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How we calculate disposable income

Yvonne Kaye, Team Manager - August 2010
gatewaytocare@kirklees.gov.uk

The following is a case study example of how we would calculate the disposable income.

Mrs Smith is aged 82 years and receives a state retirement pension of £93.45 and she receives a private pension of £9.00 each week. Mrs Smith also receives £47.80 Attendance Allowance each week. She has savings and investments of £6,200. Based on this income she is also entitled to £86.20 Pension Credit. This will comprise of £ 83.77 Guarantee Credit and £2.43 Savings Credit.

Each year she pays £207.00 council tax. She has additional laundry costs due to a disability.

Related factsheets

How we would calculate Mrs Smith's disposable income:

How we would calculate Mrs Smith's disposable income:
Income Weekly (£)
Mrs Smith - State Pension

£93.45

Private pension

£9.00

Attendance Allowance

£47.80

Pension Credit (Guarantee)

£83.77

Savings

£2.43

Total income

£236.45

Less Income Disregarded

£2.43

Plus Capital Charge

£0.00

Total Income

£234.02

Less Personal Living Allowance

£165.75

Less Allowable Housing Costs

£3.98

Less Disability related expenses

£3.15

TOTAL OUTGOINGS

£172.88

 
DISPOSABLE INCOME

£61.14

Mrs Smith has a care phone and receives four hours of home care service each week.

Mrs Smith would have to pay the following for her service based on a disposable income of £61.14

Charges for home care service each week based on a disposable income of £61.17
Type of Charge Charge Balance
Service Charge
(Paid by you to KMC)

£3.80

£57.37

Home care 4 hours x £10.25 per hour

£41.00

£16.34

In this example Mrs Smith will pay the Care Phone Service charge of £3.80 each week and a contribution of £41.00 each week will go towards the cost of her home care service.

Related factsheets

For further information about how we work out non-residential care charges please see the 'Personal Financial Statement'.

by Email to... gatewaytocare@kirklees.gov.uk
by Phone to... 01484 222258 or 01484 222059
in Writing to...
Client Financial Affairs,
Oakmead,
1c Lidget Street,
Lindley,
Huddersfield.
HD3 3JB

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