What Happened to the £86,000 Care Cap? (2026 Update)

In short: there is no cap on care costs. The £86,000 lifetime cap planned for England was delayed twice and then cancelled in July 2024, before it ever started. Today, what you pay is still decided by the council's means test.

What was planned

In September 2021 the government announced that, from October 2023, there would be an £86,000 cap on the amount anyone in England would have to spend on their personal care over their lifetime. Once someone reached the cap, they would still have contributed towards their daily living costs, but not their personal care.

The plan would also have made the means test more generous, with a new upper limit of £100,000 (instead of £23,250) and a lower limit of £20,000 (instead of £14,250).

What happened

In the Autumn Statement of November 2022, the start of the reforms was delayed from October 2023 to October 2025.

On 29 July 2024, the Chancellor told Parliament that the adult social care charging reforms would not go ahead, saying it would save over £1 billion by the end of the following year. That cancelled the cap and the higher means-test limits.

In January 2025 the government announced an independent commission into adult social care, chaired by Baroness Casey. Its first phase is to set out a plan for a national care service and was due to report in 2026; the second phase is due to report by 2028. Any future changes to how care is paid for would depend on what the government decides after that.

The rules that apply now

In England in 2026/27, the council looks at your savings, other capital and income:

• Over £23,250: you usually pay the full cost of your care yourself.
• Between £14,250 and £23,250: the council helps, and you pay from your income plus £1 a week for every £250 of savings over £14,250.
• Under £14,250: your savings aren't counted, and you pay from your income.

Your home is counted if you move into a care home permanently, unless a partner or certain relatives still live there. It is ignored for the first 12 weeks, and you may be able to get a deferred payment agreement so you don't have to sell it straight away.

The limits are different elsewhere in the UK: £36,750 and £22,750 in Scotland, where personal care is also free for those assessed as needing it; a single limit of £50,000 in Wales; and the same limits as England in Northern Ireland.

Help that doesn't depend on the means test

• Attendance Allowance: £76.70 or £114.60 a week in 2026/27 for people over State Pension age who need help with care. It isn't means-tested, and self-funders in a care home can keep claiming it.
• NHS-funded nursing care: the NHS pays towards the nursing part of care in a nursing home.
• NHS continuing healthcare: if someone's needs are mainly health needs, the NHS pays for all their care.

Planning without a cap

With no cap, care costs have no upper limit, so it is worth getting advice early. Our guides explain the options:

• Paying for care: the full guide
• Deprivation of assets: what counts and what doesn't
• How long would a home's value pay for care? (calculator)

Related guides

• How Much Does a Nursing Home Cost in the UK? 2026 Fees by Region
• How Much Does Dementia Care Cost in the UK? 2026 Fees by Region

Sources

• Build Back Better: our plan for health and social care (GOV.UK, 2021)
• Autumn Statement 2022 (GOV.UK)
• Chancellor statement on public spending, 29 July 2024 (GOV.UK)
• Independent commission into adult social care: terms of reference (GOV.UK)
• Attendance Allowance (GOV.UK)