The financial assessment for care explained

If you’re looking into arranging help at home or moving into a care home, then you probably have questions about how you're going to pay for it. The financial assessment is used to work out how your care will be paid for.

How does paying for care work?

Social care services are usually not provided free of charge. You may need to pay some, or all, of the cost of the care services you need. You may be entitled to help with the cost of care services from your local council, following a financial assessment (sometimes called a 'means test').

To get help from your local council, you must first ask them for a care needs assessment. This is because they first need to find out whether you meet the national criteria that decide who's eligible for care and support – this is known as having 'eligible needs'. If you do, they'll then look at whether you're entitled to help with care costs under the financial assessment.

Find out more about the care needs assessment

The financial assessment works out how much you'll need to contribute towards the cost of the care services the council assess you as needing.

What does the financial assessment involve?

The financial assessment looks at your income, such as pensions and benefits, and your 'capital', such as savings, to work out whether you're entitled to help with care costs. If you are, the financial assessment also works out how much you may need to contribute towards the cost of the care services the council assess you as needing.

There are different financial assessment rules depending on whether you need care services in your own home, in the community, or in a care home. For example:

• If you need care to stay living at home, or a short-term or temporary stay in a care home, the assessment won't include the value of the property you live in. 
• If you need to move permanently into residential care, the assessment may include the value of your property. However, in certain circumstances your property will be ignored, for example if your partner still lives there.

How will my income be treated in the financial assessment?

Certain types of income, such as money from certain disability benefits, may not be counted in the financial assessment. All other income can be taken into account.

Make sure you get all of your benefits and entitlements. That’s because the assessment will assume you're receiving all the benefits you're entitled to, even if you aren't already claiming them.

If you and someone else jointly hold capital, such as a joint savings account, you'll usually be treated as having half of the money.

Will I have to sell my home to pay for care?

If you need care services at home, or short-term or temporary care in a care home, the property you live in won't be included in the financial assessment.

If you need permanent care in a care home, your property may be included in the financial assessment.

Find out more about how your property will be valued in the financial assessment

What if I give away some of my money?

You may think about giving away some of your savings, income or property to avoid paying likely care costs.

If the council thinks that you've done this to avoid paying care fees, they may still assess you as if you still had the money or property that you've given away. This is referred to as deprivation of assets. 

Find out more about deprivation of assets

How much will I have to pay?

After the financial assessment the local council should give you a written record of their decision of what you'll have to pay and what they'll pay, and how they calculated this.

How much you'll have to pay will depend on:

• what type of care and support you need
• your own personal circumstances.

If you’re going into a care home, you should not be left with less than £30.15 a week after any contribution to your fees. This is known as your Personal Expenses Allowance.

If you’re getting some aids or home adaptations, paying for these depends on what type of adaptations or equipment you need. If the council agree you need aids, equipment or a minor home adaptation, it must provide this for free.