Fred is a widower from Birmingham, and needs to move into a care home for a year after a fall. The care home costs £30,000 a year.
He has an income of £172 per week, made up of the state pension plus benefits. His flat is worth £80,000.
In the current system, Fred pays £30,000 for all of his fees since he has assets of more than the capital limit.
In the reformed system, the local authority helps Fred with his costs, contributing £11,000. Fred pays £19,000 to the care home, less than the current system because of the increase in the upper capital limit to £123,000.
Fred therefore benefits from the increased capital limit and the assurance that he won’t have unlimited care costs.
Find out more about how the care and support funding reforms will work.