The question nobody asks in time
Your mother moves in. For a fortnight everyone talks about the room, the assessment, the contract. Nobody addresses the plainest practical question: what about her money? Where does her pension go, who signs, and how much is left for the hairdresser, a magazine, a birthday card for a great-grandchild.
Six months later the question arrives on its own, usually badly: a withdrawal nobody can explain, a cash tin with no receipts, one sibling who has handled everything and now cannot show the others what happened.
The allowance that must be left to her
Start with the entitlement, because it is frequently missed. If your mother's placement is funded by the local authority after a financial assessment, she does not hand over all of her income. A weekly personal expenses allowance must be left to her, and it is hers to spend as she chooses — on anything, including things you might think are frivolous. It is not the home's money, and it is not a contribution to her care.
Two things families get wrong here. First, the amount is set nationally and revised, and the four nations of the UK set it separately, so a figure someone quotes from a few years ago or from another nation will be wrong. Ask the local authority what the current figure is where she lives. Second, in some circumstances a local authority can allow more than the minimum — for instance where she has ongoing commitments — so if the standard amount genuinely does not cover what she needs, that is a conversation to have with the social worker rather than a fixed wall.
If she is funding her own place, none of this applies: her money remains hers in full, and the question becomes who is lawfully handling it.
Appointee or deputy — the distinction that catches people out
This is the single most useful thing in this article, because a great many families discover it at the worst moment.
If your mother can no longer manage her affairs and made a lasting power of attorney for property and financial affairs while she had capacity, and it is registered, the attorney can act. That is the clean route and by far the cheapest.
If she did not, families usually become a DWP appointee, because it is quick and free: it lets you receive and manage her benefits and state pension. What it does not let you do is anything else. An appointee cannot access her savings account, sell her house, deal with an occupational pension, or handle investments. For that you need a deputyship from the Court of Protection, which takes months and costs money — and which comes with an annual report to the Office of the Public Guardian, an outside check that is genuinely worth having in a family where relations are strained.
So the question to answer today is: which of these is actually in place, and does it cover what needs doing? Being an appointee and assuming it covers the building society account is the commonest expensive mistake in this area.
What the home may hold
Most homes keep a small amount of money for each resident — hairdresser, chiropodist, newspapers, a trip out. That is fine, and useful, provided it is handled the way you handle somebody else's money.
Three questions, all reasonable:
- How is it recorded? There should be a dated entry for every amount in and out, with receipts, not a notebook totted up at month end.
- How often do I get a statement? Ask for it to come to you regularly, in writing, without chasing.
- Who authorises spending? The hairdresser every fortnight is one thing; a £200 purchase decided by a staff member is another.
Handling residents' money is something the Care Quality Commission looks at, and a well-run home will have a clear policy and will not mind being asked. One practical rule solves most problems: no significant cash in her room, and no bank card. Not because staff are dishonest — the overwhelming majority are not — but because in a room ten people enter every day, cash creates accusations nobody can disprove, and the honest carers are the ones who suffer.
Warning signs
Repeated withdrawals nobody can explain. A signature from a period when she could not have understood what she was signing. A new and very attentive friend who takes her to the bank. A relative who handles everything and bristles when asked to show the accounts. A sudden change to her will.
Financial abuse is abuse, and it falls squarely within adult safeguarding: the local authority safeguarding team takes reports from anyone, including family, and you do not need permission or proof to raise a concern. Banks also have processes for suspected financial abuse of vulnerable customers. But before any of that, the effective first move is usually the dull one: ask for two years of bank statements and read them. Most of what is found is found there.
Six questions to ask
- Is her placement council-funded, and what is the current personal expenses allowance?
- Is there a registered LPA for property and financial affairs — and if not, is there an appointeeship, a deputyship, or nothing?
- Does what is in place actually cover her savings and any occupational pension?
- How does the home record her personal money, and how often will I get a statement?
- What can the home spend without asking me, and above what amount does it need authorisation?
- Where is her bank card, and who has the PIN? If the answer is uncomfortable, that is the answer.
If the accounts do not add up
Put it in writing to the manager, naming the period and asking for an itemised statement. If the answer does not come or does not convince, the routes are: the local authority, if it funds the placement or if this is a safeguarding concern; the Care Quality Commission, which will not resolve your individual case but does act on patterns in how a provider handles money; and the Office of the Public Guardian, if the person you are worried about is an attorney or deputy.
Where to start
If your mother is about to move in, sort this before you sign: which account her income goes to, who has lawful authority, what allowance she keeps, and how the home's records work. If she has been there for years and nobody has raised it, start by asking for the statements. It is an ordinary request and nobody reasonable will take offence.
If you would rather not do it alone, we can. For £69 we take down your mother's situation, look for the homes in your area that answer these questions properly, and report back what they told us, with names and dates. Start here
This article is for information and does not replace legal or financial advice on your own situation. The personal expenses allowance and the rules on funding are set separately in England, Scotland, Wales and Northern Ireland and are revised: check the current figure with the local authority. Curalune does not allocate beds and does not guarantee availability.
