Capital Limits Care Home Northern Ireland: The £23,250 Threshold Explained

The number that matters most in Northern Ireland's care home funding system is £23,250. If your parent has capital above that threshold, they pay for everything. Below it, the HSC Trust starts contributing. And the way the Trust calculates contributions in the middle band catches most families by surprise.

The Two Thresholds

Northern Ireland sets two capital limits for residential and nursing home care, governed by the CRAG (Charging for Residential Accommodation Guide) regulations:

Upper capital limit: £23,250 — anyone with assessable capital above this figure is classified as a self-funder. The Trust will not contribute to care home fees. Your parent pays the full weekly cost until their capital drops below this threshold.

Lower capital limit: £14,250 — capital at or below this amount is completely disregarded. Your parent contributes only from their income (State Pension, occupational pensions, certain benefits), and the Trust covers the remaining care home fees.

These limits have remained unchanged for several years. England still uses the same £23,250 upper and £14,250 lower figures; the Care Act charging reforms that would have raised English limits were never implemented.

The Tariff Income Band

Capital between £14,250 and £23,250 creates what the Trust calls "tariff income" — a notional weekly charge calculated as £1 for every £250 (or part of £250) above the lower limit.

The formula: subtract £14,250 from your parent's assessed capital, divide by 250, round up any fraction to the next whole number, and multiply by £1. That weekly figure gets added to your parent's actual income to determine their total contribution.

Worked example: Your parent has £20,000 in savings.

£20,000 minus £14,250 equals £5,750. Divide by £250 to get 23. Tariff income: £23 per week. That £23 is added on top of pension income and other assessable income when the Trust calculates the weekly contribution.

Second example: Your parent has £15,100.

£15,100 minus £14,250 equals £850. Divide by £250 to get 3.4, rounded up to 4. Tariff income: £4 per week. Even a small amount above the lower threshold triggers a contribution.

What Counts as Capital

The Trust's financial assessor will look at:

• Bank and building society accounts — current accounts, savings accounts, ISAs, fixed-term deposits
• Investments — stocks, shares, unit trusts, premium bonds (at face value, not potential winnings)
• Property — the family home's market value minus 10% (for estimated sale costs) minus any outstanding mortgage, unless a qualifying person lives there
• Land — any land your parent owns, assessed at market value
• Business assets — if your parent has wound down a business, the remaining assets count

What does not count:

• The value of personal possessions (furniture, car, jewellery — unless bought specifically to reduce capital)
• The surrender value of life insurance policies
• Capital held in certain trust arrangements that predate the need for care

Joint accounts deserve attention. If your parent holds a joint savings account with a spouse, the Trust typically assumes a 50/50 split unless evidence shows otherwise.

What Counts as Income

Nearly all regular income is included in the assessment:

• State Pension (full amount)
• Occupational and private pensions
• Attendance Allowance (if your parent is a self-funder, they keep it; if Trust-funded, it stops after 28 days)
• Pension Credit

Protected income: The Trust must leave your parent with the Personal Expenses Allowance — £34.10 per week for 2025/26. This is their pocket money for personal items like clothing, toiletries, and small purchases. If your parent receives the savings credit element of Pension Credit, they can keep an additional £5.75 per week on top of the PEA.

The mobility component of DLA or PIP is fully disregarded. The Trust cannot touch it.

The Self-Funder Threshold Approach

The most stressful period for self-funding families is watching capital approach £23,250 from above. Care home fees in Northern Ireland typically range from £700 to over £1,000 per week for nursing care, so capital can erode quickly.

When savings cross below £23,250, your parent becomes eligible for Trust funding — but the transition is not automatic. You need to:

1. Notify the Trust's financial assessment unit before capital drops below the threshold
2. Request a new financial assessment
3. Continue paying fees in the interim until the Trust confirms funding

Allow several weeks for processing. Some families find themselves temporarily covering fees from diminishing savings while the Trust completes the reassessment. Starting the conversation at around £25,000–£26,000 in remaining capital gives enough runway.

Property and the Capital Assessment

If your parent's home is their main asset, the capital assessment depends entirely on who still lives there. The property is disregarded if occupied by a spouse, a relative aged 60 or over, an incapacitated relative, or a child under 16 the resident is liable to maintain.

If nobody qualifying lives there, the home's value enters the assessment. A mandatory 12-week property disregard applies at the start of a permanent placement — the Trust ignores the home for those first 12 weeks, giving the family time to plan. After that, the full assessed value (minus 10% for notional sale costs) is treated as capital.

The Northern Ireland Care Funding Guide includes a tariff income calculator worksheet and a property assessment planning template to help families work through these numbers before the Trust's assessor arrives.

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