When a loved one moves into a care home, one of the first questions families face is: How much will this cost — and who pays for it?
In Northern Ireland, the rules are set out in the Charging for Residential Accommodation Guide (CRAG). This official guidance document is used by Health & Social Care (HSC) Trusts to determine how much a resident should contribute toward their care.
Being informed about CRAG empowers families to navigate care home charges with confidence — and helps ensure that your loved one isn’t overcharged.
Below we break down how the system works in Northern Ireland and highlight ten key points every family should know.
1. What CRAG Actually Is
CRAG explains how HSC Trusts determine a person’s contribution when entering residential or nursing care. It covers both trust-run homes and independent homes under contract with the Trust.
The system is designed to promote fairness: those who can afford to pay do so, while those who cannot are supported through public funding. This is where the conflict can occur. The Guidelines are dated 2015 and the care environment have changed substantially since then.
Family takeaway: Always confirm whether your loved one’s placement is arranged via the Trust or privately. That will determine which CRAG rules apply.
2. How Financial Assessments Work
Before determining the weekly contribution, the Trust carries out a financial assessment. This assesses income, savings, property and other assets.
They’ll apply disregards (for example the person’s personal allowance) and may treat some capital as “tariff income” if it falls between thresholds. If the Trust believes assets have been given away to avoid care fees, they may apply “notional capital”. Our Advice – DO NOT PROVIDE THE SPOUSE’s INFORMATION ON THE FINANCIAL ASSESSMENT. The Trust has no right to this information.
Family takeaway: Ask for a full written breakdown of the assessment so you can see what has been included, disregarded or assumed.
3. The Capital Limits
Understanding the key thresholds is crucial:
Above £23,250: the person will usually pay the full cost of care.
Between £14,250 and £23,250: tariff income will apply (i.e. a notional weekly income derived from capital).
Below £14,250: the person’s savings are disregarded for the purpose of charging.
If money is held jointly (for example in a joint bank account), the Trust will seek to ascertain who the money actually belongs to. We have had disputes with the Trust about such joint assets in the past. Do not allow the Trust to pressure you or the Resident into agreeing a split that isn’t correct.
Family takeaway: Be aware that small changes in accounts or transfers can move capital across a threshold — so keep an eye on joint assets.
4. The Personal Expenses Allowance (PEA)
Every residential care home resident must be left with a “Personal Expenses Allowance” — money to spend on their own personal items, e.g., toiletries, clothes, small comforts. Importantly, it cannot be used to pay for the accommodation charge or any “top-up” fees if a more expensive home is chosen.
Family takeaway: Ensure that the assessment leaves the resident with at least the statutory allowance. If not, raise this with the Trust.
5. Temporary or Short-Term Stays
If the placement is temporary (e.g., respite or short-term recovery), different rules apply. For the first eight weeks, the Trust may charge a “reasonable amount” without a full assessment. After eight weeks, the full financial assessment rules apply.
Family takeaway: Clarify in writing at the outset whether the placement is being treated as temporary or permanent. That changes how charges are calculated and which benefits are counted.
6. Couples and Joint Finances
Each individual is assessed separately, even if married or in a civil partnership. The Trust may still examine joint assets (like joint bank accounts or property), but each person’s share must be considered.
Family takeaway: Make sure the Trust separates the spouse’s assets and income (the spouse remaining at home) from the resident’s assessment. Don’t assume all household assets are pooled automatically.
7. What Happens to the Family Home
A common concern is how the resident’s former home is treated. It may be disregarded (not counted) if certain conditions apply: for instance, the resident intends to return home, or certain relatives (spouse or adult disabled child) continue to occupy the property. Additionally, there’s often a 12-week disregard when someone first moves permanently into care, giving time to decide what to do with the home.
Family takeaway: Ask in writing how the Trust is treating the home, whether a disregard is applied, and for how long. Keep records if you’re selling or renting the home.
8. When Relatives Are Asked to Contribute
Under CRAG, Trusts are permitted in limited circumstances to recover costs from “liable relatives.” However, family members cannot generally be forced to pay care home fees unless a written agreement exists (e.g., a “top-up” payment for a more expensive home). This is the most contentious area. In 2015, there were only a small number of homes per Trust which charged the top-up fee. This has changed substantially in ten years. The reason: the total the Trusts are allowed to charge each Resident has only nominally increased, whereas the costs of care have dramatically increased. The current answer – Top-Up Charges. Payable by the family. Only a small minority of care homes do not require a top-up in each Trust.
Family takeaway: Never sign or agree to payments without understanding your rights and obligations. Any agreement should be clearly documented.
9. Transparency and Right to Challenge
Trusts must provide a clear explanation of how the resident’s weekly contribution was calculated, including income, capital, disregards and tariff. If you believe the assessment is incorrect or unfair, you have the right to complain or request a review via the Trust’s formal complaints process.
Family takeaway: Always ask for written confirmation of how the charge was worked out. Don’t be afraid to challenge or ask questions if it doesn’t make sense.
10. Less-Dependent Residents
Some people living in supported or sheltered accommodation may be classed as “less-dependent.” In such cases, Trusts may apply more flexible charging rules, enabling the resident to keep more of their income.
Family takeaway: If your loved one is still able to carry out many daily living tasks, check whether “less-dependent” status might apply. That may reduce their contribution.
11. Residents Needing Hospital Level Care
There are an extremely small number of care home Resident’s whose care needs would extend to hospital-level care. In these cases, the Resident should not be required to pay anything. NHS care provided at source, is free in the UK and therefore they cannot move a patient from a hospital to a care home if they have not improved in their condition. There is ongoing litigation around this and it may change in the future.
Family takeaway: If your loved one has been living long-term in hospital, then they are moved to a care home without a change in their condition, you should fight to have the costs fully covered, regardless of financial assessments.
The Ten Questions Every Family Should Ask
Can I see a full breakdown of how the contribution was calculated?
Has the Personal Expenses Allowance been applied correctly?
How has the family home been treated in the assessment?
Where does the resident’s capital sit in relation to the key thresholds?
Is the placement classed as temporary or permanent?
Has the Trust properly separated the spouse’s/partner’s finances?
Has any “notional capital” been assumed because of past gifts?
If we are paying a “top-up”, is it properly documented?
Could the “less-dependent” rules apply in our case?
Who do we contact if we want to challenge the assessment?
Final Thoughts
The CRAG rules may feel complex, but families who understand the key points are much better placed to protect their loved one’s finances. Keep everything in writing, ask for clear explanations in plain English, and don’t hesitate to raise questions or challenge decisions that don’t seem right.
If you need help understanding how CRAG applies in your situation or want to review a specific assessment, our team can guide you through the process and help ensure your relative’s rights are protected.