Key Points

• Hackney Council has officially abolished its £250 weekly limit on non-residential adult social care fees as of 7 September, transitioning to a system aligned with the national Care Act 2014 framework.
• The policy adjustment means residents with capital, savings, or investments exceeding the £23,250 statutory threshold will now be required to fund the complete cost of their at-home care services.
• Out of 274 respondents to the council’s public consultation held between July and October 2025, 180 opposed the removal of the cap, with 66 per cent of all participants identifying as adult social care users.
• One self-funding resident faces an increase in monthly care expenditure from £1,000 to approximately £3,000 as a direct consequence of the removal of the price ceiling.
• The local authority estimates that ending the £250 limit will claw back approximately £150,000 annually, contributing to a broader social care reform package aimed at recovering £416,000 per year.
• Social care demand in Hackney has surged by 40 per cent since 2019/20, with the borough projected to spend a net £123 million on adult social care in the 2026/27 financial year—representing nearly 29 per cent of its total net revenue budget.
• Further technical adjustments to the council’s care charging framework include measuring 100 per cent of residents’ assessable income (up from 75 per cent) and raising the percentage of billed service costs from 92 per cent to 100 per cent.
• The cabinet approved the reform package in December 2025 without publishing an updated Equalities Impact Assessment (EIA), relying instead on a draft from May 2025 where key sections detailing equality influences were left unpopulated.
• Choice in Hackney, the main Deaf and Disabled People’s Organisation in the borough, was not consulted during the public consultation process, and its Chief Executive Officer was unware of the policy change.
• Despite claims that the policy aligns Hackney with neighboring areas, nearby Tower Hamlets abolished non-residential homecare fees entirely from 1 April 2025, and Hammersmith & Fulham continues to offer free at-home care for eligible older and disabled residents.

Hackney (East London Times) September 30, 2026 — Hackney Council has formally implemented controversial alterations to its adult social care framework by ending its £250 per week cap on non-residential care charges, forcing self-funding disabled and elderly residents to face steep fee increases. As reported by the Local Democracy Reporting Service, the policy officially took effect on 7 September, sixteen months after being initially proposed under a previous Labour administration. The decision requires residents with capital or savings above the statutory threshold of £23,250 to meet the full, uncapped cost of their home support services, bringing the borough into line with minimum national criteria.

The structural change comes amidst growing friction regarding public engagement and local financial pressures. The reform package was advanced despite a public consultation showing majority opposition from care users and residents, alongside criticisms regarding incomplete equality evaluations and a lack of direct engagement with prominent local disabled advocacy groups.

Why did Hackney Council decide to remove the social care cap?

The local authority justified the removal of the £250 weekly upper limit by arguing that the longstanding cap was overly generous and created an uneven distribution of municipal resources. Under the Care Act 2014, individuals possessing savings, investments, or capital in excess of £23,250 are generally mandated to fund their own social care. By capping weekly non-residential charges at £250 for many years, Hackney Council had effectively subsidized care for higher-wealth individuals who fell outside standard statutory assistance criteria.

Municipal leaders maintained that removing the artificial limit establishes a fairer framework that concentrates financial resources on lower-income residents while matching the baseline practices of other local authorities. As reported by the Local Democracy Reporting Service, then-Cabinet Member Chris Kennedy explained during a May 2025 meeting:

“The poorest and most vulnerable 60 per cent of that 1.8 per cent pay absolutely nothing for their care, and this proposal does not propose that they pay anything for their care.” He further clarified:

“It is our wealthier residents, and it’s the wealthier 40 per cent of residents who are Care Act eligible, who are affected by everything that we are proposing to consult on.”

The financial pressures driving the decision stem from rapid demand growth and budgetary deficits across the local authority’s care departments. Adult social care demand across the borough has escalated by 40 per cent since the 2019/20 financial cycle. According to official council documentation, Hackney is forecast to allocate a net total of £123 million to adult social care services in the 2026/27 financial year, representing nearly 29 per cent of its overall net revenue budget. Removing the £250 threshold is projected to recover approximately £150,000 annually, while the broader suite of care charging adjustments is expected to claw back a total of £416,000 per year.

As reported by the Local Democracy Reporting Service, official council reports indicated that removing the cap “will only impact our 139 self funders who are recorded as able to afford the maximum cost of care,” a group representing roughly 4 per cent of the borough’s overall care user base. Hackney Council maintains that 60 per cent of residents receiving domiciliary care pay nothing towards their provision, with the remaining 40 per cent assessed as having the financial means to contribute.

