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Self-funders and the care home capital limits

In England for 2026/27, a care home resident with capital over £23,250 pays the full fee. Capital below £14,250 is not counted, and tariff income applies between the two.

The limits for 2026/27

DHSC's charging circular for 2026/27 keeps the upper capital limit at £23,250 and the lower limit at £14,250. Below the upper limit, a person can seek means-tested support from the council. Capital below the lower limit is not taken into account.

Capital and care home fees in England, 2026/27

Below £14,250Not taken into account in the means test.
£14,250 to £23,250Tariff income of £1 a week for every £250.
Over £23,250The resident pays the full fee.
£0£14,250£23,250
Sources: DHSC, social care charging circular 2026 to 2027; Care and support statutory guidance, paragraphs 8.12, 8.13 and 8.20.

Tariff income

Between the two limits, a person may be charged £1 a week for every £250 of capital above the lower limit, rounded up. The guidance's example is capital of £18,100: that is £3,850 above £14,250, which divided by £250 is £15.40, so the tariff income is £16 a week.

Self-funders and the council

Where a person with capital above the upper limit needs a care home, the statutory guidance says the council "may choose to meet those needs and arrange the care, but is not required to do so" (paragraph 8.13).

Top-ups

A person can choose a more expensive home "where a third party or in certain circumstances the resident is willing and able to pay the additional cost" (paragraph 8.37). The personal expenses allowance a resident keeps is £31.80 a week for 2026/27.

The fee a home receives

When a self-funded resident's capital falls to the upper limit, they can seek council support, and the fee the home receives can move to the council's rate. A fee ledger that records each resident's funding route keeps those changes in the cash flow forecast.

How we help

We report fee income by funding route for care homes and model the effect of residents moving between routes.

Common questions

What is the upper capital limit for 2026/27?

£23,250 in England. The lower capital limit is £14,250.

How is tariff income worked out?

£1 a week for every £250 of capital between the lower and upper limits, rounded up.

Related reading

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The four ways a nursing home place is paid for, including NHS-funded nursing care at £267.68 a week.

Negotiating your council's care fee uplift

What councils are told about fee levels, and the cost case that answers it.

Management accounts KPIs for care homes

Occupancy, staff cost ratio and the other measures we report each month.

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