A worked example (illustration only). A retired man with savings of £40,000 moves permanently into a care home with no partner at home. Because there is no lifetime cap, nothing limits his total future spending on care. As his capital sits above the upper limit of £23,250, he is generally treated as a self-funder and expected to meet the full cost for now (
gov.uk, as at July 2026, subject to change). As his savings fall and pass below £23,250, a tariff income of £1 a week for every £250 between the limits would apply, and once below £14,250 his capital would no longer count, with income still assessed. Every case differs and figures change, so this is general information rather than a calculation for any real situation.
Planning ahead without a cap
Because there is no cap limiting lifetime care spending, some families look more closely at care fees planning. This is about understanding how the means test works and mitigating the impact of care costs within the rules, rather than trying to sidestep them. Many people choose to review their savings, income, benefits such as Attendance Allowance, and how any property might be treated, well before care is needed.
Options some consider include checking eligibility for NHS funding, using a deferred payment agreement where a home would otherwise have to be sold, and reviewing wills and property ownership. Some also look at regulated products, such as care fee annuities or investment arrangements, though these are financial products where it can be worth taking advice from an FCA-authorised adviser. There is no single answer that fits every household, so it can be worth discussing your circumstances with a qualified professional.
- Understand the means test. Know how capital and income are assessed before decisions are made.
- Check for free care. Some health needs may be met by the NHS rather than the council.
- Review property and wills. How a home is owned and left can affect later options.
- Take advice on products. Care annuities and similar arrangements are regulated; an FCA-authorised adviser can explain them.
Can you give assets away to reduce care fees?
With no cap in place, some people ask whether giving assets away would lower a future care bill. This has to be approached carefully. Councils can look at whether someone has deliberately reduced their assets to avoid or lower a care contribution, under what are known as the deprivation of assets rules. Where they decide capital was given away for that purpose, they can treat the person as still holding it, as "notional capital", when working out the means test (gov.uk, as at July 2026, subject to change).
There is no fixed time limit on how far back a council can look, and timing and motive both matter. Deliberately transferring a home or savings to avoid care fees can be challenged and may not achieve what people hope. Legitimate later-life planning is about understanding the rules and limiting the impact of care costs within them, not engineering a particular result. It can be worth discussing your circumstances with a solicitor or a suitably qualified adviser before acting.
When care can be free of charge
Not all care is means-tested. Where someone has complex, ongoing health needs, they may qualify for NHS continuing healthcare, which is arranged and funded by the NHS and is free of charge, based on assessed health needs rather than income or savings (NHS, as at July 2026, subject to change). Eligibility depends on needs, not on any single diagnosis, and it sits outside the means test that the cap would have sat alongside.
Scotland, Wales and Northern Ireland
The position above applies to England. The other UK nations run their own systems, and the scrapped cap was an England policy. Scotland has higher capital limits and provides some personal and nursing care without charge for those assessed as needing it. Wales uses a single, higher capital limit for residential care and caps non-residential charges. Northern Ireland operates broadly similar limits to England. Because the figures and rules differ, anyone with care needs in those nations can check their own government's guidance or take local advice.
Frequently asked questions
Is there a cap on care costs in England?
No. The planned £86,000 lifetime cap on personal care costs was among the charging reforms confirmed as not being taken forward, following the Chancellor's announcement of 29 July 2024 (gov.uk, as at July 2026, subject to change). Care fees in England are still worked out through the local-authority means test.
How much was the care cost cap going to be?
The most recently planned figure was a lifetime cap of £86,000 on what a person would pay towards their personal care, alongside higher capital limits that were also proposed but did not go ahead (Which?, as at July 2026, subject to change). None of these changes came into force, so the figures are of historic interest only.
Why was the care cost cap scrapped?
The reforms were confirmed as not being taken forward after the Chancellor's announcement of 29 July 2024, having earlier been delayed from October 2023 to October 2025 (gov.uk, as at July 2026, subject to change). The government has not set out replacement plans, so the existing rules continue for now.
How are care fees worked out now?
Through the local-authority means test. Someone with capital above the upper limit of £23,250 is generally expected to pay in full, while below the lower limit of £14,250 their capital is not counted, though income is still assessed (gov.uk, as at July 2026, subject to change). Different limits apply in Scotland, Wales and Northern Ireland.
Is there any limit on what a self-funder pays?
Not at present. Because the lifetime cap did not come into force, there is currently no ceiling on total care spending for a self-funder in England (gov.uk, as at July 2026, subject to change). Fees continue until capital falls towards the means-test limits or another form of support applies, so many people plan ahead.
Could a care cost cap come back?
It may. The reforms were cancelled rather than replaced, and future governments could introduce a cap or other changes, so the position can change (gov.uk, as at July 2026, subject to change). For now, no cap applies, and it can be worth keeping an eye on official announcements or taking advice.
About Fairchild Oldfield
The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.
Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.
Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Figures and rules are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.
