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.