The Welsh Government has advised, that as of the 9th of April last, people in Wales, and in residential care, will see their savings limit increase.
The capital limit has increased from £30,000 to £40,000 meaning that they will be able to retain a further £10,000 of their savings.
The capital limit in Wales is now the highest in the UK. The Welsh Government has promised a further saving in the future and the statement made by The Minister for Children and Social Care, Huw Irranca-Davies is as follows:
“…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 current Assembly, the limit will be raised to £50,000.”
The statistics provided were that there are 4,000 care home residents who, because of the savings cap, pay the full cost of their care. It is estimated that 450 care home residents have already benefitted from the 2017/2018 increase to £30,000 and it is anticipated that this will rise further as a result of the increase to £40,000.
The Minimum Income Amount (MIA) has also been increased from £27.50 per week to £28.50 per week. The MIA is the income a resident can have whilst in residential care and in receipt of local authority financial assistance, and which sum can be spent on personal items as they so desire.
It isn’t all good news however and for those that are in receipt of care, but not in residential care, the maximum weekly charge has been raised from £70 per week to £80 per week. The Welsh Ministers have gone further and advised that, as part of the Government’s long-term plan, this will increase to £100 per week, by the end of the current Government’s term. Regard will be had however, when assessing any contribution, to affordability and the current capital limit (which remains unchanged) of £24,000.