Personal Expenses Allowance

Gee87

Hi,

A friend of mine is retired and now living in a care home, and I've been helping her organise her finances. However, I'm little confused about the Personal Expenses Allowance (PEA) and hoping someone could shed some light!

My friend is now in full-time residential care after not being able to cope at home alone any longer. She doesn't have any cash savings but does own her home, which is currently empty and I presume will be sold and most of the profit going to pay off the care home bill when she passes away. She receives a state pension and a little from a personal pension.

So, my question is, does the local authority have to leave her with a PEA of £24.90 per week? Whilst she does exceed the £23k threshold because of her home, it's not money she can get old of.

Thank you!

xylophone

She doesn't have any cash savings but does own her home, which is currently empty and I presume will be sold and most of the profit going to pay off the care home bill when she passes away.

Do you mean that your friend has a deferred payment agreement with the local council?

See here for information about income etc.

https://www.moneyadviceservice.org.uk/en/articles/deferred-payment-agreements-for-long-term-care

xylophone

See also https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs10_paying_for_permanent_residential_care_fcs.pdf

The local authority must let you to keep a Personal Expenses Allowance (PEA) of £24.90 a week. You should not be asked to put your PEA towards the cost of any of your basic care if you are a permanent or temporary care home resident. It is for your own personal use.

Gee87

Thanks for the replies - they help a lot!

I hadn't come across the disposable income allowance for homeowner when looking