Deprivation of capital

Overview What counts as capital? What counts as deprivation? How does the council decide? Are there any time limits on deprivation of capital? Can someone receiving the capital be held liable for the fees? Challenging council decisions Seeking independent advice Further information

What counts as deprivation?

The Charging for Residential Accommodation Guidance for local authorities, also known as CRAG, gives examples of deprivation:

• a lump-sum payment has been made to someone else – for example, as a gift or to repay a debt
• substantial expenditure has been incurred – for example, on an expensive holiday
• the title deeds of a property have been transferred to someone else
• money has been put into a trust which can’t be revoked
• money has been converted into another form which would fall to be disregarded – for example, personal possessions
• capital has been reduced by living extravagantly – for example, gambling or following a much higher standard of living than the resident could normally afford
• capital has been used to purchase an investment bond with life insurance