Under the National Assistance Act 1948, where a local authority arranges residential care for a person it is required to carry out a financial assessment and charge the person such sums as they are assessed as being able to pay. The financial assessment is made using the National Assistance (Assessment of Resources) Regulations 1992. The regulations are updated annually. The latest amendment to the 1992 regulations is S.I. 2011/724.
The Charging for Residential Accommodation Guide (CRAG) provides guidance to local authorities on how to interpret and apply the regulations.
LAC(DH)(2011)1: Charging for Residential Accommodation