In addition, property that yields income, such as rented accommodation, is also excluded as only actual income is considered.

The 5.5 per cent of the value of property is considered as revenue and therefore 60 per cent of it is added to the amount which people in residences for the elderly pay.

The above is subject to the fact that elderly people must be left with Lm600 disposable income.

The secretariat said that the principle is not a new one and is applied in the calculation of old age pensions and unemployment benefits.

The secretariat also clarified that the 80 per cent rate is only paid by residents who receive level 2 care.