your relatives or friends must pay the difference. This is called a “third party top-up” but we must be certain that this will continue to be paid for as long as you need to stay in the care home.

Working out what you will have to pay 

The value of your home will be taken into account after 12 weeks, but there are exceptions to this rule, for example, if your partner remains living in your home. If you own any other property or land we will take the value of that into account from the beginning. You may choose to sell your home to pay your residential care fees. 

Alternatively, the Council may be able to give you a loan, which is charged against your property, to pay some or all of your fees. This is called a Deferred Payment Agreement and is a legally binding contract. Please read our leaflet about ‘Deferred Payments’ for further information about the scheme. We will take most of your income into account when working out what you have to pay, but you will be left with a weekly allowance to buy personal items or pay for other activities. You will have to pay for the full cost of your care if you have more than £23,250 in savings or other assets. 

If you have between £14,250 and £23,250 in savings or other assets we will assume you have a certain level of income from this. We will ignore any savings or assets you have which are worth less than £14,250. 

Short stays and respite Your income and savings are taken into account in a similar way as if you were going in to permanent residential care. However, we ignore the value of your own home and make an allowance for any continuing housing costs you might have whilst you are in the care home. 

Depending on the timing and length of your stay you may have to pay towards both your residential care services and any social care services you have in your own home or in the community. 

Residential assessment and reablement 

You will have to pay towards the cost of the residential accommodation and other services provided, but the assessment and reablement costs are paid for by the Council. 

Your income and savings are taken into account in the same way as if you were going into residential care for a short stay or for respite. 

What if I don't want a financial assessment? 

If you choose not to have a financial assessment you will be asked to pay the maximum charge for the services you receive. 

You can ask for an assessment at any point if you change your mind.

Deprivation of assets 

You must not give away any of your income, savings, investments, property or any other assets in order to avoid paying social care charges. If you do, we will assume you still have them when working out what you should pay.

Continuing Health Care

If you have complex, ongoing health care needs, the NHS may pay for some or all of your care. You can find out more about Continuing Health Care funding at:


If you would like to speak to someone about financial assessments you can contact the Client Finance Team,