Capital Limits 2025/2026
If someone has over the upper capital limit, they may not be entitled to support with the cost of their care from the council.
If someone has capital above the lower capital limit, but below the upper capital limit, they will be assessed including a tariff income.
If someone has capital under the lower capital limit, their contribution to established by income only.
The upper capital limit for 2025/2026 is £23,250.
The lower capital limit for 2025/2026 is £14,250
Defining capital
Taken from the Care and Support Statutory Guidance, Annex B: Treatment of Capital.
What is capital?
5) Capital can mean many different things and the intention is not to give a definitive definition here as a local authority will need to consult the regulations and consider the individual asset on its merits. In general it refers to financial resources available for use and tends to be from sources that are considered more durable than money in the sense that they can generate a return.
6) The following list gives examples of capital. This list is intended as a guide and is not exhaustive:
1. (a) buildings
2. (b) land
3. (c) National Savings Certificates and Ulster Savings Certificates
4. (d) Premium Bonds
5. (e) stocks and shares
6. (f) capital held by the Court of Protection or a Deputy appointed by that Court
7. (g) any savings held in:
1. (i) building society accounts
2. (ii) bank current accounts, deposit accounts or special investment accounts. This includes savings held in the National Savings Bank, Girobank and Trustee Savings Bank.
3. (iii) SAYE schemes
4. (iv) unit trusts
5. (v) co-operatives share accounts.
6. (vi) cash
8. h) trust funds
Full information can be found here:
Tariff Income
Where a person has assets between the lower and upper capital limits the local authority must apply tariff income. This assumes that for every £250 of capital, or part thereof, a person is able to afford to contribute £1 per week towards the cost of their eligible care needs.
Example:
Ivy has capital of £18,100. This is £3,850 above the lower capital limit of £14,250. Dividing the £3,850 by £250 produces a figure of £15.40. When calculating tariff income, the amount is always rounded up. This therefore gives a tariff income of £16 per week
Treatment of Income
Taken from the Care and Support Statutory Guidance, Annex B: Treatment of Income.
5) Only the income of the cared-for person can be taken into account in the financial assessment of what they can afford to pay for their care and support. Where this person receives income as one of a couple, the starting presumption is that the cared-for person has an equal share of the income
8) In all cases, irrespective of setting, employed and self-employed earnings are fully disregarded. [Regulation 13]
Benefits
14) Local authorities may take most of the benefits people receive into account. Those they must disregard are listed below. However, they need to ensure that in addition to the minimum guaranteed income or personal expenses allowance – details of which are set out below – people retain enough of their benefits to pay for things to meet those needs not being met by the local authority.
15) Any income from the following sources must be fully disregarded:
1. (a) Direct Payments
2. (b) Guaranteed Income Payments made to veterans under the Armed Forces Compensation Scheme
3. (c) War Pension Scheme payments made to veterans with the exception of Constant Attendance Allowance payments
4. (d) the mobility component of Disability Living Allowance
5. (e) the mobility component of Personal Independence Payments
16) Any income from the following benefits must be taken into account when considering what a person can afford to pay from their income towards the cost of their care and support in a care home:
1. (a) Attendance Allowance, including Constant Attendance Allowance and Exceptionally Severe Disablement Allowance
2. (b) Bereavement Allowance
3. (c) Carers Allowance
4. (d) Disability Living Allowance (Care component)
5. (e) Employment and Support Allowance or the benefits this replaces such as Severe Disablement Allowance and Incapacity Benefit
6. (f) Income Support
7. (g) Industrial Injuries Disablement Benefit or equivalent benefits
8. (h) Jobseeker’s Allowance
9. (i) Maternity Allowance
10. (j) Pension Credit
11. (k) Personal Independence Payment (Daily Living component)
12. (l) State Pension
13. (m) Universal Credit
17) Working Tax Credits must be taken into account when considering what a person can afford to pay from their income towards the cost of their care in a care home. However, they should be disregarded in the calculation of income for care and support arranged other than in a care home.
Other income that must be fully disregarded
29) Any income from the following sources must be fully disregarded:
1. (a) Armed Forces Independence Payments and Mobility Supplement
2. (b) Child Support Maintenance Payments and Child Benefit, except where the accommodation is arranged under the Care Act in which the adult and child both live
3. (c) Child Tax Credit
4. (d) Council Tax Reduction Schemes where this involves a payment to the person
5. (e) Disability Living Allowance (Mobility Component) and Mobility Supplement
6. (f) Christmas bonus
7. (g) dependency increases paid with certain benefits
8. (h) Discretionary Trust
9. (i) Gallantry Awards
10. (j) Guardian’s Allowance
11. (k) Guaranteed Income Payments made to Veterans under the Armed Forces Compensation Scheme
12. (l) Payments made to Veterans under the War Pension Scheme with the exception of Constant Attendance Allowance
13. (m) Income frozen abroad
14. (n) income in kind
15. (o) pensioners Christmas payments
16. (p) Personal Independence Payment (Mobility Component) and Mobility Supplement
17. (q) personal injury trust, including those administered by a Court
18. (r) resettlement benefit
19. (s) savings credit disregard
20. (t) Social Fund payments (including winter fuel payments)
21. (u) war widows and widowers special payments
22. (v) any payments received as a holder of the Victoria Cross, George Cross or equivalent
23. (w) any grants or loans paid for the purposes of education; and
24. (x) payments made in relation to training for employment.
25. (y) any payment from:
(i) Macfarlane Trust
(ii) Macfarlane (Special Payments) Trust
(iii) Macfarlane (Special Payment) (No 2) Trust
(iv) Caxton Foundation
(v) The Fund (payments to non-haemophiliacs infected with HIV)
(vi) Eileen Trust
(vii) MFET Limited
(viii) Independent Living Fund (2006)
(ix) Skipton Fund
(x) London Bombings Relief Charitable Fund
(xi) Scottish Infected Blood Support Scheme
(xii) an approved blood scheme (this is a scheme approved by the Secretary of State, or trust established with funds provided by the Secretary of State, to provide compensation in respect of a person having been infected from contaminated blood products)
(xiii) London Emergencies Trust
(xiv) We Love Manchester Emergency Fund
(xv) any payment made for the purpose of providing compensation or support in respect of the fire on 14 June 2017 at Grenfell Tower
(xvi) any payment made by the Post Office or the Secretary of State for the purpose of providing compensation or support which is in connection with the failings of the Horizon system, or otherwise payable following the judgment in Bates and Others v Post Office Ltd ((No. 3) “Common Issues”)
(xvii) any payment made under the Windrush Compensation Scheme (Expenditure) Act 2020
(xviii) any payment from a scheme established or approved by the Secretary of State for the purpose of providing compensation in respect of historic institutional child abuse in the UK
(xix) any payment made under the Vaccine Damage Payments Act 1979
(xx) any payment from the Victims of Overseas Terrorism Compensation Scheme established by the Ministry of Justice in 2012 under section 47 of the Crime and Security Act 2010
(xxi) Lesbian, Gay, Bisexual and Transgender Financial Recognition Scheme
Savings credit
30) For people receiving care and support other than in a care home, the savings credit the adult receives should be fully disregarded.
Full information can be found here:
