The Capital Limit for this financial year is £23,250. If the claimant (i.e. the person who needs care) has capital in excess of £23,250 then they will have to fund the cost of their domiciliary care in full. If someone has between £14,250 and £23,250 the local authority will make a contribution towards the cost of domiciliary care until capital is reduced below £14,250.
“Capital” means all assets including bank and building society accounts, ISAs, National Savings, shares and the family home. However, not all capital is taken into account. Assets which are not taken into account include:
• Property if a dependant over the age of 60 lives in the property. For example, if you go into a home and your spouse remains in the house and he/she is over 60 years old, the capital held in your name would not include the value of the home.
• The surrender value of life insurance policies including investment bonds.
Income is also taken into account in funding the care fees so payments such as State Pension and other benefits together with private pension income and income from savings will be taken into account in determining any financial contribution you may be entitled to from the Local Authority.
It remains the case that unless a claimant has less than £14,250 capital or is so seriously ill that their care is primarily nursing care provided by the NHS then they will continue to pay a substantial amount towards the costs of care.