What is a personal allowance for care fees?

If you or a loved one receives care and support that’s funded by the local authority, this little slice of money is what you’re allowed to keep each week. It’s not much but it’s yours.

What is your personal allowance?

When your local council is helping to fund your care, whether you’re in a residential home or nursing care, most of your income (pensions, benefits, etc.) goes towards paying for the care If everything was to be used for care how would you pay for the little things that are really important. This is why the government understands that you still need money for these items.

So they set aside a portion of your income that you are allowed to keep. That’s your Personal Expenses Allowance (PEA) in England.

In 2025/2026, the PEA amount is: £30.65 per week

It’s not a lot, but it’s meant to help you buy everyday personal items like:

• Toiletries

• Clothes

• Haircuts

• Magazines

• Birthday cards

• Treats (because who doesn’t need a bar of chocolate now and again?)

This money is yours. Not the care home's, not the council’s.

Who gets Personal Allowance?

You get a personal allowance if:

• You live in a care home

• Your care is partly or fully funded by the local authority

• Your finances are below the means-tested threshold for paying for your own care (currently £23,250 in England)

  
  

If you’re self-funding your care (i.e. paying from your own pocket), then you manage all your own money the personal allowance doesn’t apply in quite the same way.

What If I Have a Power of Attorney or Deputy?

If someone is acting as your attorney or deputy (perhaps because you can’t manage your own money), then they should make sure you still get access to your weekly personal allowance.

That money should be used for your benefit only not to top up care costs or cover extras for anyone else.

Common Problem: “The Care Home Keeps It!”

This shouldn't happen but can. When you pay for your care you should only pay for the care you receive either directly to the care home or the local authority if they are funding your care. You only need pay what you are billed for, nothing else.

Sometimes the care home will ask to keep personal allowances to cover incidental costs like hairdressing, chiropody, toiletries but you should make sure that your PEA is held in a separate account and only used for these things.

Care homes are not allowed to take your personal allowance to supplement your care costs. If you or your loved one isn’t seeing or using the PEA per week, it’s worth asking:

• Where is the money going?

• Who’s managing it?

• Is it being spent appropriately — and with your input?

It’s okay to ask for receipts or a breakdown of how it’s being used.

Can the Personal Allowance Be Increased?

In exceptional cases, yes. For example, if someone has religious or cultural needs that cost more (e.g. special dietary items or clothing), you can ask the local authority to provide for a higher personal allowance, but you’ll need to explain why, and it’s considered case by case.

We talk a lot about pounds and pennies when it comes to care fees. But personal allowance? That’s about dignity. It’s about still being able to choose your favourite shampoo. Or send your granddaughter a birthday card. Or buy the newspaper you’ve read every Sunday for 30 years. It's the little things that help us stay connected to who we are.

So, if you’re managing care for a loved one or navigating the system yourself don’t overlook this tiny pot of money. It may be small, but it makes a big difference.

If you need any help in navigating the care system please give us a call for 15 minutes of free advice which could make all the difference!