The council may help pay for care, but it depends on two checks. The first looks at the care your relative needs. The second looks at their money. This article is for England. Rules can differ in Scotland, Wales and Northern Ireland.
Can I ask the council to assess my relative’s needs?
Yes. The first step is a needs assessment. It is free, and anyone can ask for one.
To get any council help, you must ask for this assessment first. Ask by contacting the council’s adult social care team. Your relative’s savings do not come into this first step.
What happens in the needs assessment?
The council checks whether your relative has "eligible needs". These are needs that meet national rules.
The money check only starts once the council has found eligible needs. If it finds none, there is no financial assessment.
How does the financial assessment work?
The financial assessment is also called the means test. It is free. It decides how much your relative must pay towards their care.
There are three possible results:
- The council pays the maximum. Your relative may still pay a contribution.
- The council pays part. Your relative pays the rest.
- Your relative pays the full cost. This is called being a self-funder.
The more money a person has, the more they are expected to pay.
The council will ask about:
- earnings
- pensions
- benefits
- savings
- property
Possessions and life insurance policies do not need to be declared.
Some income, such as money from certain disability benefits, may not be counted. All other income can be. The council assumes your relative gets every benefit they are entitled to, even if they have not claimed it.
The council must reassess your relative’s finances regularly, usually once a year.
What savings and property count?
Savings are often called "capital". The upper limit in England is £23,250. Below this, the council may help pay. Ask your council for the current figure.
Being under the limit does not mean the council pays everything. The amount depends on your relative’s care needs and what they can afford.
Some other points to know:
- Savings in a joint account are usually treated as half belonging to each person.
- The home is not counted if your relative needs a paid carer at home, or a short stay in a care home.
- For permanent care home living, the home may be counted. It can be ignored in certain circumstances, for example if a partner still lives there.
If your relative lives in a care home, they should keep a minimum weekly amount after paying their contribution. It is called the Personal Expenses Allowance. Age UK gives this as £30.65 a week. Ask the council for the current amount.
What if your relative has more than the limit?
If your relative has more than the limit, they may need to pay the full cost. They can still ask for a needs assessment.
Some services are free whatever a person’s income, such as small equipment or adaptations costing under £1,000 each. This applies if the council has assessed your relative as needing them.
Giving money away
Do not give away money or property to avoid fees. The council may assess your relative as if they still had it. This is called deprivation of assets.
If the council thinks wealth was reduced on purpose, it might refuse any financial help.
Choosing a care home
In a care home, the council must offer at least one affordable choice. If your relative picks a dearer home, a relative or friend can pay a "top up fee".
If you disagree with the result
You can challenge the result of the financial assessment:
- Complain to the council first.
- If that does not settle it, go to the Local Government and Social Care Ombudsman. This is an independent body that looks into complaints about councils.
If your relative is living with dementia
- Ask a family member or friend to sit in on both assessments.
- Gather bank statements, pension letters and benefit letters before the meeting. This saves your relative from trying to remember details.
- If your relative cannot manage their money, ask about who can legally do it for them.
What to do next
- Ask the council for a free needs assessment. The NHS guide explains the first step.
- Collect details of income, savings and property, including joint accounts.
- Try our free care cost calculator for a personal estimate.
- Read our rights and benefits guide for benefits such as Attendance Allowance.
- For complex cases, call the Age UK Advice Line for free advice. You can also call the MoneyHelper helpline with questions about the financial assessment. You can also read Age UK’s guide.
This is general information, not legal or financial advice.