If you or a loved one needs care at home, understanding how a financial assessment (means test) works is essential. Your local council will assess your income and savings to decide whether you qualify for financial support and how much you’ll need to contribute.
This guide explains everything you need to know about the financial assessment for home care in the UK, including capital limits, what’s included in the means test, and what happens next.
Page contents
- What is a financial assessment for home care?
- What does a financial assessment involve?
- What does the means test for home care involve?
- What documents do you need for a financial assessment?
- How much will you have to pay for your care?
- How much will you have to pay?
- What happens after the financial assessment?
- What if you are unhappy with the financial assessment?
- FAQs
Page contents
- What is a financial assessment for home care?
- What does a financial assessment involve?
- What does the means test for home care involve?
- What documents do you need for a financial assessment?
- How much will you have to pay for your care?
- How much will you have to pay?
- What happens after the financial assessment?
- What if you are unhappy with the financial assessment?
- FAQs
What is a financial assessment for home care?
A financial assessment, also known as a means test, is used by your local council to determine:
- Whether you qualify for financial help with home care costs
- How much you must contribute toward your care
If care is arranged privately, no assessment is required. However, if your local authority arranges your care, they must assess your finances.
The assessment usually happens after (or alongside) a care needs assessment, which determines what type of care you require.
What does a financial assessment involve?
The financial assessment looks at your:
- Income
- Savings and capital
- Pensions
- Benefits
- Investments
Key rules to know
Your personal possessions and life insurance policies are not counted.
The more income and capital you have, the more you may need to contribute.
If you receive care at home (not in a care home), the value of your home is not included as long as you continue living there.
What does the means test for home care involve?
To calculate how much you will have to contribute towards your care, the financial assessment looks at:
- Earnings
- Pensions
- Benefits
- Savings
If you receive home care, you may be entitled to a variety of benefits. Some types of income, such as payments from the mobility part of Disability Living Allowance, will not be considered.
It’s important that you understand the support you’re entitled to because the assessment officer will assume you are receiving the benefits you are eligible for even if you are not currently claiming them.
If you receive income as part of a couple, only your share will be taken into account. The assessment will also ignore the value of your possessions and any life insurance policies.
If you try to reduce your wealth on purpose to avoid paying for care, known as deprivation of assets, your council may refuse to provide any type of financial support.
What documents do you need for a financial assessment?
To make the assessment as smooth as possible and to ensure that you receive the correct amount of support you are entitled to, make sure you have all the information at hand when the financial offer visits.
- Details of savings in bank accounts, building societies, premium bonds and individual savings accounts (ISAs)
- Any stocks and shares that you own
- Any disability-related expenses
How much will you have to pay for your care?
As well as your personal assets, how much you pay towards your care will also depend on the capital limits in the country you live in. Capital limits are a set amount of money that you can have before you are required to contribute towards the cost of your care.
How much will you have to pay?
How much you contribute depends on your assets and the capital limits in your part of the UK. These thresholds vary by region:
England
- Over £23,250: You pay the full cost of care
- £14,250–£23,250: You contribute part of the cost
- Below £14,250: Only your income is considered; the council pays the rest
Wales
- Upper capital limit: £24,000
- Regardless of savings, councils can charge no more than £100/week for home care.
- Below £24,000: Only income is assessed
Scotland
- Personal and nursing care is free for those assessed as needing it—regardless of income or savings.
- Each local authority sets its own charging policy for other care costs.
- COSLA guidelines:
- First £10,000 of capital is disregarded (over state pension age)
- First £6,000 is disregarded (under state pension age)
- A tariff income may be assumed for savings above these thresholds
Northern Ireland
- Each Health and Social Care Trust determines eligibility and contribution levels.
- Contact your local Trust for details:
- Belfast, Northern, South Eastern, Southern, or Western HSC Trust
For more detailed information on how to pay for home care costs, read our guide to paying for care at home.
What happens after the financial assessment?
Following the means test, your council will provide you with written records of their assessment and decision about how much you need to contribute.
If you qualify for financial support, your local authority will provide you with a personal budget. This is money you can spend on care costs.
You can either receive money through direct payments into your bank account each month. Or the council will organise the care for you, which they will then bill you for.
If the financial assessment shows that you do not qualify for help with home care costs, you must pay for all the costs yourself.
Contact the council if you have any questions about the assessment.
What if you are unhappy with the financial assessment?
You should contact the council first, if you disagree with the results of the means test and think that you do qualify for support or that you should pay less than the assessment shows.
If you want to take it further, get in touch with your local social care ombudsman.
FAQs
What is the financial assessment for care (means test)?
Your local authority conducts a financial assessment to determine how much you should contribute towards your care costs. Also known as a means test, it looks at your income and capital, such as savings and pensions, to see how much money you have. The value of your home will not be included if you receive home care.
What is included in the means test for home care?
The Financial Assessment Officer from your local council will look at your earnings, pensions, certain benefits and your savings. The officer assumes that you are receiving all benefits that you are entitled to even if you are not claiming them. The assessment ignores the value of your possessions and life insurance policies.
What do I need for the financial assessment?
Make sure you have the following information available when the financial officer visits you: Details of savings in bank accounts (including building societies, premium bonds and individual savings accounts), any stock and shares that you own and any disability-related expenses.
How much will I have to pay for home care?
How much you will have to contribute depends on where you live in the UK as the countries have different capital limits and different ways to work it out. The less money you have, the less you will generally pay. In England, the upper limit is £23,250, in Wales, it is £24,000, in Scotland the first £10,000 should be ignored if you are over state pension age and the first £6,000 if below, and in Northern Ireland it varies between each local Health and Social Care Trust.
What happens after the financial assessment?
After the means test, your local authority will provide you with written records of their decision and how much you must pay for social care. If you qualify for support, you will be given a personal budget, which is money you can spend on care costs. If you do not qualify, you must cover all the home care costs yourself.
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