Top-up payments
What is a ‘Top-Up’?
This is a way in which choice is given to an individual to pick an alternative care home to the ones being offered by the council, even if the one the individual prefers is more expensive.
A top-up payment is the difference between the cost to the council of your care in a care home it considers will meet your needs (called your personal budget) and a more expensive alternative.
If you are assessed to need residential care and choose a care home that is more expensive than your personal budget, a top-up payment is required to cover the difference.
There are two types of pop-ups: first party and third party.
First party top-ups
The individual who is in receipt of residential care can choose to pay extra to live in a care home that costs more than their allocated personal budget from the council. This payment covers the difference between your personal budget and the care home's cost and must be paid by the individual.
A first party top-ip can allow individuals to choose a care home of preference.
Essex residents can make a first party top-up if they:
- are subject to a 12 week property disregard, which means the council has agreed to disregard the value of their property for the first 12 weeks of their stay in the residential home
- have a deferred payment agreement in place with the council
- are being supported under section 117 of the Mental Health Act 1983
Third party top-ups
A third party top-up is when your relative, friend or any other person such as a charitable organisation enters into an agreement to pay the difference between your personal budget and the care home cost.
The top-up must be affordable and reasonable and cannot be paid from the resident’s capital or income.
The third party will need to provide evidence to the council to show that they can afford to pay the top up fees for as long as they are needed.
All top-ups
Whether you or a third party wishes to enter a top-up arrangement, you will be required to enter a legally binding contract with the council to set out the terms of the arrangement.
Top-ups are likely to be agreed where the council can be assured that:
- the person paying the top up has sufficiently secure financial resources to make the payments
- the top-up arrangement is sustainable for the likely period of its life
People’s finances can change over time and the person making the top-up payment could see an unexpected change in their financial circumstances. This could mean that they’re unable to continue to make the top-up payments.
The council may seek to recover any outstanding debt and may consider alternative ways to meet the person’s needs for care and support. This may result in a move to an alternative residential care home where fees can be met with the allocated personal budget. The person’s wellbeing would be central to any changes in care and support would be subject to a social care assessment.
Summary of what will happen
If this is something you would like to consider, the council can explore options available to you or a third party. The council will need to establish if this is financially sustainable. We would do this by looking at the relevant finances, including income and expenditure.
If it is established that the top up is affordable, sustainable and the relevant placement meets the adults needs (as agreed by the case worker) the application forms will be sent to you for completion.
The Finance Teams will keep you advised as to how, when and what amount is to be paid.
Please note, if you’re considering seeking assistance under the Deferred Payment Scheme, Essex County Council recommends that Independent Legal & Financial Advice is sought.