If you are trying to work out whether a council should help with care-home fees, the first figure you are likely to meet is the capital limit. It matters, but it is only one part of the financial assessment. Savings, investments, property, income, disregards and the type of care all affect the final calculation.
For the 2026–27 financial year in England, the Department of Health and Social Care says the upper capital limit remains £23,250 and the lower capital limit remains £14,250. Those figures apply to means-tested adult social care charging. They are not the same as benefit savings rules, and they should not be confused with NHS Continuing Healthcare, which is not means tested.
What the 2026–27 capital limits mean
If you are moving permanently into a care home and your assessable capital is above £23,250, you will normally be expected to pay the full cost of your care until your assessable capital falls below the upper limit. If your capital is between £14,250 and £23,250, the council can include a weekly “tariff income” amount when working out your contribution. The 2026–27 circular explains that this is calculated at £1 a week for every £250, or part of £250, between the two limits.
If your assessable capital is below £14,250, the council should not ask you to contribute from that capital. You may still have to contribute from income, depending on the financial assessment. That is why it is important to read the whole assessment rather than looking at the savings figure alone.
If the result seems inconsistent with your finances, use our step-by-step guide to checking a social care financial assessment that looks wrong.
What can count as capital?
Capital can include money held in bank and building-society accounts, savings, investments, some bonds, shares and certain property interests. The exact treatment depends on the Care Act charging rules and on whether a particular asset must be ignored. A council should not simply add every asset you own without checking whether a mandatory or discretionary disregard applies.
The Care and Support Statutory Guidance explains how local authorities should approach financial assessments, capital limits, income and disregards. If a council decision depends heavily on one asset, ask for the calculation in writing and ask which rule was used.
Does your home always count?
No. Property is one of the most misunderstood parts of care-home charging. The value of your former home may be ignored in some circumstances, including where a qualifying relative continues to occupy it as their main home. A 12-week property disregard can also apply in some circumstances when a person first enters permanent residential care.
The key question is not simply “Do you own a house?” but “Is the value of this property assessable under the Care Act rules in these circumstances?” Our companion guide to the 12-week property disregard explains the temporary protection, while our separate guide on when a home can be disregarded covers longer-term situations.
What happens if your capital is just above £23,250?
Being slightly above the upper limit does not mean you should stop planning. If you are paying for your own care, keep accurate records of fees and capital. As your assessable capital approaches the threshold, contact the council early rather than waiting until the balance has already dropped below it. The authority may need to carry out or update a needs assessment and financial assessment before funding can begin.
You can still ask the council to assess your needs even while you are paying privately. See our guide for people who are self-funding but still want a council needs assessment.
What is tariff income?
Tariff income is not the interest your savings actually earn. It is an assumed weekly contribution used in the means test when assessable capital falls between the lower and upper limits. In 2026–27, the government circular says councils should use £1 a week for each £250, or part of £250, in that band.
For example, if your assessable capital were £18,000, the council would look at the amount above £14,250 and apply the tariff-income formula. The council should show this calculation clearly. If the arithmetic does not match the published rule, ask for a written explanation or correction.
Income is assessed separately
Even when your capital is below the lower limit, income such as pensions and certain benefits can still be taken into account, subject to the charging rules and any disregards. For residents whose care is arranged by a local authority, the rules also require a minimum amount to be left for personal expenses. For 2026–27, the government says the Personal Expenses Allowance is £31.80 a week.
This allowance is not supposed to pay for services the council or NHS has already agreed to provide. It is intended for the resident’s personal spending. If you are being told to use it for something that appears to be part of the assessed care package, ask for the position in writing.
What if you receive care at home instead?
The same national minimum capital limits are relevant, but councils have more discretion for people receiving care outside a care home. The statutory guidance states that authorities can set higher capital limits for non-residential care, provided they do not set them below the national minimums.
People receiving care at home are also protected by the Minimum Income Guarantee rather than the care-home Personal Expenses Allowance. Our 2026–27 guide to the Minimum Income Guarantee explains the current rates and how they interact with charges.
