The Abbeyfied Societies in Scotland Limited
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Arrangements for Care Home Provision in Scotland

The National Care Home Contract (NCHC) covers all care and nursing home providers in Scotland. It has been in existence since 2003 as a means of ensuring agreed standards are applied nationally and providers are guaranteed a standard rate paid for state funded residents.

Small additional sums are added for providers where their grades are set, by the Care Inspectorate, at the higher levels as quality payments. Reductions in the rates can also be made where providers fail to meet contract requirements. The NCHC is negotiated and agreed annually between providers representatives, principally the Scottish Care organisation, and the Confederation of Scottish Local Authorities (COSLA) which acts on behalf of the individual authorities as a negotiating body.


Local council support with care home fees isn't available if you have capital above the upper limit.

What's meant by capital

Capital includes:

  • property, there are some circumstances where property will be disregarded from the financial assessment
  • money held in bank or building society accounts
  • stocks and shares
  • National Savings Certificates
  • Premium Bonds
  • cash
  • trusts, the nature of the trust, as set out in the trust deed, will determine how it's taken into account in the financial assessment
  • land


The capital limits applicable from 1st April 2021 are £18000.00 for the lower limit and £28750.00 for the upper limit.

(From 1st April 2020 to 31st March 2021 the lower limit was £18000.00 and the upper limit was £28500.00.)

If you're assessed as having capital above the upper capital limit, you won't get help from your local council with paying care home fees over and above any assessed entitlement to free personal and nursing care. This is called self-funded.

If you have capital below the lower limit, you'll get help with care home fees. This is known as publicly-funded.


If you have capital between the upper and lower limit, you'll be assessed as though you have an extra £1.00 a week income for every £250.00 or part of £250.00 between the lower and upper limit. This is called tariff income and applies at a rate of £1.00 for every £250.00 (or part of £250.00) on capital over the lower limit of £18000.00.