Adult Social Care - Care Charging Policy Review - Consultation

• We Don't Charge the Full Price of Care: Right now, if a person is asked to contribute, that contribution is considered against 92% of the actual cost of their care. Most other councils make people pay the full cost where they are self-funders.
• We Don't Look at All Your Available Money: When figuring out how much you can pay, Hackney only considers three-quarters (75%) of the money you have left over after basic expenses. Most other councils look at all (100%) of that money.
• We Have a Limit on Weekly Charges: Hackney has a rule that no one pays more than £250 per week for care at home or in the community. This limit stays the same no matter how expensive the care is or how much money someone has. Most other councils either don't have a limit, or their limit is much higher.
• How We Handle Disability Benefits is Similar to Others: When calculating how much someone pays, Hackney automatically ignores a quarter (25%) of certain disability benefits. This is something that councils tend to do differently, but the majority of councils do look at your disability benefits.
• Changes to the Technology-Enabled Living (TEL) Service: Historically, Hackney Council has provided its Technology-Enabled Living (TEL) service free of charge to residents not eligible under the Care Act 2014, a more generous approach than many neighbouring boroughs. However, due to increasing costs and the ongoing digital phone transition, we are now proposing moving to a model where these residents will be charged a small contribution for the service. This change will bring Hackney's approach in line with most other neighbouring boroughs, which already charge for similar services.
• Proposed Blue Badge Fee Alignment in Hackney: Hackney is one of the few UK councils not charging a £10 Blue Badge fee; to align with this standard practice and government guidance, Hackney proposes introducing a £10 fee for all Blue Badges.

Overview and benchmarking
 
Like all local authorities, LBH asks all residents who are set up with a package of care following a Care Act Assessment (the initial determination of care and support needs, encompassing an individual’s needs, goals and wellbeing) to complete a Financial Assessment Form (also known as a CA1). This form allows the Council to ‘means test’ a fair charge for the cost of care. This charge is known as the ‘client contribution’; it is calculated using information about a service user’s pensions, earnings, benefits, savings and essential costs such as rent, council tax and water rates. 

In 2024, we compared our charges with 27 other councils. We found that our charges are much lower. The 27 councils we spoke to charge 100% of the service cost. They also look at 100% of a person's income when deciding how much they can pay. In Hackney, we only charge for non-residential packages based on 92% of the cost of service and take into account 75% of people’s assessable income. It was also rare for other local authorities to implement a capped maximum charge for non-residential care, with only 2 out of the 27 surveyed local authorities also holding a max charge. Where other boroughs did have a cap, it was significantly higher than Hackney’s (Newham’s at £400 and under review, and Redbridge at £711). 

Disability disregard benchmarking was more challenging due to the variety in the ways in which local authorities apply disability benefit disregards. It was found that 14 out of 22 local authorities surveyed did not provide any automatic disregard for disability benefits. However, when looking at the 7 of 25 local authorities who do automatically disregard a certain proportion, it appears LBH is in line with the average automatic disregard. 

Given that Hackney is such an outlier in terms of the reductions in the cost of care that we offer through our care charging policies, and an increasingly unsustainable budgetary position in the context of an ageing population and limited central government funding, the following non-residential care charging changes are being proposed:

Proposed Change 1: Remove the maximum charge cap (currently £250 per week):

Removal of the maximum charge cap would mean that if you have been financially assessed and it is found you have the financial ability to pay for the full cost of care, you will have to pay the full cost. 

Proposed Change 2: Move from charging based on 92% of the cost of service to 100%:

We currently charge based on 92% of the care cost, but we might increase this to 100% (the full cost of care).

Proposed Change 3: Move from 75% of assessable income taken into account to 100%:

LBH (and other local authorities) look at a person's income and any savings or assets; we do not consider the value of a main home, which must be disregarded when a person is living within it. We then deduct spending on essential items, income we say we will ignore (i.e. child benefit, pension credit), and the income that the Department of Health and Social Care sets as minimum income guarantee levels each April. The amount that is left after these items have been taken away is called your ‘assessable income’ and is charged at 75%. If a resident does not have accessible income, we will not ask them to pay for the services they receive. Information for residents on charges for non-residential care services and the booklet for residents can be found here.

Proposed Change 4: We propose to reduce the amount of disability benefits we automatically disregard from the financial assessment of client contributions from 25% to 20%:

Disability Related Expenditure (DRE) is automatically disregarded when calculating care charges for individuals with disabilities. This means that the council will automatically disregard a certain sum of money that would otherwise be counted towards a person's contribution towards their care costs. This process simplifies the financial assessment and ensures disabled people are not charged more than they can afford. It is worth noting that residents can ask for additional disability related expenditure to be considered, should they feel their client contribution does not leave them with sufficient expendable income to cover the cost of living with a disability (see here for more information).