Do gifts or transfers reduce the amount counted?
Not necessarily. Giving money or property away does not automatically remove it from a financial assessment. A council can consider whether there has been a deliberate deprivation of assets. The important questions include why the transfer was made, when it happened and whether avoiding care charges was a significant reason.
Do not assume that an old gift will automatically be treated as deprivation, and do not assume that a recent transfer will automatically be ignored. The circumstances matter. Our guide to deprivation of assets and social care explains what councils may examine.
What if you jointly own savings or property?
Joint ownership can make an assessment more complicated. A council should identify what portion of an asset belongs to the person being assessed and apply the relevant charging rules. For jointly held money, authorities often start from an equal share unless there is evidence showing a different beneficial ownership. Property valuation can be more complicated because the value of a person’s beneficial share may differ from a simple percentage of the whole property’s market value.
If a large care charge depends on a jointly owned asset, ask for the council’s valuation method and reasoning. Keep documents showing ownership, contributions and any legal agreement that affects the share.
What if you disagree with the assessment?
Start by asking for the full written calculation. Check the capital figure, income figure, tariff income, disregards and any property valuation. If something is missing, provide evidence and ask the financial-assessment team to review it.
If the dispute concerns disability-related costs for care at home, our guide to disability-related expenditure explains why relevant additional costs may need to be considered. If the issue cannot be resolved informally, use the council’s complaint process and keep copies of correspondence, calculations and supporting evidence.
When a deferred payment agreement may help
If your home is being taken into account and you are entering permanent residential care, you may not have to sell it immediately. A deferred payment agreement can allow eligible people to defer some care costs against the value of their property. Interest and fees can apply, and the amount deferred remains repayable.
Read our detailed guide to deferred payment agreements for care-home fees before making a decision.
A practical checklist
Before accepting a care-home contribution figure, make sure you have the written needs assessment or care plan, the financial-assessment calculation, recent statements for savings and investments, information about any property ownership, details of pensions and benefits, evidence for any disregards, and a note of the date your capital may cross the upper threshold.
If a family member is helping, keep records organised by date. Care funding often becomes difficult not because the rules are impossible to understand, but because people are asked to reconstruct months of transactions during a stressful move into care.
Bottom line
For 2026–27 in England, the adult social care capital limits remain £23,250 and £14,250. But the figure that matters is your assessable capital after the correct rules and disregards have been applied. Property does not always count, gifts are not automatically ignored, and income is assessed separately. Ask for the calculation in writing, compare it with the current Care Act charging guidance and challenge errors with evidence rather than relying on verbal explanations.
Before your capital falls below the threshold
If you are self-funding and your savings are reducing steadily, do not wait until the balance reaches £23,250 before contacting the council. Funding does not necessarily begin automatically on the day your account crosses the threshold. The council may need time to assess your care needs, decide which needs are eligible, work out how they should be met and complete a financial assessment.
Keep a simple monthly record of assessable capital and expected care-home fees. If your savings are approaching the upper limit, ask the council what notice it needs and what evidence to provide. This reduces the risk of a gap in which the care home expects payment while the council is still completing its process.
Care-home choice and top-ups are separate questions
Qualifying for council help does not mean every available care-home fee must be paid by the authority. The council should identify an amount sufficient to meet the person’s eligible assessed needs, but a chosen placement can cost more. A third-party top-up may sometimes be required where someone chooses a more expensive option, subject to the Care Act rules.
Ask the council to separate three figures clearly: the personal contribution from the financial assessment, the council’s contribution, and any additional top-up. Mixing these figures together makes it difficult to see whether the means test itself is correct.
Keep the assessment under review
A financial assessment is not a once-only document. Changes in savings, property status, benefits, income, household circumstances or care arrangements can alter the result. Tell the council when a material change occurs and keep evidence of the date you notified it.
If a property is sold, a spouse moves into or out of the former home, a benefit changes, or a deferred payment agreement starts or ends, ask whether a revised financial assessment is required. A current written calculation is far more useful than relying on an old weekly contribution figure.
