The adult social care charging reform is coming in 2025, but what does that mean for you and your loved ones needing care?
As part of the Government’s 2021 Vision for Adult Social Care, a comprehensive reform initiative was introduced to support people needing care and help reduce some of the financial burdens associated with receiving social care services. These reforms are expected to come into effect in 2025.
Most importantly, for many families, the upper capital limit (UCL), which means the threshold beyond which a person becomes responsible for funding their own care, will increase to £100,000, up from the current £23,250.
In this article, we will unpack what the adult social care charging reform is and the ways in which these changes to the care sector could affect you and your family.
What is adult social care funding?
Adult social care funding in England refers to the support and assistance provided to adults who have difficulty managing various aspects of their daily lives due to physical or mental disabilities, illness, or old age.
People in need of social care funding undergo a care assessment through their local authority to identify their needs and develop personalised care plans. These plans outline the support and services required to meet the individual’s specific needs and goals.
“Means-tested” refers to a method of assessment used by local authorities to determine eligibility for financial support. During the means-test, the local authority evaluates the financial resources of an individual, including their regular income and any assets they own, such as savings, investments, and property. Importantly, the primary residence (home) occupied by the individual and their spouse is typically exempt from consideration.
This adult social care funding can either cover the entire cost of care or contribute towards it. It is intended to subsidise care services provided to an individual, helping them to manage the tasks of daily life more effectively. Whether that means helping with personal care such as washing and dressing or enabling them to participate in the social activities and hobbies they enjoy. If an individual is eligible for financial support, social care funding can ease some of the costs of care.
To find out if you are eligible for funding from your local authority, you will need to get in touch with the Adult Social Care Department at your local council to request a care needs assessment. These assessments are free, and anyone over 18 is entitled to one.
Adult social care charging reforms due in 2025
Back in 2021, the Government unveiled a 10-year vision for adult social care, aiming to expand options for care recipients and provide financial assistance to cover care expenses. Key reforms included the introduction of an £86,000 care spending cap and adjustments to asset and savings thresholds. These changes will significantly impact individuals receiving various types of adult social care, such as home care or residential care.
Currently, only those with less than £14,000 worth of assets and savings are eligible for complete coverage of their care costs by their local authority. People with assets of over £23,250, known as the upper capital limit (UCL), must fund their own care.
Departing from the current social care funding guidelines, the reforms planned for 2025 include:
- A care cap of £86,000. This means that once this number is reached, people will have access to social care funding to pay for the rest of the care costs they incur.
- If an individual has more than £100,000 (compared with the current £23,250 UCL) in savings and assets, they’ll be classed as a self-funder and must pay for their own care costs.
- Having between £20,000 and £100,000 in savings and assets will mean that the local authority will contribute to the individual’s care on a means-tested basis.
- Those with less than £20,000 in savings and assets will benefit from local authority funding towards their care.
The adult social care charging reforms were originally due to come into effect in 2023. However, this has been delayed by two years. From October 2025, the new adult social care charging reforms are expected to be introduced.
Care fees cap in 2025
The adult social care charging reforms are not just beneficial for those needing financial support for their care plan. Individuals who are already funding their own care will also be able to benefit from the proposed care fees cap. The reforms aim to level the playing field, ensuring that everyone has access to quality care services without overspending.
The care fees cap, which is expected to come into effect in October 2025, will put a limit on the amount of money an individual needs to pay for their own care. Should the cap of £86,000 be reached, then funding will be provided to cover any additional costs over their lifetime going forward. The cap will be implemented for all adults, without exemption.
Changes to capital limits for care funding
Another major change in the adult social care charging reform involves revising the capital limits for care funding. The updated thresholds will expand eligibility for funding to a greater number of people.
From October 2025, the UCL will increase to £100,000, meaning that those receiving care can gain access to funding if they have assets and savings to the value of £100,000. The current UCL is £23,250, excluding many people from the eligibility criteria for funding support.
The UCL of £100,000 will apply universally, irrespective of an individual’s care setting or circumstances. In addition, the LCL (lower capital limit) will rise to £20,000 from £14,250. With this new reform, individuals with less than £20,000 will be eligible for completely funded care.
What is included in social care funding?
If you are eligible for social care funding, there are a number of ways that individuals needing care can benefit. The funding distributed by local authorities can help with everything from occasional care visits to condition-led care for complex needs.
For example, a carer can help you with:
- Help preparing or enjoying meals
- Getting dressed and undressed
- Getting in and out of bed
- Personal hygiene, such as washing and bathing
- Support with medication management
- Companionship and emotional support
However, social care funding and the care cap don’t include other care-related costs. Fees for accommodation, utility bills, food shopping and cleaning are not covered.
The exclusion of rent or accommodation costs as part of the cap will apply equally to individuals in a care home as to those living in their own home. This was designed to ensure that those who receive care in a care home and individuals receiving in-home care benefit equally from the new adult social care charging reforms.
How adult social reforms impact home care
The upcoming changes to charges for non-residential adult social care will have a positive impact on those receiving in-home care.
Some of the advantages of the adult social care charging reforms include:
- Supporting people to stay more independent in their own homes.
- Broadening the accessibility of care services to a wider range of people needing care.
- Recognising the effects of the cost of living crisis and its impact on the previous eligibility thresholds for social care funding.
- Ensuring a fair cost of care across the board.
The main takeaway from the 2025 adult social care charging reforms is the significant adjustment in the capital limits for care funding. These reforms will widen access to care funding by accommodating a broader range of people and hopefully reduce the financial burden of care expenses for many families.
With the new reforms, live-in care will be a much more accessible care option to a wider range of in. Families will no longer have to worry about having the finances to support their ideal care plan. With access to funding and the implementation of the care cap, the costs of care might be more affordable than you previously thought.
Home is where the heart is
How will these new adult social care funding reforms on the horizon affect live-in home care?
Live-in care received in the comfort of an individual’s own home will now be a very real option for a wider range of people. Accessibility to funding and the introduction of a spending cap means that live-in care can be subsidised, taking the financial pressure off.
Some of the many benefits of receiving live-in care include:
- Remaining in familiar surroundings in the comfort of your own home
- Live-in care is often more affordable than a care home
- Retain your independence
- Avoid the heartache of moving away from your home and local area
- Protecting the next generation’s inheritance and family home
- Dedicated one-to-one care
- Keeping beloved pets
- Personalised care, tailored just the way you like it
With the new adult social care charging reforms coming into action in 2025, there has never been a better time to receive home care. For more information about financing an in-home care plan and any benefit entitlement, check out our useful financing and funding care guide.
Talk to our team today
Country Cousins is the UK’s longest-serving introductory live-in care agency. We have been providing compassionate live-in care to people in their own homes since 1959. With over 60 years of experience, we can find the perfect carer for you or your loved ones.
Give us a call today on 01293 224 706. Our experienced team is on hand to help from Monday to Friday, 8 am to 6 pm. Alternatively, contact us through our online enquiry form.
