Paying for Home Care in Scotland: Is There a Cap on Care Home Fees?

Understanding how care is funded in Scotland can feel overwhelming, particularly when you’re supporting loved ones or planning for your own future. Many families ask the same question early on: is there a cap on care home fees in Scotland? The answer is that while Scotland provides significant state funded support for personal care and nursing care, there is currently no lifetime cap on what individuals may need to pay. However, the system is designed to make social care more affordable through free personal care, financial assessments, and contributions from your local authority.

This guide explains how paying for care works, what financial help is available, and how Careline Home Support can provide alternatives to residential care — including services such as dementia care delivered in the comfort of your own home.

How Paying for Care Works in Scotland

Care costs vary depending on whether someone needs personal care, nursing care, specialist care, or support within a care home. The Scottish Government provides national rules that local authorities must follow, but different fees can apply depending on your care needs and whether you remain in your own home.

If you’re thinking about home support instead of moving into a care home, services like 24 hour care at home or overnight care can often offer a cost-effective and personalised alternative.

Free Personal Care in Scotland

Scotland offers free personal care for anyone aged 65 or over who has eligible care needs. This includes support with washing, dressing, medication and meal preparation. Free personal care also applies to younger adults with disabilities or long-term conditions.

Free personal care can reduce how much you need to pay for your care, but it does not cover accommodation costs in a care home or wider care fees. If nursing support is required, a separate contribution for nursing care is available, helping lower your weekly cost of care.

These contributions apply whether you live at home or in residential care, helping many people pay for your care more sustainably.

Care Needs Assessment and Financial Assessment

Before funding decisions are made, your local council completes two separate steps:

1. A care needs assessment

This determines whether you are eligible for support and what level of social care is required. The assessment looks at daily living tasks, mobility, health conditions, and the type of support you need week by week. It also helps decide whether you need personal care, nursing care, or support for more complex needs.

2. A financial assessment

After your care needs are identified, the council carries out a financial assessment (sometimes called a financial means test or just a means test) to understand how much you may need to pay. This includes reviewing your income, savings, capital, state benefits, and any money coming from pensions.

Your local authority will work out whether you qualify for council funding, whether you are a self funder, or whether your care will be fully publicly funded. The amount you contribute will vary depending on your capital limits, income and the value of certain assets — although your own home is not counted if you receive care at home.

Capital Limits, Upper and Lower Thresholds

The financial assessment uses two key thresholds:

• Lower limit: If your capital is below this threshold, you may qualify for maximum council funding.
• Upper limit: If your capital is above this amount, you will usually need to pay for your own care in full.

Capital includes savings, investments, and property (except the home you live in when receiving home care). If your capital falls between the lower and upper thresholds, part of your assets may be treated as tariff income — sometimes referred to as income called tariff income — to calculate how much you need to contribute.

For those choosing to remain in their own home, services such as live in care can support daily routines without the worry of accommodation costs or a move into a care home.

Is There a Cap on Care Home Fees in Scotland?

Although support is available, Scotland does not currently apply a lifetime cap on care fees. This means you may still need to pay care home fees depending on your financial assessment and care needs.

However, there are key protections:

• Personal care and nursing care contributions are available to everyone assessed as needing them.
• Accommodation costs are means tested to make them more affordable.
• Local authorities set standard rates for residential care and nursing homes, ensuring consistency across Scotland.

If a care home charges more than the local authority’s standard rate, families may need to pay top up fees. A top up fee is paid by a family member or other contributor rather than from the resident’s income.

What Counts As Care Home Costs?

Care home costs can include:

• Accommodation costs
• Personal care
• Nursing care
• Specialist care
• Food, utilities, transport and activities
• Additional services such as hairdressing or therapies

The amount you need to pay can vary depending on the care home, location, and the level of support you require.

Although there is no lifetime cap, the funding contributions for personal and nursing care help reduce weekly home fees. If you require funded nursing care or NHS funded nursing care, you may receive additional help. If your needs are primarily medical, you might qualify for NHS continuing healthcare, which is fully state funded and not means tested, though this is less common in a hospital setting or community care environment.

Benefits and Financial Support That May Help

Many people are eligible for benefits that can help with care costs. These may include:

• Attendance allowance
• Personal independence payment
• Disability living allowance
• State benefits for mobility or care needs
• A personal budget from your council in some circumstances
• Direct payment options to give you greater choice over how your care is provided

The value of these benefits and your income can vary depending on your circumstances, but they can contribute towards paying for care at home or in residential care.

The council will also leave you with a personal expenses allowance to ensure you retain enough income each week for essential items.

Paying for Your Own Care

If you are self funding your care, you will need to pay the full cost of care until your capital falls below the upper threshold. You may still receive contributions for personal and nursing care if assessed as eligible.

Self funded care can be flexible, especially if you want to stay in your own home in Scotland. Home support services allow you to maintain independence without moving into a care home. Options such as companionship care or tailored personal care packages can vary depending on your needs, from short visits to full-time live-in support.

Top up fees may apply if you choose a care home that charges more than your council’s standard rate, though you can request a review or explore alternative accommodations.

Independent Financial Advice

Care funding can be complex, and the right independent financial advice can help you clearly understand different fees, what you need to pay, and how your money will be assessed. An independent adviser can explain capital rules, lifetime cap proposals, and how care home funding works if your circumstances vary depending on health or family member involvement.

Personal advice is especially useful if you have complex assets, low income, or multiple care needs.

How Careline Home Support Can Help

At Careline Home Support, we help families understand how paying for care works and explore the most suitable support options — without the stress of moving into a care home. Our experienced teams offer personalised guidance, flexible care packages, and compassionate support for loved ones.

Whether you need help navigating the financial assessment, understanding council processes, or arranging home support, we’re here to help you choose care that’s right for you and your family.