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.
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.
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.
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).
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.
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.
We report fee income by funding route for care homes and model the effect of residents moving between routes.
£23,250 in England. The lower capital limit is £14,250.
£1 a week for every £250 of capital between the lower and upper limits, rounded up.
The four ways a nursing home place is paid for, including NHS-funded nursing care at £267.68 a week.
What councils are told about fee levels, and the cost case that answers it.
Occupancy, staff cost ratio and the other measures we report each month.
We look at your last accounts, your payroll hours and your fee rates, and tell you what we would change.