However, data sampling highlighted in reporting by the Local Democracy Reporting Service shows that out of 1,089 care users whose financial records were held by the council, 373 were classed as paying a “nil charge” (approximately 34 per cent). This sample excluded around 1,900 care users whose records were either missing following a major cyber attack in 2020 or who had not submitted financial assessment forms, leaving the precise empirical derivation of the council’s 60 per cent figure unverified.

How have care users and advocacy groups responded to the rising charges?

Public feedback collected during the official consultation period—held between July and October 2025—demonstrated widespread resistance to the proposed charging structure. A total of 274 individuals answered the consultation question regarding the weekly cap, with 180 respondents (66 per cent) voting against its abolition. Adult social care users constituted 173 of the total consultation participants. Many respondents cited reliance on fixed welfare benefits or low fixed incomes, expressing concern over their ability to absorb additional living costs.

Residents holding savings or assets above the £23,250 threshold argued that requiring larger payments for already costly essential care was fundamentally inequitable. As reported by the Local Democracy Reporting Service, one affected self-funding disabled resident explained that his monthly care costs are projected to triple, rising from £1,000 to approximately £3,000 per month. The resident, who requested anonymity, noted that many individuals in similar circumstances will “suddenly have to find £2,000 a month in cash or whittle down their savings until they no longer have £23,000 left of any sort of assets.”

Case studies compiled within the council’s own consultation materials further illustrated the magnitude of potential cost increases. In one example, an 85-year-old bed-bound female resident receiving home care was projected to see her weekly charges rise by 25 per cent, climbing to £429 per week following the lifting of the cap.

Engagement with prominent community organizations also generated scrutiny. As reported by the Local Democracy Reporting Service, Choice in Hackney, the borough’s primary Deaf and Disabled People’s Organisation, was not included as a formal consultee, and its Chief Executive Officer had no prior knowledge that the cap was being removed. Furthermore, Age UK did not confirm whether it participated in the consultation process. Official council records show that only two unnamed voluntary or community organizations submitted responses to the public exercise.

Responding to the developments, a spokesperson for Age UK stated:

“At a time when many older people are facing growing financial pressures, it is vital that residents have access to clear information, advice and advocacy so they can access the support they are entitled to and make informed choices about the care and treatment they receive.”

The charity spokesperson added:

“Many people in Hackney are entitled to benefits, grants and other forms of financial support that they are not currently claiming, including disability-related benefits, attendance allowance and Pension Credit.”

What administrative and procedural issues surrounded the decision?

The regulatory pathway leading to the implementation of the policy was marked by procedural gaps and delayed timelines. The overall policy package was formally approved by Hackney Council’s Cabinet in December 2025 without a finalized Equalities Impact Assessment (EIA) attached to the executive decision papers.

The sole publicly accessible EIA associated with the policy change was a draft version appended to a May 2025 cabinet report. Within that document, key sections designated to detail how equality considerations had actively shaped or altered the policy were left unpopulated. Rather than appending an updated analysis, the final December 2025 cabinet report cross-referenced the earlier May draft. Although the local authority asserts that a completed EIA review exists and is accessible “upon request,” reporting by the Local Democracy Reporting Service confirmed that the document had not been provided upon inquiry.

Political transitions also coincided with the policy’s implementation schedule. Initial proposals were introduced to Cabinet in May 2025 by former Labour Cabinet Member Chris Kennedy and received final Cabinet approval in December 2025. Council officers originally recommended an effective start date of April 2026 to align with the commencement of the new financial year, approximately one month prior to local elections in which a new Green administration was elected to lead the council.

The policy was ultimately brought into force on 7 September 2026 under the Green administration. Following inquiries from the Local Democracy Reporting Service, the council updated its public website on Friday, 18 September to display details regarding the consultation outcomes and operational steps.

In addition to lifting the £250 threshold, the council executed broader technical revisions to its care charging policy. The council now assesses 100 per cent of residents’ assessable income—an increase from the previous 75 per cent standard—and bills service users for 100 per cent of care delivery costs, up from 92 per cent. However, following strong opposition during the consultation phase, the council withdrew additional proposals that would have reduced the proportion of disability benefits disregarded from income calculations.

A spokesperson for Hackney Council defended the decision, stating:

“Despite the huge pressures all councils face in funding social care, in Hackney we are clear that those on the lowest incomes do not have to pay for their care, while those who are asked to contribute only do so based on a fair and transparent affordability assessment.”

The spokesperson added:

“The changes to our care charging policy have been made carefully and transparently, and bring Hackney in line with other local authorities and national guidance.”

The council further clarified that the Care Charging Team conducts individual financial assessments prior to adjusting any resident’s invoice to verify affordability. Officials stated that all affected residents were notified in writing prior to 7 September, with the majority of new charges scheduled to be invoiced starting in November 2026. For residents experiencing broader hardship, the council highlighted the availability of the Hackney Crisis and Resilience Fund to assist with fundamental living necessities such as food, housing, and utilities.

