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What is Minimum Income Amount (MIA)?
The Minimum Income Amount (MIA) ensures people receiving council-funded residential or nursing care are left with a basic level of income each week for their personal use.
It operates in a similar way to the Personal Expenses Allowance (PEA) used in other parts of the UK. However in Wales it is called the Minimum Income Amount.
Why does MIA matter?
When a local authority arranges and funds someone’s care in a care home in Wales, they assess the person’s finances through a means-tested financial assessment. As part of this process, the authority must ensure that the individual has enough income left over each week after contributing towards their care costs to cover everyday personal expenses.
This means they will still have enough money to buy personal items. This include items such as toiletries, clothes or to pay for phone bills, or social activities.
This weekly amount that must be protected is the Minimum Income Amount.
How much is Minimum Income Amount?
For the current care funding year, the Minimum Income Amount in Wales is set by the Welsh Government at £44.65 per week.
This means that no matter how much someone’s care costs, after a financial assessment and after their contribution is calculated, the council must not reduce their income below this amount each week.
Who is entitled to MIA?
The Minimum Income Amount applies to people in Wales whose care costs are being paid for (fully or partially) by their local authority and who are:
- Living in a care home with their care arranged through the council
- Assessed as needing care through a needs and financial assessment
In Wales, the term Minimum Income Amount specifically refers to the protected weekly income for care home residents under local authority support.
It ensures that individuals are not left without money for essential and personal living costs while their care is being funded.
What does MIA cover – can you spend it on what you want?
Yes – you can spend the Minimum Income Amount as you wish. There are no strict rules saying what you should spend it on.
The local authority nor the care home cannot force you to spend it on your care. It must be excluded from the income used to calculate your care contributions.
Typical personal expenses might include:
- Haircuts and grooming
- Outings and treats
- Clothes and personal items
- Phone, internet, or TV subscriptions
- Transport and social activities
This flexibility is intentional. It gives people dignity and control over at least a small portion of their income while their care costs are met.
Does the Minimum Income Amount change?
Yes – the Welsh Government reviews and updates the MIA rate periodically. This may reflect inflation, policy changes, or adjustments to social care funding rules. Councils must follow the current rate when calculating financial assessments.
Local authorities can also make discretionary adjustments in individual cases.
FAQs
What is the Minimum Income Amount (MIA)?
The Minimum Income Amount (MIA) is the weekly amount of income that must be protected for someone receiving council-funded residential or nursing care in Wales, so they still have money for personal use.
Is MIA the same as the Personal Expenses Allowance (PEA)?
It works in a similar way. In other parts of the UK it’s often called the Personal Expenses Allowance (PEA), but in Wales it’s called the Minimum Income Amount (MIA).
What can you spend MIA on?
Typical personal expenses include toiletries, clothes, haircuts and grooming, phone or TV subscriptions, outings, transport, and social activities.
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