Social care charging reform

The Government have announced a wide-ranging reform of the way social care is paid for, which is due to come into effect in Autumn 2025.

The Social Care Charging Reform will introduce changes to:

the amount that anyone will have to pay for their personal care over their lifetime - limited to £86,000
the financial thresholds used to assess how people will need to contribute to the cost of their care
how people that fund their own care can ask for this to be arranged by the Council on their behalf

These changes are being introduced to make sure that people will no longer face unpredictable or unlimited care costs and can access the best value for their care.

The changes have not taken place yet and you do not need to take any action now.

The Government has put together some frequently asked questions to explain the upcoming changes and what this could mean for you.

There are 2 main changes that affect you or someone you support.

Care thresholds

At the point you start to receive care, we have to determine the amount of money you must contribute towards your care costs.

We calculate your income (private and state income) plus capital (investments, savings and properties) against a set of national criteria

As a general rule, if:

you currently have savings and assets that total more than £23,250, then you will be required to self-fund your care
your assets and savings total less than £14,250, then the amount you will be required to contribute towards your care, is based on the income you receive only - A financial assessment would be undertaken to determine the amount you can afford to contribute based upon any private income you received as well as state benefits and pensions
your assets and savings are between £14,250 and £23,250 you will be asked to contribute towards the cost of your care - This contribution will include Tariff Income which is based on the amount of your savings and assets

For every £250 of capital between £14,250 and £23,250, or part thereof, £1 per week is included in the contribution. (Example: £21,000 in savings, would be £27 per week Tariff Income)

New thresholds

From Autumn 2025, the government are proposing to introduce new thresholds.

The upper capital limit (at which you need to pay the maximum contribution towards the cost of your care) is rising from £23,250 to £100,000. If you have savings and assets above £100,000.00, you will be required to self-fund your care

The lower capital limit (at which the amount you will be required to contribute towards your care, is based on your income) is rising from £14,250 to £20,000. If your assets and savings total less than £20,000, then the amount you will be required to contribute towards your Care is based on the income you receive only. A financial assessment would be undertaken to determine the amount you can afford to contribute based upon any private income you received as well as state benefits and pensions.

If your assets and savings are between £20,000.00 and £100,000.00 you will be asked to contribute towards the cost of your care. This contribution will include Tariff Income which is based on the amount of your savings and assets. For every £250 of capital, or part thereof, £1 per week is included in the contribution. (Example: £21,000 in savings, would be £4.00 per week Tariff Income)

Charging cap

The Government are introducing a charging cap of £86,000 from Autumn 2025. This cap is the maximum amount that you will be asked to contribute over your lifetime, for eligible care you receive from Adult Social Care or paid directly to a care provider.

Therefore, if you are asked to contribute towards the cost of your care then once you have paid a cumulative total of £86,000 for your care, you will be required to make no further contribution towards your care costs. Please note, for those in a care home setting, a contribution will still be required towards daily living costs such as food, utilities etc.

We will therefore create a ‘social care account’ for you. The ‘account’ will keep track of the contributions you make, adding and totalling each type of care across the years. You will be able to see your own ‘account’ to understand your total and we will tell you as your contributions reach £86,000 (in total). If you are in a care home, then the amount that will be added to your charging cap does not include your daily living costs – it is just the total for the actual care you receive that you contribute towards.

Once you have contributed the maximum amount of £86,000 we will make arrangements for your care to continue, with you contributing towards the care. For people in residential care, you will be charged for daily living costs only.

The ‘Social Care account’ will start in Autumn 2025 and at that point, your total - or ‘balance’, will start at zero. If you have made contributions towards the cost of your Care before Autumn 2025, these will not be included in your starting total.

People who pay fully for their care

If the total of your savings and assets is over £23,250 (and post these reforms over £100,000), then you are required to pay the maximum contribution towards the cost of your social care. Many people in this situation choose to arrange their care privately.

Summary

The reforms will have a profound effect on how you pay for social care and as we get closer to Autumn 2025, we will be able to tell you exactly what will change and how we will help you through the reforms.

The government may change some of these reforms or the dates they will come into force. Please keep checking this page or the government website to keep up to date with the latest information about the reforms.

Last updated 13 November 2023