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Permanent Residential Care Charges (Adults)

Valid until 31 March 2024.


This page provides basic information about charging for permanent residential care.

The charging criteria is based on the guidelines given in the National Assistance Act 1948 (Assessment of Resources) and is updated on an annual basis.

In local authority managed homes, the authority must charge the full cost of providing the accommodation. Where the local authority is satisfied that a resident is unable to pay the full cost, a financial assessment must be completed on the service user’s ability to pay.

Since Community Care was introduced in April 1993, Local Authorities have also become responsible for residential care costs in voluntary and private homes.

Residential Care

What is Residential Care?

Residential care is for people who cannot continue living in their own home, even with support from home care services. You can stay in residential care for a short time (known as respite care), over a longer period or permanently. You would stay in a comfortable furnished room (in some places you could bring your own furniture with you) and staff are usually available 24 hours a day.

A residential care home normally provides accommodation, meals, and ‘personal care’. Personal care can include such things as assistance in getting up or going to bed, washing, dressing and using the toilet.

Residential Care Charges - 1 April 2023 to 31 March 2024

Orkney Islands Council Residential Care Homes

  • Total Weekly Income (1).
  • Less Personal Allowance (2).
  • Less Income Disregards (3).
  • Weekly Assessed Charge (4) = (1-2-3).

Less than £20,250 - no impact on weekly charge.

Between £20,250 and £32,750 - for every £250 of capital over £20,250, £1 of notional weekly income assumed.

More than £32,750 - maximum charge is due.

The full cost of care in 2023 to 2024 is £1,350 per week. Over 65s are entitled to free personal care of £233.10 per week reducing the weekly charge to £1,117 per week.

The increase in the full cost of care charges for 2023 to 2024 is due to the increase in costs incurred to providing accommodation.   

Independent Care Homes

The assessed charge for service users is calculated as per OIC residential care homes.

The full charge for residential care in 2023 to 2024 is set as per COSLA guidelines at £739.43 per week. Over 65s are entitled to free personal care of £233.10 per week reducing the weekly charge to £506.33 per week.

The full charge for nursing care in 2023 to 2024 is set as per COSLA guidelines at £855.78 per week. Over 65s are entitled to free nursing care of £338 per week reducing the weekly charge to £517.78 per week.

What happens to a service user’s property when they enter residential care on a permanent basis?

If the resident owns their home, the local authority will generally take the value into account when working out how much capital they have. However for the first 12 weeks following permanent admission, the value will be disregarded from the assessment of capital.

The property will also be disregarded if it is occupied in whole or part by:

  • Husband or wife, civil partner or unmarried partner.
  • Relative who is over 60.
  • Relative under 16 (if resident has to support them).
  • Relative who is incapacitated or disabled.
  • Divorced or estranged partner, who is a lone parent with a dependent child.

The term ‘relative’ is defined in Scottish Government Guidance.

The Local Authority may also decide to ignore the value of the house in other exceptional circumstances.

Other Assets

These will be taken into account in line with regulations and according to each person’s individual circumstances.

This information is also available in the leaflet in the 'Related Downloads' section of this page, and gives basic information only. The regulations are complex and apply in different ways to different people depending on their personal circumstances.

All charges are subject to financial assessment, as described in the leaflet.

For more information contact: Joan Jones, Finance Officer, Orkney Health and Care, Telephone 01856873535, extension 2614.

Council Charges

Further Health Care charges are detailed from page 80 of the latest 'Council Charges Register' available from the 'Related Links' section of this page.

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