Adult Social Care: Means-test parameters since 1997
This briefing considers how the main parameters for the financial means-test for adult social care - such as the capital limits - have changed since 1997.
Community care
Briefing
In summary:
- The lower and upper capital limits (which determine eligibility for local authority funding support) were increased year-on-year from 2001/02 to 2010/11. Since then, they have been frozen at their 2010/11 levels of £14,250 and £23,250 respectively.
- The Personal Expenses Allowance (PEA) (the amount of income someone in a care home must be allowed to retain each week after contributing towards the cost of their place when they receive local authority funding support) increased every year from 2000/01 to 2015/16, but has not changed since. It remains at £24.90.
- The Minimum Income Guarantee (MIG) (the equivalent to the PEA for people receiving care in settings other than care homes) was set at a level 25% higher than the equivalent rate of Income Support or Pension Credit (as applicable) until 2016/17. The rate has not been increased since 2016/17, meaning that the buffer has reduced as Income Support and Pension Credit rates have increased.
- The savings credit disregard (an additional amount of income that is disregarded for certain people) rose from 2003/04 – when it was first introduced alongside Pension Credit – until 2010/11. It has since remained at up to £5.75 a week for single people and up to £8.60 a week for couples.
More information on the current social care means-test can be found in the Library briefing paper, Social care: paying for care home places and domiciliary care (England).
Information on the current position regarding reform of how people pay for social care is available in Library briefing paper: Reform of adult social care funding: developments since July 2019 (England).
This briefing applies to England only.
Related items cited in this briefing
Documents