The capital means test limits for people going into care will shortly increase, with effect from 7 April 2003. The current lower capital means test limit is £11,750 and will be raised to £12,000. This means that anyone with capital of £12,000 or less will have his or her care fees in a home paid for by the Local Authority. The upper capital means test limit will increase from £19,000 to £19,500. People with capital of at least this amount will be expected to fund their own care. This is known as self-funding.
The weekly personal allowance has also increased from £16.80 to £17.50. This is the amount the person in care must be left with each week from their income. In addition to these increases the amount the NHS pays towards nursing care is also going up. There are three bands of weekly payments, depending on how much nursing care a person requires. The lower band will increase from £35 to £40. The middle band will increase from £70 to £75 and the higher band will increase from £110 to £120 per week.
Our tip
For the majority of people that own a home, this will take you above the £19,500 limit. Seeking independent advice regarding payment of care fees is vital. The rules are complex and each Local Authority has a different interpretation of the rules.
Learn more about care in older age in the Care Fees Adviser.com.
Need help or advice? Visit the Help Zone to find out all the different ways we can offer low cost help, advice or guidance.