People in Wales are able to keep up to £40,000 of their money before they need to self-fund the full cost of their residential care, the Welsh Government has confirmed.
A capital limit determines whether a person pays for the full cost of their residential care, or whether they receive financial support towards the cost from their local authority.
The Welsh Government’s Programme for Government commits Ministers to increasing this capital limit used by local authorities who charge for residential care from £24,000 to £50,000 during the current Assembly term.
The capital limit in Wales is the highest in the UK. In England, people with capital and savings above £23,250 have to fund all of their own residential care.
The increase is being delivered in a phased approach, starting in April 2017 when the limit was increased to £30,000. The capital limit has today increased further from £30,000 to £40,000.
There are up to 4,000 care home residents who pay for the full cost of their care. Around 450 care home residents have already benefitted from the increase last year, with a steady increase in this number expected.
Social Care Minister, Huw Irranca-Davies said:
“This is the second step in delivering one of our top six 'Taking Wales Forward' commitments to more than doubling the amount of capital a person in residential care can retain without having to use this to pay for their care.
“From today, the capital limit is rising from £30,000 to £40,000, thereby allowing residents to retain a further £10,000 of their hard earned savings and other capital to use as they wish. By the end of the currently Assembly, the limit will be raised to £50,000.
“This is another firm example of this Welsh Government delivering its commitments to the people of Wales.”