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Charging for Residential Care

Local Authorities may charge for the care they provide or arrange in residential care homes. The National Assistance (Assessment of Resources) Regulations 1992 provides the framework for charging. To help local authorities interpret and implement these regulations the Scottish Government has provided Charging for Residential Accommodation Guidance, sometimes referred to as CRAG:

Deferring the Costs of Residential Care

Deferred payments were introduced in July 2002 under the Community Care and Health (Scotland) Act 2002. They allow people to avoid selling their homes up-front to meet their care home fees by entering into a legal agreement to have part of their fees paid by their local authority and the balance settled from their estate.

Guidance on Deferred Payment Agreements is set out in Circular No. 13/2004:

Personal Expenses Allowance (PEA)

The Personal Expenses Allowance is the weekly allowance that publicly funded residents in care homes are allowed to retain from their income for personal expenses. The current rate from April 11, 2016 is £25.80 per week and is increased annually in line with average earnings.

This allowance is intended for personal items such as:

  • Personal toiletries
  • Gifts for friends and family
  • Stationery
  • Other minor items

Local authorities should not expect residents to use the Personal Expenses Allowance on services that have been contracted by the local authority, or have been assessed as necessary to meet the residents' needs.