PEOPLE in Wales who are living in residential care will be able to keep more of their money from April next year.

The current level is £30,000, but from April, that will rise to £40,000, Welsh Government social care minister Huw Irranca-Davies has confirmed.

The move is part of a Welsh Government Programme for Government commitment to increase the capital limit used by councils which charge for residential care from £24,000 to £50,000 during the current Assembly term.

A phased approach is being used to increase the amount of money people can keep. The first increase in relation to residential care - to £30,000 from £24,000 - was brought in last April.

The capital limit is used to determine whether or not a person must pay for the full cost of their residential care, or whether they are eligible to receive financial support towards that cost from their council.

The Welsh Government's programme will have the effect of reducing the amount of people in residential care in Wales who have to pay the full cost.

Currently, there are up to 4,000 care home residents in Wales who have to pay for the full cost of their care.

Increasing the capital limit to £50,000 has the potential to benefit a significant number of these, depending upon the value of the capital they hold.

“The Welsh Government is committed to supporting older people, and those requiring care, to live the lives they want to lead," said Mr Irranca Davies.

“We promised to more than double the capital people can keep when in residential care, freeing up more of people’s money for them to use as they wish.

“We are now well on our way to delivering that pledge to the people of Wales.

"We know that well over 400 people are already benefiting from the increase in the limit, and we expect this to rise substantially when the limit is increased to £50,000."