CAPITAL FUNDING LIMITS
Adult Social Care in England:
adult social care costs
For the 2026–2027 financial year in England, the lower capital limit remains £14,250 and the upper capital limit remains £23,250.
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Upper Capital Limit: £23,250 — individuals with assets above this must fully fund their own care
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Lower Capital Limit: £14,250 — individuals with assets below this may receive full financial support, based on income
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Between Limits: individuals contribute £1 per week for £250 of capital between the two thresholds
These thresholds apply to care home placements and other care settings. Local authorities may set higher limits for non-residential care, but this is rare. The limits include savings, property (unless exempt), and other financial assets.
Key Points
If you have savings and assets above the upper capital limit (currently £23,250), you are responsible for paying the full cost of your care.
If your capital is below the upper capital limit, your local council may contribute to your care costs.
"Capital" Definition:
Capital includes money in bank accounts, investments, stocks, shares, premium bonds, and property (with some exceptions).
No Reimbursement:
You will not be reimbursed for care costs if your savings fall below the limit before you have contacted your council for a financial assessment.
Annual Review:
The capital limits are set by the government and are reviewed annually, so they can change.
What Happens When You Reach the Limit
Contact Your Council:
You should contact your local council to request a financial assessment to determine your eligibility for support.
Assessments:
The council will assess your savings and assets to determine how much you can afford to pay for your own care.
What to Do Next:
If your savings are below the limit, ask your council to reassess your finances to see how much they can contribute to your care costs.
Capital Limits in England
For the 2026–2027 financial year, the capital limits remain unchanged:
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Upper Capital Limit: £23,250. If your capital is above this amount, you are considered a "self-funder" and are responsible for the full cost of your care.
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Lower Capital Limit: £14,250. If your capital is below this amount, it's disregarded in the financial assessment, though you may still need to contribute from your income.
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Between limits: if your capital falls between the two thresholds, you may receive some local authority funding, contributing a "tariff income" of £1 per week for every £250 (or part of £250) of capital over the lower limit.
For people receiving care outside a care home, these are minimum statutory limits — local authorities may choose to set higher capital limits if they wish.
What counts as capital: your savings, investments, and property. Your primary residence may be disregarded in certain circumstances, such as if a partner or dependent relative continues to live there.
Deferred Payment Schemes: if you have capital tied up in your property but a lower income, you may be able to defer paying care home fees. The local council covers the fees, and you repay the debt later, usually when the property is sold.
NHS Continuing Healthcare: this funding is provided by the NHS for people with significant and complex health needs. It is not means-tested, so there is no capital limit for eligibility.
These figures are confirmed as unchanged for 2026–27 in the government's social care charging local authority circular, published under the Care and Support statutory guidance and the Care Act 2014.
CARE4U2DAY does not determine eligibility for local-authority funding. To find out what you may be entitled to, please contact your local council for a financial assessment.
All our reviews are out-sourced and Confirmed by Homecare.co.uk
Doreen B
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They were always efficient and unhurried but above all, every one of the team members was always cheerful, kind, and gentle. They made the last weeks of my husband's life as happy and comfortable as possible.
I will always be grateful to them and highly recommend them to anyone needing home care.
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Client's Husband
I give to you all my heartfelt thanks for all you did for my dear wife, Connie - she loved you all.
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The care given to my mother was always of an exceptional standard.
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