top of page
Search

ASK OUR ADVISERS - What is tariff income?

Tariff income is the contribution an individual is required to make towards the cost of their care when they have savings between the upper support threshold of £23,250 and the lower threshold of £14,250.


The income is calculated at £1 per week for every £250 or part thereof of savings between the two thresholds.


So a person who has seen their savings reduce to £23,250 may become eligible for funding support from the local authority, but they will need to pay tariff income as follows.


Amount of capital above the lower support threshold = £9,000


This equates to 36 slices of £250, so 36 x £1 = £36 per week.


Alternatively, if they had savings of £18,450 the tariff income would be:


Amount of capital above the lower support threshold = £4,200


This equates to 17 slices or part slices of £250, so 17 x £1 = £17 per week.


For capital below £14,250, no tariff income is applied.

61 views

Recent Posts

See All

We all recognise that the risk of developing dementia increases with age. At age 65, one in 700 will be diagnosed while at age 80, the number increases to 1 in 6. By the age of 95, the risk increases

Ian Trenholm, chief executive of the care regulator the Care Quality Commission has said that the profitability of care homes remained at ‘historically low levels’ in 2022/23. Using information from i

The government has increased funding for adult social care to help tackle NHS pressures this winter by £10m. Councils will be able to bid from a pot of £40m – up from £30m – for cash to help prevent h

bottom of page