Care Home Means Test in Scotland: Capital Limits, Tariff Income and the 12-Week Property Disregard

When your parent moves into a care home in Scotland, the council runs a financial assessment to work out how much they should contribute toward the cost. Free personal care and free nursing care reduce the bill, but the accommodation and living costs — the "hotel" element — are means-tested against your parent's savings, income, and property.

Understanding how this assessment works before it happens gives you time to organize financial records and avoid costly surprises.

Capital Thresholds (2026/27)

The assessment divides your parent's capital into three bands:

Above £36,750 — your parent is classified as a self-funder. They pay the full care home fees, minus the flat-rate Free Personal Care (£260.30/week) and Free Nursing Care (£117.10/week if applicable) payments from the council.

£22,750 to £36,750 — partial council funding applies. Your parent qualifies for support, but a "tariff income" is added to their assessed weekly income: £1 for every £250 (or part thereof) of capital above £22,750. This means someone with £30,000 in savings would have £29 per week added to their assessed income on top of their actual pension and benefits.

Below £22,750 — savings are ignored as capital in the assessment, but your parent still pays a contribution from weekly income, retaining a Personal Expenses Allowance of £37.65 per week for personal spending.

The 12-Week Property Disregard

If your parent's main home is their largest asset, it can be included in the capital assessment if no permanent disregard applies. However, the 12-week property disregard gives families breathing space.

For up to 12 weeks from the day the local authority first arranges or funds the placement, the property is excluded from the assessment if other capital is below £36,750. The council funds the placement as if the house did not exist, giving the family time to decide whether to sell, rent, or make other arrangements.

The property is permanently disregarded if a spouse, civil partner, or partner (except where estranged), a relative aged 60 or over or under 18, an incapacitated relative, or an estranged or divorced partner who is a lone parent still lives there.

Deprivation of Capital

If the council believes your parent deliberately gave away money or transferred property to reduce their assessable capital and qualify for more funding, they can treat those assets as if they still exist — a concept called "notional capital."

The council examines the timing and motivation of any transfers. A gift given years before any care needs arose is harder to challenge than one made after a dementia diagnosis. There is no fixed "look-back period" in Scottish law, and councils can investigate transfers made many years before the care home admission.

If you believe a deprivation of capital ruling is unfair, you can challenge it through the council's complaints procedure and ultimately escalate to the Scottish Public Services Ombudsman (SPSO).

Top-Up Fees

If your parent's preferred care home charges above the National Care Home Contract rate, the family may need to pay the difference as a "top-up," documented in a third-party agreement before signing. For 2026/27, the NCHC standard rates are £930.45 per week for residential care and £1,074.13 per week for nursing care. Many specialist dementia units charge significantly above these rates.

Before agreeing to a top-up, ask the council whether they can find a suitable placement within the NCHC rate. If no suitable placement exists, the council has a duty to fund the full cost.

Preparing for the Assessment

Gather your parent's bank statements, pension details, benefit letters, property valuations, and records of any financial transfers well before the assessment. Being organized means the process runs faster and reduces the chance of errors in the council's calculation.

Our Scotland Dementia Care Guide includes a financial assessment preparation worksheet and a tariff income calculator to help you estimate your parent's likely contribution before the council assessment takes place.

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