How do Hackney’s care charges compare with neighboring London boroughs?

When presenting the policy to cabinet colleagues in December 2025, former Cabinet Member Chris Kennedy argued that abolishing the cap would align Hackney with nearby municipal jurisdictions. As reported by the Local Democracy Reporting Service, Kennedy stated that the move would “bring us in line with the vast majority of other local authorities so that what happens here is exactly the same as what happens over the border in Islington or over the border in Tower Hamlets.”

However, comparative data across neighboring local authorities reveals diverging strategies regarding non-residential care fees:

• Tower Hamlets: Abolished all non-residential homecare charges entirely as of 1 April 2025, establishing universal, free homecare services for eligible residents regardless of personal income or wealth.
• Hammersmith & Fulham: Continues a long-standing policy of providing free non-residential care services at the point of delivery for eligible elderly and disabled residents.
• Newham Council: Previously maintained a £400 weekly maximum cap on non-residential care charges, but voted in December 2024 to scrap the limit, taking effect in January 2025.
• Hackney Council: Operates under a full cost-recovery framework aligned with national Care Act baselines, assessing 100 per cent of assessable income and applying no upper ceiling on weekly fee totals for residents possessing capital over £23,250.

The divergence in local charging models occurs within a borough characterized by significant socio-economic deprivation among older demographics. Data from the government’s English Indices of Deprivation 2025 indicates that 54.7 per cent of Hackney residents aged 60 and over live in income-deprived households. This represents the second-highest rate of elderly income deprivation among all local authorities in England, surpassed only by neighboring Tower Hamlets at 61.1 per cent.

Background of the care charging reform

The statutory framework governing adult social care in England is defined by the Care Act 2014, which created a unified legal structure for how local authorities assess eligibility and calculate financial contributions for care services. Under the Act, councils are legally permitted to charge service users for non-residential care, provided the financial assessment leaves the resident with a basic level of income known as the Minimum Income Guarantee (MIG). The legislation establishes national capital thresholds: individuals with assets or savings above £23,250 are classed as self-funders and expected to pay the full cost of their care, while those with assets below £14,250 receive maximum statutory financial assistance, subject to income testing.

Historically, local authorities possessed the discretionary power to offer more generous terms than the national baseline. Hackney Council chosen to implement an upper limit of £250 per week on non-residential social care services, effectively capping out-of-pocket costs for residents regardless of whether their total assessed care package exceeded that amount or whether their capital surpassed the £23,250 limit.

Over the past decade, rising systemic demand, population aging, higher operational costs, and real-term reductions in central government funding led to structural deficits in local authority social care budgets across England. To manage these pressures, local councils have increasingly adjusted discretionary policies, moving away from local subsidies and aligning their charging frameworks strictly with the national statutory baseline. Hackney Council’s initial proposal to lift the cap in May 2025 emerged directly from these overarching budgetary constraints, culminating in the formal policy enactment in September 2026.

Explore More Hackney Council News

Hackney Council Launches Landlord Enforcement Drive Following £30,000 Fine Hackney 2026

Hackney Council Receives Planning Applications For Local Properties Hackney 2026

Prediction: How will this development affect social care users and self-funders in Hackney?

The abolition of the £250 weekly cap and the adoption of 100 per cent assessable income calculations will primary affect two specific cohorts within the borough: self-funding residents with assets above £23,250 and middle-income care recipients who previously benefited from local fee limits.

For self-funding disabled and elderly residents, the immediate impact will be a substantial increase in out-of-pocket expenditure. Individuals requiring comprehensive or high-dependency domiciliary care packages—such as multiple daily visits or overnight care—will no longer have their weekly exposure limited to £250. As demonstrated by individual cases where monthly bills are set to triple from £1,000 to £3,000, self-funders face rapid capital depletion. This financial acceleration means affected individuals will spend down their life savings and liquid assets at a significantly faster rate until they hit the £23,250 threshold, at which point they will re-enter the statutory safety net for council-assisted funding.

For broader social care users across Hackney, the removal of the cap, combined with billing 100 per cent of service costs and assessing 100 per cent of assessable income, creates heightened financial exposure during a period of sustained high living costs. Given that over 54 per cent of older residents in Hackney reside in income-deprived households, even minor upward adjustments in net contributions reduce disposable household income. While the council maintains that the lowest-income care recipients remain protected via the Minimum Income Guarantee and financial assessments, advocacy groups anticipate an increased demand for independent debt advice, benefit checks, and local hardship relief through the Hackney Crisis and Resilience Fund as full billing commences in November 2026.