Capital limits

Capital limits

If you've had a financial assessment with the council, the social care department will look at how much capital you have.

Capital means how much money you have. This could include:

• money you have in the bank
• money you have invested in things like your house if you own it, or other property
• other investments, like shares in companies

Capital limits

From 8 April 2024, the capital limits are:

• £21,500 for the lower limit
• £35,000 for the upper limit

If your capital is below the lower limit, the council will pay a standard rate towards your care home fees. Your contribution towards your care home fees will be assessed based on your financial circumstances.

If you have capital above the upper limit, you must pay your care home fees. This will not affect any free personal or nursing care you’re entitled to.

Tariff income

Sometimes people have capital between the upper and lower limit. In these cases, you will make a contribution from your capital towards the amount you pay for your care home fees. This is called tariff income.

Your weekly tariff is worked out from the capital you own.

Tariff income applies at a rate of £1 for every £250 (or part of £250) of capital you have between £21,500 and £35,000.

For example: if you have capital of £24,000, you will pay a tariff of £10 per week.

This is worked out because:

• you have £2,500 over the lower limit of £21,500.
• £2,500 divided by £250 is £10

You will also be asked to contribute from your other sources of income such as your pension and benefits.

Further information

How you pay your care home fees depends on your own circumstances. If you want personal advice, ask an independent adviser like:

• Advice Direct Scotland – phone 0808 800 9060, 9am to 5pm Monday to Friday.
• Age Scotland – their fact sheets have information on paying for care homes, or phone their helpline on 0800 12 44 222.