Did you know that care fees vary significantly across the UK? In Wales, residents benefit from a £50,000 limit on the amount they may have to contribute toward residential care, while in England, a planned £86,000 lifetime cap on personal care costs was scrapped by the Labour government in 2024. This means that many people in England could face higher, potentially unlimited costs, while Welsh residents have more protection for their savings.
Wales: £50,000 Limit Provides Financial Protection
In Wales, anyone with savings or assets above £50,000 generally pays the full cost of their residential care. Those with £50,000 or less are eligible for local authority support, calculated through a means test. For home care, charges are capped at £100 per week, helping residents manage costs without risking their financial security. Local authorities also ensure a minimum income amount remains to cover personal expenses, safeguarding dignity while in care.
The average cost of residential care in Wales is approximately £1,156 per week, making it clear why understanding your entitlements is crucial to protecting your assets.
England: The Scrapped £86,000 Cap
In England, the government had proposed a lifetime cap of £86,000 on personal care costs, meaning once an individual had paid that amount, the state would cover further expenses. However, the Labour government scrapped the plan in 2024, citing public finance pressures and a £22 billion funding gap. Without the cap, English residents with assets above £23,250 remain fully responsible for their care costs, which can create significant financial strain.
Why This Matters
Whether you live in Wales or England, understanding how care funding works is essential. Rules around means testing, capital thresholds, and what counts as assets can be complex. Getting expert advice early can prevent unnecessary financial loss and ensure you receive the support you’re entitled to.
How We Can Help
Generation Financial Planning, based in Wales, provides tailored advice to clients in both Wales and England. We can guide you through:
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Means testing and eligibility rules in your region
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Protecting your savings and assets
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Planning ahead for care costs, including residential and home care
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Understanding differences in care funding between Wales and England
Don’t leave your future to chance. Contact us today to discuss your situation and get professional guidance tailored to your circumstances.
📞 Call us on 0333 320 8626 or 07984 809072
📧 Email: enquiries@generationfp.co.uk
Our experienced team will guide you step by step, helping you make informed decisions and secure your financial future — whether you live in Wales or England.
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