Care Homes: Finance
The question
To ask the Secretary of State for Health and Social Care, what comparative assessment he has made of the potential impact of (a) home-based and (b) residential care on the finances of people receiving that care.
Answered by Stephen Kinnock
Under the Care Act 2014 charging is based on a number of principles, including that people should not be charged more than it is reasonably practicable for them to pay and that charging approaches should be clear, transparent, and comprehensive.
Charging rules can differ between home-based and residential care. For home-based care, the person’s main home is disregarded, and income must not fall below the Minimum Income Guarantee (MIG). For residential care, the home’s value may be considered unless a spouse or other eligible adult remains living there, and income must not fall below the Personal Expenses Allowance (PEA). Both the MIG and PEA rates are reviewed annually and published in the Local Authority Circular. For 2025/26, these allowances were increased in line with consumer price index inflation, and local authorities may set higher rates at their discretion.
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