The £23,250 care capital limit: how it works
By CareFinder Team · Published 2025-11-13 · Last reviewed 2026-09-18
£23,250 is the upper capital limit for council help with care costs in England and Northern Ireland in 2026 to 2027. Above it, you normally pay the full cost of your care. Between £14,250 and £23,250 you pay £1 a week for every £250 of capital, plus a contribution from income. Your home only counts in some situations, and Scotland and Wales use different limits.
In England, £23,250 is the upper capital limit for council-funded care. If your savings, investments and other capital (sometimes including your home) are worth more than this, you will normally pay the full cost of your care. Below it, the council contributes, and capital under the lower limit of £14,250 is ignored altogether. Northern Ireland uses the same limits; Scotland and Wales set their own.
The government confirmed in its 2026 to 2027 charging circular that both limits are unchanged. They have stayed the same for many years, so check GOV.UK each April for the current year. This guide is general information, not financial advice.
How does the capital limit work?
After a needs assessment shows your relative has eligible care needs, the council carries out a financial assessment (means test). It adds up their capital and applies three bands:
| Capital | What happens in England |
|---|---|
| Above the upper limit | They pay the full cost of their care |
| Between the lower and upper limits | They pay from income, plus "tariff income" from capital |
| Below the lower limit | Capital is ignored; they pay only from income |
The detail is in Annex B of the Care and support statutory guidance.
What is tariff income?
Between the two limits, the council assumes that every £250 of capital, or part of £250, can provide £1 a week towards care. The guidance gives this example: someone with capital of £18,100 has £3,850 above the lower limit. Dividing by £250 gives 15.4, which is always rounded up, so they are treated as having tariff income of £16 a week.
Tariff income is added to their actual income (such as pensions and most benefits) when working out their weekly contribution.
What counts as capital?
Capital usually includes:
- savings in bank and building society accounts
- cash, stocks, shares and premium bonds
- property other than the main home, such as a second home or buy-to-let
- the main home, in some situations (see below)
Some things must be ignored, including:
- personal possessions, unless bought to reduce capital to avoid care charges
- the surrender value of life insurance policies
- the value of life insurance within some investment bonds
- capital below the lower limit
Money held jointly is normally treated as split equally, unless there is evidence of unequal shares.
Does my home count towards the limit?
It depends on where care is provided and who lives in the home.
- Care at home: the value of the home you live in is ignored.
- Temporary care home stay: the home is ignored if you intend to return.
- Permanent move to a care home: the home is ignored for the first 12 weeks (the 12-week property disregard).
- Someone else still lives there: the home is ignored indefinitely if it is occupied by a partner or spouse, a relative aged 60 or over, a relative who is incapacitated, or a child of the resident under 18, provided they lived there before the move.
The NHS guide to the financial assessment summarises these rules. The council also has discretion to ignore the home in other cases, for example where a carer who gave up their own home still lives there.
What if my home is counted and I do not want to sell?
A deferred payment agreement lets the council pay the care home and recover the money later, usually when the home is sold, often after death. The council must offer one if you meet the criteria, including having savings and other assets (apart from the home) below the upper capital limit. Interest and an administration fee can be charged.
Other routes families consider include renting the property out, or a relative moving in who qualifies for the disregard. Each has consequences for tax and benefits, so take advice first.
Can I protect my home by giving it away or using a trust?
If someone deliberately reduces their assets to avoid care charges, the council can treat them as still owning them. This is called deprivation of assets. The council considers whether avoiding charges was a significant reason for the timing of the gift and whether a need for care was foreseeable at the time.
The statutory guidance lists transferring the title deeds of a property and putting assets into a trust that cannot be revoked as examples that may amount to deprivation. There is no fixed time limit in England, so the "seven-year rule" (which is an inheritance tax rule) does not protect a gift from a care assessment. Get advice from a solicitor who specialises in later-life planning before making any transfer.
What limits apply in Scotland, Wales and Northern Ireland?
- Northern Ireland uses the same upper and lower limits as England, and the Health and Social Care Trust carries out the assessment.
- Scotland sets higher capital limits each April. Personal and nursing care payments are made to everyone assessed as needing them, whatever their savings.
- Wales has a single capital limit for care home residents of £50,000, and no tariff-income band below it.
How much income will be left?
If the council is funding a care home place, the resident pays most of their income towards the fees but keeps a personal expenses allowance for personal items. In England this rose to £31.80 a week from April 2026. Wales sets its own, higher, minimum amount.
Frequently asked questions
Is the capital limit per person or per couple?
Per person. Each person is assessed on their own capital, and jointly held money is normally split equally between the owners. A partner's own savings are not added to the resident's.
Will I get help as soon as my savings drop below the upper limit?
The council should start contributing once your capital falls to the upper limit, if you have eligible needs. Contact the council a few months before you expect to reach it, because assessments take time.
Does the same limit apply to care at home?
Yes, the same limits apply, but your home is not counted when you receive care at home. Councils have some flexibility on charging for home care, so check your council's charging policy.
Is a lump sum from a pension counted?
Money withdrawn from a pension and held as savings will usually count as capital. Pension income counts as income. Take advice before drawing large sums.
Can I choose not to have a financial assessment?
Yes. You can choose to pay for your care privately, but you may miss out on help and on the council's advice about funding options.
Key takeaways
- The upper capital limit is £23,250 in England and Northern Ireland, and the lower limit is £14,250.
- Between the two limits, tariff income applies.
- Your home is ignored for care at home, for 12 weeks after a permanent move, and while certain relatives live there.
- Giving assets away to avoid fees can be treated as deprivation, with no fixed time limit.
- Scotland and Wales use different limits; check the rules for the nation where care is arranged.