Financial assessment for care at home | Means test guide 2026

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.

At a glance

• Assessments will determine financial support: Councils use a means test covering income, savings, pensions, benefits and investments to decide whether you qualify for help and how much you should contribute.
• Your home is excluded: When you receive care at home and continue living in your property, its value is not included in the financial assessment.
• Charging rules vary across UK: England and Wales use capital thresholds for home care, Scotland provides assessed personal and nursing care free while other services may be charged for, and Northern Ireland’s Health and Social Care Trusts determine charging arrangements.
• Support follows the assessment: If you qualify for council funding, you may receive a personal budget through direct payments or council-arranged care, while you can challenge the decision if you believe the assessment is incorrect.

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.

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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:

• Income, including pensions and certain benefits
• Savings and other capital
• Investments

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 the council decides you deliberately gave away or reduced assets to avoid care charges, known as deprivation of assets, it may assess you as if you still owned those assets.

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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 officer 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

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How much will you have to pay for your care?

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: Your capital is not taken into account, although you may still have to contribute from your income depending on what the financial assessment shows.

Wales

• Upper capital limit: £24,000
• Regardless of savings, councils can charge no more than £100 a 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.

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.

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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.

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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