Personal expenses allowance and savings disregard

Personal expenses allowance and savings disregard

If you live in a care home, there are 2 ways that more of your money can be protected from being taken into account for paying care home fees.

Personal expenses allowance

This is an amount disregarded from your income. It’s meant to allow you to keep money to spend as you want on items like stationery, toiletries, small presents for friends and relatives, and other minor items.

You shouldn’t be asked to contribute towards the cost of your care from your personal expenses allowance.

The personal expenses allowance increased to £34.50 per week, with effect from 8 April 2024.

Local councils have the discretion to increase the personal expenses allowance in certain circumstances, like letting you meet continued home commitments.

Increases for home commitments are only considered for temporary residents or for those whose property has been disregarded. Examples include:

• insurance premiums
• fuel payments
• pet care

Applications should be made to your local council’s social care department.

Find out more about property disregard

Savings disregard

From 8 April 2024 the savings disregard for eligible care home residents is:

• £8.15 per week for single residents
• £12.10 for couples in addition to the personal expenses allowance

This amount is disregarded when calculating your contribution to care home fees. It applies to people over 65 who get pension credit and publicly-funded residents with a weekly income above the savings credit threshold.

Find out more about pension credit from GOV.UK.

Find out more about capital limits for care home fees.

Further information

The payment of care home fees is a complex subject and depends on many things which are unique to you.

If you want detailed information or personal advice, ask an experienced independent adviser like:

Advice Direct Scotland – phone 0808 800 9060, 9am to 5pm Monday to Friday.

Age Scotland – its fact sheets have information on paying for care homes, or phone their helpline on 0800 12 44 222.