If you’re moving into a care home and have capital that’s more than the amount shown in the middle column of the table below, you’ll usually have to pay all the care home fees.
If your capital is no more than the amount shown in the last column, your capital will be disregarded.
These thresholds include the value of your home unless your partner or another dependant still lives there.
In between the two thresholds, your capital will be assumed to produce a ‘tariff income’. The amount of tariff income is assumed to be £1 a week for each £250 of capital you have above the lower threshold.
For example, suppose you live in Scotland and have capital of £25,100. The first £18,000 of your capital is disregarded. The remaining £7,100 is divided into £250 chunks (treating the odd £100 as a complete chunk). There would be 29 chunks, so you would be treated as receiving £29 a week from your capital.
Any income from your capital is ignored. But the tariff income is added to your other eligible income before working out how much you have to contribute.
If the means test reveals sufficient capital that the local authority should pay for all or some of your care home place, you’ll still have to contribute all eligible income (including the tariff income), minus a small amount of money you’re allowed to keep for personal expenses.