Who would be affected by the proposal and how

There are currently 2748 service users receiving non-residential care packages, representing 85% of our total current service users, and an average of 90 new home care (domiciliary care) users every month. They would all be impacted by a rise in the cost of their social care services. It’s important to note that the increase will be proportionate to the amount they currently pay and that LBH will ensure that all service users retain the ‘Minimum Income Guarantee’ as legally required by the Care Act 2014, which ensures that our service users have money set aside to cover their everyday expenses.

Examples of Potential Impact:

• A (currently not contributing towards the cost of her care): 
  • A is 63 and gets help at home due to arthritis. Currently, she pays nothing, as we only take into account three-quarters (75%) of her assessable income from DLA and ESA.
  • With proposed changes 2 and 3, she might pay £5.76 per week.
  • If proposed change 4 also happens, she might pay £11.19 per week.
• B (pays average amount): 
  • B is 50, has moderate learning disabilities, is autistic, and lives in 24 hour supported accommodation. He currently pays £74.60 per week.
  • With proposed changes 2 and 3, he might pay £81.31 per week.
  • If proposed change 4 also happens, he might pay £84.94 per week
• C (pays more towards the cost of her care): 
  • C is 85 and bed bound. She needs significant care at home. She currently pays £342.44 per week
  • With proposed changes 1, 2 and 3 (removing the cap and increasing percentages), she might pay £429.44 per week.
  • If proposed change 4 also happens, she might pay £434.87 per week.

People receiving local authority arranged care and support at home or in the community need to retain a certain level of income to cover their living costs. Under the Care Act 2014, charges must not reduce people’s income below a certain amount, known as the Minimum Income Guarantee (MIG), but local authorities can allow people to keep more of their income if they wish.

The DHSC set the rates for national care charging policies (e.g. the capital limits, personal expenses allowance etc.) on an annual basis in the “Social care- charging for care and support: local authority circular”. The 2024-2025 rates are outlined in the table below, next to our current, much more simplified model of applying the MIG. 

Benchmarking has shown that most other local authorities (18 out of 24) apply the MIG in line with the full DHSC MIG rates without any discretionary enhancements or local policies otherwise. 

What Might Change:

They might start using the official DHSC rules to figure out the minimum amount of money you keep. These rules are more detailed and look at your age (18-24, 25 to retirement age, and retirement age and older) and what benefits you get.
Most other councils already use the official DHSC rules.
Examples of What Could Happen (Along with Other Changes):

• A (63): 
  • Currently gets to keep more money because of Hackney's rule for people over 60.
  • If this proposed change and other proposed changes (non-residential care charge changes: numbers 2 and 3) happen, she might have to pay £51.21 per week.
  • If another proposed change (non-residential care charge change, number 4, about disability benefits) also happens, she might have to pay £56.64 per week.
• B (50): 
  • Currently gets to keep more money because of Hackney's rule.
  • If this proposed change and other proposed changes (non-residential care charge changes: numbers 2 and 3) happen, he might have to pay £105.16 per week (41% more).
  • If another proposed change (number 4) also happens, he might have to pay £108.79 per week (46% more).
• C (85): 
  • Won't be affected by this rule change because she is over 65. Any increase would be due to the other changes.
• D (20): 
  • Currently gets to keep more money because Hackney uses a rule for people aged 25-65.
  • If only this proposed change to the DHSC rule happens, she might have to pay £77.29 per week (59% more). (This doesn't include the other changes).

A self-funder is an individual who is not entitled to receive contributions towards the cost of care from their local council because they have savings worth more than the £23,250 Upper Capital Limit (UCL) and/or they own their own property (property only applies for residential care where there is no partner living in the property).

Self-funders are able to approach local authorities to request an assessment under the Care Act and for support to set up a care package. The Council has the same legal duties towards self-funders as it does residents eligible for support to pay for the cost of care, however, self-funders are financially assessed as required to pay the full cost of their care or the maximum charge set by a local authority. LBH is an outlier because we currently have a cap on the full cost of care for non-res packages at £250 per week - maximum caps are now very uncommon amongst local authorities. 

