Local council support with care home fees isn't available if you have capital above the upper limit.
What's meant by capital
- 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
- 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
From April 2016, the capital limits are:
- lower limit: £16,250
- upper limit: £26,250
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.
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 £16,250.
Total capital of £22,250 equates to a weekly tariff income figure of £24.00 per week. This is worked out because you have £6,000 over the lower limit (of £16,250) which, in this case, you divide by £250 to give 24. This is multiplied by £1 to give £24.
This is added to any other income and compared to the applicable amount, affecting your benefit by £24 per week.
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:
Silver Line Scotland - phone 0800 4 70 80 90, 24 hours a day, every day of the year
Citizens Advice Scotland - phone 0808 800 9060, 9am to 8pm Monday to Friday, or 10am to 2pm on a Saturday
Age Scotland - its fact sheets have information on paying for care homes
The information was last updated on: 5th October 2016