Care Funding Thresholds UK 2026: England, Scotland, Wales & NI

Why Care Funding Thresholds Matter

A financial assessment evaluates an individual’s income, savings, and assets (such as property if residential care is needed). Based on the results:

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- People with resources above the upper threshold pay for their own care (self-funders).
- Those with resources between the upper and lower thresholds may receive partial support.
- Individuals below the lower threshold qualify for full local authority funding.

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Care Funding Thresholds Across the UK (2025/2026)

England and Northern Ireland: Strictest Thresholds

Both England and Northern Ireland apply the lowest upper savings threshold of £23,250. Anyone with assets above this level must fund their own care. The lower threshold is set at £14,250, meaning individuals with less than this amount qualify for full funding.

Scotland: More Generous Allowances

In Scotland, thresholds are higher, reflecting a more generous system. The upper threshold stands at £35,000, while the lower threshold is £21,500. This provides a wider band where partial local authority support may be available.

Wales: Distinctive Approach

Wales sets the most generous limit for care home funding, with an upper threshold of £50,000. For home care, a different limit of £24,000 applies. This allows individuals to retain more of their savings before needing to pay for care themselves.

What This Means for Families in 2026

The impact of these thresholds is clear:

1. Where you live in the UK directly influences whether you pay for your own care.
2. Savings and property assets play a decisive role in financial assessments.
3. Planning ahead is essential, as thresholds can determine if care is affordable without additional financial products such as equity release or deferred payment agreements.

For full and updated information, visit the official UK Government guidance:
Paying for Your Own Care – GOV.UK

The scrapped £86,000 care cap: what it means for families in 2026

In 2021, the government announced a lifetime cap of £86,000 on personal care costs, meaning no one would ever pay more than this amount for their own care. The cap was due to come into force in October 2025 but was cancelled by the Labour government in 2024.

What this means in practice: there is currently no limit on how much someone in England or Northern Ireland can be required to spend on their own care. A person with significant assets can exhaust their entire savings on care costs before local authority funding kicks in at the £23,250 threshold.

For families planning ahead, this makes early financial planning more important than ever. Options worth exploring include:

Deferred Payment Agreements — delay paying care fees against the value of your property until it is sold
NHS Continuing Healthcare — if health needs are complex, the NHS may fund all care costs regardless of assets
Moving to Scotland — for families with the flexibility to do so, Scotland's Free Personal Care and higher thresholds offer significantly greater financial protection

FAQ – Care Funding Thresholds UK 2026

What are care funding thresholds in the UK?

They are financial limits used to decide whether you must pay for your own care or receive funding from your local authority.

Why are thresholds different across the UK?

Health and social care policies are devolved, so England, Scotland, Wales and Northern Ireland set their own funding rules.

Does property count towards the threshold?

Yes, if you need residential care. However, your main home may be excluded if a spouse or dependent continues to live there.

Is there a cap on care costs in England?

The planned £86,000 lifetime cap was cancelled in 2024. Currently, there is no cap on self-funding care costs.

How do thresholds affect home care?

In most regions, the value of your home is not included if you continue living there while receiving home care.

Has anything changed about care funding thresholds in 2026?

The thresholds themselves have not changed significantly, England and Northern Ireland remain at £14,250 lower / £23,250 upper, Scotland at £18,000 / £35,000, and Wales at £50,000 upper for residential care. The most significant recent change was the cancellation of the planned £86,000 lifetime care cap in 2024, which means there is still no upper limit on self-funded care costs in England.

If I move to Scotland, do I benefit from Scotland's care funding rules?

Yes, care funding is determined by where you are ordinarily resident at the time care is needed, not where you were born or previously lived. However, the local authority responsible for funding is the one where you were ordinarily resident immediately before entering care. Moving to Scotland specifically to benefit from free personal care is legally permitted but must be a genuine change of residence, not a temporary arrangement.

Does the value of my home count in the means test for all four nations?

In all four nations, the value of the family home is excluded from the means test for home care (while the person continues to live there). For residential care, the home is generally included after 12 weeks, but is excluded if a spouse, civil partner, or certain dependants continue to live there. Wales and Scotland apply this protection broadly; England and Northern Ireland follow the same principle.

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