The amount of money people in Wales can keep when in residential care will increase from £30,000 to £40,000 from April 2018.
The move is part of the Welsh Government’s Programme for Government commitment to increase the capital limit used by local authorities who charge for residential care from £24,000 to £50,000 during the current Assembly term.
The increase is being delivered in a phased approach, which commenced from April 2017 when the limit in relation to residential care was increased to £30,000.
The capital limit determines whether a person pays for the full cost of their residential care, or whether they receive financial support towards the cost from their local authority.
There are up to 4,000 care home residents who pay for the full cost of their care. Increasing the capital limit to £50,000 has the potential to benefit a significant number of these, depending upon the value of the capital they hold.
Social Care Minister, Huw Irranca-Davies said:
“The Welsh Government is committed to supporting older people, and those requiring care, to live the lives they want to lead.
“We promised to more than double the capital people can keep when in residential care – freeing up more of people’s money for them to use as they wish.
“We are now well on our way to delivering that pledge to the people of Wales. We know that well over 400 people are already benefiting from the increase in the limit, and we expect this to rise substantially when the limit is increased to £50,000.”