Paying for care in England

Paying for care is means tested. If you do not qualify for free care under HNS Continuing Care and need care in a care home, your Local Authority has a duty to financially assess you to see whether you need to pay for your own care or not - the so called Means Test.

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Current Means Testing for Long Term Care in England

Local Authorities in England will only pay for care is they agree you need the care, and your savings and investments are less than currently £23,250 (2025-6).

Assets included in this means test, not only includes the value of; ordinary savings accounts, ISA’s, shares, premium bonds, national savings but also any investment properties you personally own, it will also include 50% of any jointly held assets and if the person needing care is single, widowed or divorced and care is needed in a care home, it will also normally include the value of the main residence although if still married and their spouse, civil partner or if not married a long-term partner, or a relative who is over 60 or a dependent child under 18 will remain living at home, the value of this will be excluded.

It is hardly surprising therefore, that many people have to pay for their own care.

This is when professional long term care advice becomes invaluable in helping you ensure you will be able to continue funding your chosen care.

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Tariff Income

If your capital falls in between the upper and lower capital thresholds (£23,250 & £14,250 - 2025-6), any capital greater than £14,250 gets converted into additional “notional or tariff income” at the arbitrary rate of £1 per week additional income, for every £250 of capital greater than £14,250.

This is then added to any actual income received (including most benefits, or any which you could be entitled to if you claimed them), but excluding:-

a) your Personal Expenses Allowance (currently, £30.65 per week 2025-25)
b) 50% of any private pensions you receive if you are married or have a partner who needs some of your pension to continue meeting living costs).  

The resulting assessable income is then compared to the actual cost of care. If your combined weekly income figure exceeds the cost of care, once again you would still need to pay for your own care, at least until your capital reduced to such a level as your total assessable income didn't meet the cost of care. 

If your total assessable income is less than the amount it would cost your Local Authority to provide or buy the care you have been assessed as needing, the local authority funds the difference. Please remember, however, that this maximum rate may still not be sufficient to meet the full cost of your chosen care and it doesn’t mean it’s free, you would still be expected to pay them all of your income except the Personal Expenses Allowance and 50% of any private pension providing our Spouse, Civil Partner or Partner needs it and it is paid to them.

If the care you want, or are currently receiving, costs more than your Local Authority is willing to pay and your current care provider will not accept anything less, unless your family would be willing to pay a third party top up, you may have no alternative but to move to whatever care your local authority can find.

To avoid this, you may wish to look at how much a care fees annuity might cost.