The short answer
- In England, with capital over £23,250 you pay your own fees.
- Between £14,250 and £23,250 the council helps, but you pay from income plus £1 a week for every £250 above £14,250.
- Below £14,250 only your income counts, and you keep at least £31.80 a week for personal expenses.
- Your home counts after 12 weeks, unless a partner or certain relatives still live there.
The capital limits
Capital includes savings, investments, shares, premium bonds and property other than a home that is disregarded. It does not include personal possessions or the surrender value of most life insurance. The limits in England have not changed since 2010.
| Capital | England | What happens |
|---|---|---|
| Over £23,250 | Self-funding | You pay the full fee |
| £14,250 to £23,250 | Council helps | Income plus tariff income, less the allowance |
| Under £14,250 | Council helps | Income only, less the allowance |
The cap on lifetime care costs that was planned for October 2025 was cancelled, so there is no limit on how much a self-funder can pay in England.
Tariff income
If your capital is between £14,250 and £23,250 in England, the council treats each £250, or part of £250, above £14,250 as £1 a week of income. It is not real income: it represents money you are expected to use from savings.
| Capital | Tariff income a week |
|---|---|
| £14,250 | £0 |
| £15,000 | £3 |
| £18,000 | £15 |
| £20,000 | £23 |
| £23,250 | £36 |
Tariff income only reduces savings slowly. In our example below, capital takes over 15 years to fall from £23,250 to close to £14,250.
How your income is used
If the council helps, most of your income goes towards the fees: State Pension, private pensions, Pension Credit and most benefits. You keep a personal expenses allowance of £31.80 a week in England for things like clothes, toiletries and hairdressing.
Some income is ignored, such as the mobility part of DLA or PIP and, if a spouse lives at home, half of a private pension can be passed to them. Attendance Allowance stops after 28 days if the council funds the place.
Worked examples
- Income less the £31.80 allowance£228.20
- Council pays up to its rate£771.80
- Top-up needed for the dearer home£300.00
- Tariff income on £5,750 above £14,250£23
- Income plus tariff, less allowance£251.20
- Council pays£748.80
- Fee£1,300
- Paid from income£260
- Paid from savings each week£1,040
Your home
The value of your home is counted as capital once you move into permanent care, unless it is still lived in by:
- your partner, former partner or civil partner (except if estranged);
- a relative aged 60 or over, or who is incapacitated;
- a child under 18 you are responsible for.
The council must also ignore the home for the first 12 weeks of permanent care, and while you are in a temporary or respite stay. It can choose to ignore it in other cases, for example where a carer has given up their own home.
With a £250,000 home counted, capital of £290,000 would last about 4.9 years at the same rate.
Deferred payment agreements
A deferred payment agreement lets the council pay your fees and secure the debt against your home. It is repaid when the home is sold, usually after your death. Councils in England must offer one if you have less than £23,250 apart from the home and the home is not disregarded. Interest and an administration fee are charged, so ask for the full cost in writing.
Renting out the home
Some families rent the home while a deferred payment agreement is in place. The rent counts as income towards the fees, so it can slow the build-up of the debt.
Top-up fees
If the council funds your place, it pays up to its usual rate for the type of care you need. If you choose a more expensive home, a third party, usually a relative, must sign an agreement to pay the difference. In limited cases, such as during the first 12 weeks or under a deferred payment agreement, you can pay the top-up yourself.
NHS-funded care
- Who
- Anyone in a nursing home assessed as needing a registered nurse
- Amount
- £267.68 a week in England
- Means test
- None
- Who
- People whose needs are primarily health needs
- Amount
- The whole fee
- Means test
- None
With a fee of £1,500 and nursing care, the NHS contribution of £267.68 reduces a self-funder’s cost to £1,232.32 a week. Always ask for a Continuing Healthcare checklist assessment if needs are complex or unpredictable.
