Residential care savings limit increased

Local Assembly Member Vikki Howells has welcomed the Welsh Labour Government’s announcement that people in Cynon Valley are now able to keep up to £40,000 of their money before they need to self-fund the full cost of their residential care.

Welsh Labour pledged 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, as part of their ambitious manifesto during the 2016 Assembly elections.

A 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.

The increase is being delivered in a phased approach, starting in April 2017 when the limit was increased to £30,000. The capital limit has today increased further from £30,000 to £40,000.

This stands in stark contrast with the situation in England, where the capital limit stands at just £23,250.

There are up to 4,000 care home residents in Wales who pay for the full cost of their care. Around 450 care home residents have already benefitted from the increase last year, with a steady increase in this number expected.

Vikki Howells AM said:-

“This is the second step in delivering one of our top six pledges to double the amount of capital a person in residential care can retain.”

“From this month the capital limit is rising from £30,000 to £40,000, thereby allowing residents to retain a further £10,000 of their hard earned savings and other capital to use as they wish. By the end of the currently Assembly, the limit will be raised to £50,000.”

“This is about Welsh Labour delivering on our pledges to the people of Wales and offers a clear contrast to the uncaring Tories in Westminster.”