If the council decides someone needs care, it will do a financial assessment, sometimes called a means test, to work out how much they should pay towards it. This guide covers the main points for England. Always check the current rules with the council.

What is counted

The council looks at:

Savings and capital, such as bank and building society accounts, shares and premium bonds
Property, in some cases (see below)
Income, such as the State Pension, private pensions and most benefits

The savings limits

In England, if someone has more than £23,250 in savings and capital, they usually pay the full cost of their care. Between £14,250 and £23,250, they contribute from their savings as well as their income. Below £14,250, savings are not counted, but most income still is.

Property

For a permanent move into a care home, the value of the person’s home is usually counted. It is not counted if certain people still live there, such as a husband, wife or partner, or a relative who is over 60 or disabled. It is also not counted for the first 12 weeks of a permanent stay.

For care at home, or a temporary stay such as respite, the home is not counted.

What is left out

The council must leave the person with a weekly amount for personal spending, called the personal expenses allowance. Some income is not counted, such as some disability benefits.

Deliberately giving money away

If the council thinks someone gave away money or property to avoid paying for care, it can treat them as still having it. This is called deprivation of assets.

Couples

The assessment is based on the person’s own money, not their partner’s. Joint savings are usually treated as split equally.

If you disagree

Ask the council to explain its decision, and how to appeal. Age UK and Citizens Advice can help.

Read our overview of paying for a care home and Attendance Allowance.

The council’s financial assessment: what counts