Guides and Information

Additional Cost Contribution Factsheet

Additional Cost Contribution is a payment made to a residential or nursing home on your behalf, normally by a friend or relative.

Where we are contributing to the cost of your care we only pay up to a certain amount, but some care homes charge more than this.

If we are UNABLE to provide two options for a temporary or permanent care home placement at the rate we usually pay, then we will pay the additional cost of a suitable care home that will meet your needs.

If we are ABLE to provide two or more options for a temporary or permanent care home placement that will meet your needs AND all are above the rate we usually pay, then we will pay the rate that is closest to our standard rate. 

You can choose a more expensive care home if a friend, family member or a charity pays the difference.  This is called an ‘Additional Cost Contribution’ and it is normally paid to the Council, so that the Council can in turn pay the care home.

As the service user, you are only allowed to pay an Additional Cost Contribution in certain circumstances. The Additional Cost Contribution is determined by the difference between the fee the Council would usually expect to pay and the fee set by the care home. It is likely that the Additional Cost Contribution will be adjusted annually, although changes will be linked to inflationary factors.  There can be no guarantee given that any such increase will be shared evenly between the council and a third party.  Therefore anyone considering becoming responsible for Third party payments should consider this commitment very carefully.

Why can’t I make Additional Cost Contributions?

The guidance issued by the Government states that residents within care homes cannot make Additional Cost Contributions out of their own resources and local authorities do not have the power to collect any additional charges from the residents own resources to make Third Party payments.  However there are certain exceptions to the rule – see below.

When can I make Additional Cost Contributions?

If you have property to sell, you can enter into a deferred payment agreement with the local authority. In this case the Council will consider providing temporary funding which may be in excess of the Council price, because the Council will later recoup the funding by means of a charge on the property.

You should be aware that this is not standard practice and we do not automatically agree to allow an Additional Cost Contribution on a deferred payment. This is something you would need to request when applying for a deferred payment.

What is our responsibility in this arrangement?

We need to be sure the Third Party is able to pay the contributions for as long as may be needed. Because of this, we ask the Third Party to read this leaflet carefully, provide the financial information requested and sign the enclosed document, as a record that they have read and understood the information contained in this leaflet.

Particularly, you should note that the Council reserves the right to recover from the third party any outstanding contributions that become due.

If the care home stops providing satisfactory care or is otherwise in breach of the terms and conditions of our contract with them, we also reserve the right to move you to alternative accommodation. If your needs change significantly you will be re-assessed by a social worker to see whether your current accommodation continues to meet your needs.

What happens if the Third Party stops paying?

We will negotiate on your behalf with the Care Home to see whether they will accept the set local authority price for the accommodation.

If the Care Home is not prepared to re-negotiate the price then you may need to move to a less expensive room in the same home, or to an alternative home at the local authority price.  Before this happens, the social worker will carry out a full community care assessment, (including an assessment of your emotional and psychological needs) in order to ascertain the impact on you of the move.

If the community care assessment identifies exceptional circumstances the social worker will refer you for special consideration of additional funding. If however, the community care assessment identifies no exceptional circumstances then we will explore a number of options to find alternative accommodation at local authority prices.

ID: 10084, revised 12/05/2023