TOP-UP PAYMENTS

One of the most contentious issues that arises on the CareAware Helpline is that of care fee top ups and in particular, the reasons why these are required and who can make them.

Under the Charging for Residential Accommodation Guidelines, (CRAG), top ups by the resident when the local authority are funding are not permitted and can only be made by another individual or third party.

These restrictions on first party top-up payments under standard Social Services funding arrangements cause considerable distress. Many residents and families see it as unreasonable that their savings, below the upper capital limit, cannot be used as they choose and many feel that if they want to make a top up they not in a position to provide a third party top-up and as a result, the basic right of choice may be compromised with individuals prevented from selecting a home which has a higher fee structure than the local authority tariff rate.

Local authorities in some regions effectively turn a blind eye to the practice of first party top-ups, on the basis that if they were to aggressively enforce the rules, it would simply fuel demands for higher contract rates. However, in other areas, there appears to be a much more rigid approach with social service departments taking every opportunity to intervene in fee price negotiations even for privately funded residents.

There are however, two specific circumstances under which first party top-ups can legitimately be made, whilst local authority funding is being provided. The first is where the resident is subject to the Local Authority 12 week property disregard and the second situation is as part of a Deferred Payment Agreement.

A full assessment of the position is provided in the CareAware Top-Up bulletin

	Top-up Bulletin For a copy of the CareAware Bulletin
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