Government Issues 2026–2027 Social Care Charging Guidance for Local Authorities

The UK government has released new, clearer guidance for councils in England on how to charge people for adult social care in the 2026–2027 financial year. This update lays out exactly how much people are expected to pay, depending on their savings and income.

The main asset thresholds aren’t changing: if you have more than £23,250 in savings or property, you’ll usually pay the full cost of living in a care home. If you have between £14,250 and £23,250, you’ll pay a portion based on your income and savings. With less than £14,250, only your income is considered, and you’ll just pay what you can afford.

When it comes to care home residents: the Personal Expenses Allowance—the money you get to keep for yourself—will go up slightly, from £30.65 to £31.80 per week starting April 2026. 

The Minimum Income Guarantee, which makes sure people receiving care at home don’t fall below a set income, is also rising. For those under Pension Credit age, it goes up by 7%. For those over that age, it increases by 3.8%, matching inflation. The Savings Credit disregard will also see a 3.8% increase. 

Councils are expected to use these new numbers when figuring out how much people should pay, following the Care Act 2014. The aim is to keep things fair and consistent across England, adjusting for inflation and the rising cost of living.

This guidance is part of the government’s bigger plan for funding adult social care, helping councils set their budgets and make sure everyone is charged fairly.

If you have questions about a loved one’s care and how it will be funded, contact our specialist team on: 01926 354704 or email: debbiea@moore-tibbits.co.uk