The local authority carries out a financial assessment, also known as a means test, to determine whether you're able to pay for your own care or if you're eligible for financial assistance.
Here's a general breakdown of how it works:
If you have capital (including savings, investments, and property) over £23,250, you will usually be expected to pay your own care fees in full. This is sometimes referred to as being "self-funded."
If you have capital between £14,250 and £23,250, you're expected to contribute towards the cost of your care, but the local authority will also provide some assistance. Your contribution will be calculated based on your income and the amount of capital you have within this range.
If your capital is below £14,250, it will be disregarded from the means test. You will still contribute from your income, but you won't have to use your capital to pay for care.
When it comes to your home, it's usually disregarded from the means test if:
You're receiving care at home
You're in a care home on a temporary or short-term basis
A spouse or partner still lives there
A relative aged 60 or over lives there
A relative who is disabled or incapacitated lives there
A child under 16 who you're legally liable to support lives there
Please note, these figures and conditions apply to England. The rules in Scotland, Wales, and Northern Ireland are slightly different.
Also remember that financial situations can be complex and unique, and the rules around paying for care are also complicated. For the most accurate and relevant advice, it's always best to consult with a financial adviser or a legal professional who specializes in elderly care.
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