The current situation for anyone entering a residential care home is that if they have between £14,250 (lower limit) and £23,250 in capital and savings (upper limit), their local council will contribute towards their care costs. (Note that ‘capital and savings’ includes the value of the person’s home, if it is owned on a freehold or leasehold basis).
If they have capital and savings in excess of the upper limit they will have to fund all of their social care needs, until the upper limit is reached. This means that their home may have to be sold and the proceeds used to fund their care needs. If they are below the lower limit their council will fund the care fees in full.
That situation was due to change in April 2016, when upper and lower limits were to be increased to £17,000 and £118,000 respectively. Anyone with assets between those two figures would be entitled to some financial support on a sliding scale. Further, a cap of £72,000 was to have been introduced, meaning that no one would have to spend more than that figure once they had spent up to that sum.
All of these proposed changes have now been postponed until 2020 at least. The situation, therefore, remains as described in paragraph one above.