Capital limits

Capital limits

If you've had a financial assessment with the local council as part of an assessment of your care needs, the social care department will look at how much capital you have.

Local council support with care home fees isn’t available if you have capital above the upper limit.

What’s meant by capital

Capital includes:

• property, there are some circumstances where property will be disregarded from the financial assessment
• money held in bank or building society accounts
• stocks and shares
• National Savings Certificates
• Premium Bonds
• cash
• trusts, the nature of the trust, as set out in the trust deed, will determine how it’s taken into account in the financial assessment
• land

Capital limits

From 10 April 2023 the capital limits are £20,250 for the lower limit and £32,750 for the upper limit.

If you’re assessed as having capital above the upper capital limit, you won’t get help from your local council with paying care home fees over and above any assessed entitlement to free personal and nursing care. This is called self-funded.

If you have capital below the lower limit, you’ll get help with care home fees. This is known as publicly-funded.

Tariff income

If you have capital between the upper and lower limit, you’ll be assessed as though you have an extra £1 a week income for every £250 or part of £250 between the lower and upper limit. This is called tariff income.

Tariff income applies at a rate of £1 for every £250 (or part of £250) on capital over the lower limit of £20,250.

For example:

Total capital of £24,000 equates to a weekly tariff income figure of £15 per week. This is worked out because you have £3,750 over the lower limit (of £20,250) which, in this case, you divide by £250 to give 15. This is multiplied by £1 to give £15.

This is added to any other income and compared to the applicable amount, affecting your benefit by £15 per week.

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.