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