HUNDREDS of old people will no longer have to pay for their home care.

But while it's good news for them, it's bad news for Bury's over-stretched social services budget.

New charging rules, which start on April 1, will cost the council £340,000 a year, and possibly more.

Some 1,231 Bury people receive home care from the council, and most pay a charge depending on their means. But the Government says Bury must now assess their outgoings as well as income in deciding how much to charge.

The council currently receives £800,000 a year from charges: £678,000 from home care, and £122,000 in transport fares to day care centres. The changes will cut this income by £340,000 a year, and more, if the Government says Bury can no longer charge a flat-rate for transport.

Councillors at the executive decided against abolishing all charges on financial grounds. The hourly home care rate will increase by £1 to £7.60, and meals by the rate of inflation. Residents will be allowed a £15 weekly allowance for expenditure related to their disability, and any charges of less than £6 a week will be waived.

The council is also forced to carry out financial assessments of all service users at their homes. This will cost £20,000 in agency staff to "blitz" current users by April 1, and £38,000 a year thereafter on advisors to do likewise.

Councillor Mike Connolly, executive member for social services, said that 200 users will be exempt and several hundred others will pay significantly less.