I apologise if I am wrong but I thought that in Wales there is only the £24,000 limit and below this, no further capital is taken towards the cost of care home fees. That is, the £14,250 is n't involved.
Scarlett, I think you have a generous LA. Even the £525 is way over what our LA paid.
I think I may not have explained this properly,
, for which I apologise. My LA has a ceiling of £525 that they will pay for a place in a Care Home. There are no council Homes left in the Borough, so they have contracts with private Homes.
So if Mr XYZ needs to go into care, owns his own home and is married, but has less than £14000 ish of savings in his name, or £28000 in a joint account, the LA pick up the bill.
From the £525, they will charge Mr XYZ his state pension, and half his private pension, if he has one. After 4 weeks his AA or DLA will cease. So if he gets, say, £140 in SRP a week, and £100 private pension a week, he will have to pay £140 plus £50 (half his private pension) = £190, less his PEA (£24), so £166 a week towards this. Plus he's "lost" £85 ish AA or DLA.
Now if Mr ABC has paid for decades into a good private pension, perhaps with a final salary scheme, he may have had £300 a week, and he has to pass over £150, plus his SRP. It may be that my LA's starting figure seems generous, in comparison to yours, because we are in London. Where are you, and what does your LA pay as its starting figure?
Incidentally, when I first did a Care Home Crawl, a year before John needed to go to one, I found what was my dream choice, but the fees are £1350 a week! This was in a nice, but nothing special, area, where a friend has just sold her 3 bed semi, with loft conversion, for £525000. Someone self funding, on their own, may think they're rolling in it, but their annual fees would be about £70000, and with dire interest rates, even though they would retain their SRP and AA, if they received it, their "pot" would last less than 10 years.
It's frightening, isn't it.