In Hackney, we have approximately 139 self-funders, representing a very small proportion of our service users (around 4%). Because self-funders hold capital above the UCL, they can afford to pay for the full cost of their care, and therefore, many local authorities will charge any self-funder who asks them to arrange a package of care on their behalf to cover the cost for brokerage to do this work on their behalf. In Hackney, we do not charge self-funders for the brokerage service when they request this, but in light of council budget deficits, we are proposing a flat rate charge, as per common practice at other local authorities and within our rights as per Care Act 2014 guidance section 8.12. 

Many local authorities charge a fee for arranging care for self-funders. This fee can cover the cost of negotiating and/or managing the contract with a provider and cover any administration costs incurred. The average initial arrangement fee for self-funders amongst 21 other local authorities benchmarked was £266.50 with charges ranging from £45-650. 

The time taken to set up a package of care can vary greatly depending on the complexity of the package being set up, and therefore it is much more common for local authorities to apply a flat rate charge to all self funders as an arrangement fee for brokers setting up new packages of care after a Care Act Assessment or Review. To ensure we are Care Act compliant and do not charge anyone more than the actual cost of brokering the care package, we are proposing that the flat rate charge would be based on the minimum amount of time a broker would need to source a package (5 hours). This would mean a flat rate charge of £162.65, which is in line with other local authority flat rate charges.

The Hackney Technology-Enabled Living (TEL) Service is undergoing significant changes to ensure its sustainability and enhance its reliability for vulnerable residents. Formerly known as the Hackney Integrated Telecare Service, TEL provides a range of technology-enabled solutions, including connection to a 24-hour alarm monitoring centre and community response team to help keep residents safe at home.

Why the Service is Changing: The current free model is unsustainable due to rising costs and the mandatory nationwide transition from analogue to digital phone services by 31 January 2027. This digital switch-off necessitates equipment upgrades, increasing costs and risking payment for obsolete services. The new TEL contract, effective 26 August 2025, allows for investment in better digital technology and focuses council-funded services on those most in need, managing limited funds while improving service reliability. Hackney Council began installing digital devices in April 2022.

Alternative Options Explored: As part of the Redesign Project, Hackney Council rigorously explored various alternatives to make the TEL service more affordable, but none were found to be practical, affordable, or in the best interest of residents. These included:

• Providing the service internally: Ruled out due to lack of resources, expertise, high costs, and potential delays in delivery.
• Partnering with health services: Rejected due to financial risks, staffing challenges, and sustainability concerns for a 24/7 service.
• Stopping the community response service: Deemed unacceptable as it would leave 72% of vulnerable users without emergency support, leading to poorer outcomes and increased pressure on emergency services.
• Charging all TEL users: Considered unfeasible as it could discourage eligible residents, potentially leading to increased demand for more costly alternatives like home or residential care and would not generate sufficient income from Care Act-eligible individuals.
• Maintaining the status quo: Not an option due to unmanageably high costs.

New Service and Eligibility Rules (Effective 26 August 2025):

• Council-Funded Eligibility:
  • Children with disabilities.
  • Adults (18+) assessed as requiring care and support under the Care Act 2014.
  • A temporary six-week council-funded TEL service will be available for individuals leaving hospital who need support to recover safely at home but are not Care Act-eligible.
• For Others:
  • Residents not meeting the Care Act criteria may continue to use the TEL service as self-funders for a small fee.
  • A one-off administrative fee may be charged for equipment replacement due to loss, damage, or carelessness.
  • A one-off fee may be payable for key safe provision and installation for those using the TEL community response service.

Benefits of the Changes: Moving to digital technology improves the quality and reliability of the service and introduces a new assisted lifting service.  This primarily refers to initiatives aimed at responding to falls in people's homes and assisting them back to their feet without necessarily requiring an ambulance or hospital admission.  While this upgrade is more expensive, it ensures better access to support. Hackney has been one of the few councils to fund TEL services for non-Care Act eligible residents, unlike most neighbouring boroughs which already charge for these services.

The aim of the Blue Badge scheme is to assist people with severe mobility problems as a result of a visible disability to access goods and services, by allowing them to park nearby their destination. The scheme is open to eligible people regardless of whether they are a driver or passenger of a vehicle. 

Hackney has 7,287 Blue Badges currently still valid and in circulation. Currently, there is no administrative fee charged for a Blue Badge in Hackney, however, due to demand and to enable applications to be processed in a reasonable time (10 working days), it requires two customer service officers processing applications five days a week. In the last three years, LBH have received around 4,300 applications for Blue Badges per annum, which includes new badges, as well as the renewal and replacement of lost and stolen ones. Renewal applications account for over 50% of all applications received. Residents are reassessed every three years to check eligibility and to ensure they still reside in Hackney.  

