Care home residents in Wales can keep £50,000 rather than spend it on care

People living care homes in Wales can keep up to £50,000 of their money rather than spending it on their residential care – more than double the £23,250 allowed in England.

Care home residents get to keep their savings, investments and other capital up to £50,000, after the Welsh Government increased the nation’s capital limit by £10,000 (up from £40,000).

The new capital limit means people with up to £50,000 assets receive financial support from the council towards the cost of their residential care. Those with assets (including property) over this amount must pay towards the cost of their care until they have only £50,000 left.

Julie Morgan, deputy minister for Health and Social Services, said: “The Welsh Government is committed to supporting older people, and those requiring care, to live the lives they want to lead.

“I’m delighted to say that we are fulfilling our pledge, two years earlier than we originally planned, to allow people to keep up to £50,000 of their own savings to use as they wish, without having to use this to pay for their care.”

The Welsh Government said its Taking Wales Forward commitment has been delivered two years earlier to help more people requiring care now.

Effective from 8 April, Wales is now offering the most generous terms in the UK. The new limit is higher than Scotland’s £28,000 and far higher than England and Northern Ireland’s £23,250 limit.

In England, those in residential care face losing all savings and assets including their house down to their last £23,250 and this limit has been unchanged since 2010.

Earlier this year, health secretary Matt Hancock reportedly warned Prime Minister Theresa May that any social care green paper plans for a £100,000 cap on care costs would cost £3.4 billion and would lead to major tax rises.

His promised deadline to deliver a social care green paper in April came and went and with it many people's hope they will see any blueprint for how a struggling care system can be saved.

This month, care minister Caroline Dinenage told carehome.co.uk, she was ‘hopeful’ the green paper (which has been delayed six times) will arrive this summer.