According to a Government circular, the upper capital limit for residential care is to stay at £23,250 from April 2020, while the lower limit, below which people receive full public funding subject to them foregoing much of their income, will stay at £14,250.
The annual circular on charging for care and support said that the lower and upper capital limits would remain at £14,250 and £23,250 respectively in 2020 to 2021, meaning that individuals with less than £14,250 in assets, in most cases including their home, do not have to pay for their residential care from their assets.
King’s Fund Social Care Senior Fellow Simon Bottery highlighted how the upper limit has fallen by £4500 in real terms since 2010, meaning more people will be forced to self-fund their care. He said the upper limit has now been capped for the tenth consecutive year, adding: "The effect is that publicly funded social care is being denied to more and more people."
He said: "Though social care has other, more urgent, issues to tackle right now this matters because it affects people directly; they have to pay for themselves, rely on family or go without; and as a symbol of a wider policy indecision that has beset social care for too long.”
The personal expenses allowance has also been frozen for the fifth consecutive year, so that the weekly sum that publicly-funded care home residents can keep from their income is still £24.90.
The minimum income guarantee was also frozen for the fifth year in a row.
For people receiving care at home, the minimum income guarantee, the minimum weekly amount they must be left with after charging, remains at 2015 levels; the amount an individual receives differs depending on their age and whether they have dependent children, are a lone parent or are in a couple.
Last reviewed 25 March 2020