The proposal is that a £10 administration charge be levied for every Blue Badge which is issued by the Council. This is standard practice in the whole of the UK, with the exception of Wales, who do not charge a fee. Blue Badges are valid for a period of three years before a need to renew and, therefore, the actual cost to the resident is £3.33 a year. This proposal will bring Hackney in line with the majority of local authorities, who already charge this fee and have done so for a number of years. 

The fee would only be charged when a resident meets the criteria to be eligible for a Blue Badge. Applications which are rejected as the resident does not meet the criteria will not be charged. 

The £10 fee is standard practice across many boroughs in England and aligns with central government guidelines, which enables local authorities to charge a maximum of £10 for the service. This would include the charge for the replacement of all lost and stolen badges, which at present incur no fees. 

The fee would be collected at the start of the application process and refunded where a resident, after being assessed, does not meet the criteria.  

This proposal to introduce a £10 fee for badges in Hackney would help to create a more sustainable funding model, ensuring the blue badge scheme remains effective and accessible to those Hackney residents who meet the criteria to qualify for a travel concession. 

Introducing a fee may also reduce, or at least discourage, fraudulent applications and misuse of Blue Badges, helping to ensure only those who are eligible have access to the scheme.

Q: What are the main changes being proposed that could affect me?

A: The main changes being proposed are:

• Removing or increasing the maximum charge cap for non-residential care (currently £250 per week).
• Charging based on 100% of the cost of service, instead of 92%.
• Taking into account 100% of assessable income, instead of 75%.
• Potentially reducing the amount of disability benefits disregarded in the financial assessment from 25% to 20%.
• Changing the Minimum Income Guarantee (MIG) calculation to align with DHSC rates, which may lower the MIG for some individuals, especially those under 66.
• Introducing a flat rate arrangement fee of £162.65 for self-funders who ask the Council to set up a care package.
• Introducing a small contribution for the Technology-Enabled Living (TEL) service for residents not eligible under the Care Act 2014, where it was previously free.
• Introducing a £10 administration fee for Blue Badge applications, renewals, and replacements.

Q: If I currently have a care package, how will these changes affect my costs?

A: If you currently have a non-residential care package and pay a contribution, you may see an increase in your charges. This is due to the proposed changes in how the charges are calculated (100% of service cost, 100% of assessable income) and the potential removal of the charge cap. Your individual impact will depend on your financial assessment.

Q: What if I am a self-funder?

A: If you are a self-funder and ask the Council to arrange a care package for you, you will now be charged a flat rate arrangement fee of £162.50.

Q: How will the changes to the Minimum Income Guarantee (MIG) affect me?

A: If you are under 66, the proposed changes to the MIG calculation to align with DHSC rates may result in a lower MIG, meaning you may have less income left after paying for care. Those over 66 will have their MIG rates adjusted to align with the DHSC rates.

Q: What if I receive disability benefits?

A: The amount of disability benefits disregarded in your financial assessment may be reduced from 25% to 20%. This means more of your disability benefits could be taken into account when calculating your contribution to care costs.

Q: I have a Blue Badge. How will these changes affect me?

A: You will now be charged a £10 administration fee for any new Blue Badge applications, renewals, or replacements.

Q: How will the changes to the Technology-Enabled Living (TEL) service affect me?

A: If you currently receive the TEL service free of charge and are not eligible under the Care Act 2014, you will now be subject to a small contribution for this service. This change brings Hackney in line with most other neighbouring boroughs who already charge for similar services.

Q: How will I know exactly how these changes will affect me personally?

A: The Council will conduct a financial assessment (CA1 form) to determine your individual contribution to care costs. This assessment will take into account your specific circumstances, including your income, benefits, savings, and essential costs.

Q: What if I cannot afford the increased charges?

A: The Council will continue to subsidise or cover the cost of care for those who are financially assessed as unable to afford it. If you are concerned about your ability to pay, there will be additional support and advice once your new financial assessment has been completed. This will not occur until 2026, once we have considered feedback from the consultation. We will write to everyone with changes to their financial assessment and charge, if any. We will provide contact details for individuals concerned with a change in their care charge and will review individual circumstances, including aspects such as disability related expenditure and benefit maximisation.

Q: How can I provide feedback on these proposed changes?

A: You can provide feedback by responding to the consultation questions provided in the document. These questions ask for your agreement or disagreement with the proposals and provide space for you to explain your reasoning and any concerns.

Q: Where can I find more information and advice about my current care charges?

A: You can find more information and advice on charging for services provided by Adult Social Care by checking the links to the website provided in the document. You can also contact the Council's Care Charging Team about your current care charges on 020 8356 4738.