Scotland, Wales and Northern Ireland
| Nation | Upper limit | Lower limit | Personal allowance a week |
|---|---|---|---|
| England | £23,250 | £14,250 | £31.80 |
| Scotland | £36,750 | £22,750 | £37.65 |
| Wales | £50,000 | — | £46.35 |
| Northern Ireland | £23,250 | £14,250 | £36.62 |
In Scotland, everyone assessed as needing personal care gets £260.30 a week towards it, plus £117.10 for nursing care, whatever their means. Wales has a single limit with no tariff income: below £50,000 the council helps and your savings are not used.
Giving money away
If you give away money or property to avoid care fees, the council can treat you as still having it. This is called deprivation of assets. There is no time limit: what matters is whether avoiding fees was a significant reason at the time. Normal spending, paying debts and gifts made long before care was foreseeable are not usually treated as deprivation.
Couples
Only the resident’s own capital and income are assessed. Joint savings are usually split equally. The partner’s own money is not counted, and the home is ignored while they live there. Couples should check how accounts and property are held.
Planning ahead
- Before careGet a needs assessment
Free from the council, whatever your means.
- Choosing a homeAsk the council's rate
So you know whether a top-up would be needed.
- First 12 weeksHome disregarded
Time to decide about selling or deferring.
- Nearing the limitAsk for a financial assessment
About three months before capital falls below the upper limit.
The needs assessment
Before any means test, the council carries out a needs assessment to decide what care you need and whether a care home is the right option. It is free for everyone, whatever their savings. Even self-funders benefit, because it identifies the type of care needed and can lead to NHS help or a deferred payment agreement.
If you are leaving hospital, ask about intermediate care or reablement, which is free for up to six weeks and may avoid the need for a permanent move.
The financial assessment
The council asks for details of income, savings and property, usually with bank statements for recent months. It then works out what you pay. You should get a written statement showing how it was calculated. Check every figure: mistakes in income or the treatment of joint accounts are common.
- Tell the council about disability-related costs and any money you owe.
- Make sure only your share of joint savings is counted.
- Ask for a review if your circumstances change.
What care homes cost
Fees vary by region and by the level of care. Residential homes provide personal care. Nursing homes also have registered nurses on duty and usually cost more. Self-funders often pay noticeably more than the council rate for the same room, partly because council rates are negotiated in bulk.
Ask every home for a written breakdown of what is included. Hairdressing, chiropody, outings, newspapers and phone calls are often extra, and some homes ask for a deposit or an advance payment.
Respite and temporary stays
For a temporary or respite stay, your home is ignored and the council may charge differently, sometimes a flat weekly amount. Carers can often get respite care through a carer’s assessment. Check how long a stay can last before it is treated as permanent.
Benefits in a care home
Pension Credit can continue in a care home and can rise because the home is no longer counted. If you pay your own fees, you can keep Attendance Allowance or the daily living part of PIP. If the council funds you, these usually stop after 28 days. Housing Benefit for the old home can continue for a short time during a move.
Challenging a decision
If you disagree with the council’s assessment, use its complaints procedure first. If that does not resolve it, you can go to the Local Government and Social Care Ombudsman, which is free. For NHS Continuing Healthcare decisions, ask the integrated care board for a review, then go to the Parliamentary and Health Service Ombudsman.
Care at home instead
For care at home, the council uses a similar means test, but your home is never counted. You keep a higher minimum income, and disability-related costs, such as extra heating or laundry, are allowed for. Many people can stay at home longer with a mix of paid carers, equipment, adaptations and family support.
A Disabled Facilities Grant from the council can pay for adaptations such as stair lifts and level-access showers. It is means-tested for adults, but not for children.
Choosing a care home
- Read the latest inspection report from the Care Quality Commission, or the equivalent regulator in Scotland, Wales or Northern Ireland.
- Visit more than once, including at a mealtime, and talk to residents and families.
- Ask how fees rise each year and what notice is given.
- Check whether the home accepts the council rate if your savings may run out.
Choosing a home that accepts council funding avoids having to move later, which can be distressing for residents.
If someone may lose the capacity to manage their money, a Lasting Power of Attorney made in good time avoids a court application. The power of attorney cost calculator shows the fees.