The Department of Health and Social Care have announced that the upper and lower capital limits, which Local Authorities use to decide how much to charge people for residential care, have been left unchanged for the ninth year in succession.
The rate remain at:
Higher rate – £23,250 over this level you are responsible for the full cost of your care in a care home
Lower rate – £14250 below this level you only pay what you can afford from your income
Between Higher and Lower A person with assets between the capital limits must pay what they are obliged to from their income, plus a means-tested contribution from their assets (calculated as £1 per week for every £250 of capital between the capital limits). Where a person owns their own home, this is generally taken into account when they are admitted to a care home as a long-term resident, unless the property is occupied by certain loved-ones or relatives.
These rates are now 12 per cent lower in real terms than in 2010-2011, forcing many more people to self-fund or pay the charges themselves.
Social care experts have warned that the government’s failure to increase financial thresholds could force older people into hardship by requiring them to fund their care
The weekly Personal Expenses Allowance (PEA) of £24.90 per week has also be frozen at the same level since 2015. This allowance is the only money an older person is allowed to pay for items, such as toiletries or reading materials.