Financial Assessment for Care Fees: What to Expect

Topic cluster: Care Home Costs & Funding | Reading time: 6 min

A financial assessment — sometimes called a means test — is the process your local council uses to work out how much, if anything, they will contribute towards your parent's care costs. Understanding how it works helps you prepare and avoid surprises.

When Does a Financial Assessment Happen?

A financial assessment follows a care needs assessment. Once the council has established that your parent needs care (and what type), they assess your parent's financial situation to determine their contribution.

Both assessments are free. The financial assessment does not replace or undermine the care needs assessment — your parent's needs must be met regardless of their financial situation.

What Is Assessed?

The financial assessment looks at your parent's income and capital.

Income:

State Pension
Private and workplace pensions
Most benefits (except Attendance Allowance, PIP, and DLA)
Rental income or earnings from employment
Any other regular income

Capital (savings and assets):

Current and savings accounts
ISAs, premium bonds, and investments
Shares and unit trusts
Property (under certain conditions — see below)

Your parent is assessed as an individual — a partner's income and savings are not included.

Does the House Count?

This depends on the type of care:

For care at home: The property value is not included in the financial assessment. Only savings and income are counted.

For a care home: The property value is usually included — unless an eligible person continues to live in the home. Eligible people include:

A spouse, civil partner, or unmarried partner
A relative aged 60 or over
A disabled relative
A divorced or estranged partner who is a lone parent
A dependent child under 16

If none of these apply, the value of your parent's home is counted, which frequently pushes the total above the threshold and results in self-funder status.

The 12-Week Property Disregard

For the first 12 weeks of a permanent care home placement, the property value is disregarded. This gives time to sell the property without your parent having to fund care entirely from liquid assets from day one. If the property is sold during these 12 weeks, the disregard ends on the date of sale.

UK Thresholds (2026/2027)

England:

Above £23,250 → self-funder
£14,250 – £23,250 → partial funding (tariff income: £1/week per £250 above lower threshold)
Below £14,250 → full council funding

Scotland:

Above £35,000 → self-funder
£21,500 – £35,000 → partial funding
Below £21,500 → full council funding
(Plus free personal care regardless of income for eligible residents)

Wales:

Above £50,000 → self-funder
Below £50,000 → full council funding (single threshold only)

Northern Ireland:

Above £23,250 → self-funder
£14,250 – £23,250 → partial funding
Below £14,250 → full council funding

How the Assessment Is Conducted

Contact your parent's local council — adult social care team — and request an assessment
A social worker or financial assessor meets with your parent (in person or by phone/video)
Your parent provides evidence of savings, income, and assets — bank statements, pension letters, and property ownership documents
The assessor calculates the total and compares it to the threshold
Your parent receives a written outcome explaining whether they will self-fund, receive partial funding, or qualify for full council support

If you believe the outcome is incorrect, you can ask for a review. The council must explain how they reached their decision.

What Happens After the Assessment?

Self-funder: Your parent pays care fees directly to the care home. They should still be told about Attendance Allowance, NHS Continuing Healthcare, and other potential support.

Partial funding: The council pays a portion; your parent contributes income and a tariff from savings above the lower threshold.

Full funding: The council arranges and pays for care. Your parent keeps a Personal Expenses Allowance (at least £31.80/week in England).

The council reviews your parent's financial situation regularly — usually annually — and will reassess if circumstances change significantly.

Getting Help Completing the Assessment

The financial assessment can feel daunting. Support is available:

The care home's admin team — often experienced in guiding families through the process
Citizens Advice — free, independent guidance on financial assessments
Age UK — helpline and local services for older people
An independent financial adviser — particularly useful if the picture is complex (property in trust, shared ownership, etc.)

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