Paying for care in England, explained

This is where families are most often caught out. Who pays for care is a separate question from what care someone needs — and the rules have reliefs that are widely missed. Here is the plain-English shape of it, as a signpost to the official sources; it is not financial advice, and every figure below can change.

Nothing here is financial or care advice. Amounts are as at 2025/26and can change — always confirm the current figure with the council or GOV.UK before making a decision.

Two separate questions

What care is neededis decided by the council’s free needs assessment. Who pays is decided afterwards by a financial assessment(the means test). You can have the needs assessment whatever your finances — do not let worry about cost stop you asking.

The means test

For council help the financial assessment looks at capital (savings, investments and, in some cases, property) and income. Capital is compared to two limits. As at 2025/26 in England these have been, and have been frozen at, an upper limit of £23,250 and a lower limit of £14,250— but check the current figures on GOV.UK:

Above the upper limit— the person usually pays for their own care (“self-funding”).
Below the lower limit— capital is ignored; the council looks only at income.
In between— the council adds a “tariff income” (as at 2025/26, £1 a week for every £250 of capital) and the person contributes towards the cost.

What happens to your home

Care at home: the value of the home the person lives in is not counted.
A care home:the home’s value is usually disregarded while a partner, or certain other dependants, still live there. Otherwise it can be counted — but there is a 12-week property disregard at the start of a permanent stay, and a deferred payment agreement lets the council pay the fees and recover them later from the estate, so no one is forced to sell the house quickly.

Reliefs people miss

Personal Expenses Allowance — a care-home resident keeps a weekly amount for personal spending (as at 2025/26, £30.65) that the council cannot take.
Top-up fees— the council must offer at least one option that meets the needs at its rate; a third party can “top up” for a more expensive home, but the person themselves usually cannot top up from disregarded capital.
Section 117 aftercare— care that follows certain detentions under the Mental Health Act is free and not means-tested.
You can still use the council — even self-funders can ask the council to arrange the care, and are entitled to a needs assessment.

NHS Continuing Healthcare

If someone’s needs are primarily health needs, the NHS may fund all of their care through Continuing Healthcare (CHC)— it is not means-tested, it covers care at home or in a care home, and it is widely under-claimed because eligibility is complex and varies by area. It is worth asking about, and worth getting help with the assessment. Beacon gives free, independent CHC advice.

Where to get the current figures and free help

Your council— start here; find it via GOV.UK.
MoneyHelper: paying for care — the government-backed money guidance, with the current figures.
Age UK: paying for care — detailed, regularly updated guides and a free advice line.
Beacon — free independent advice on NHS Continuing Healthcare.

General information to help you navigate the choices, not financial or care advice, and not a statement of any individual’s entitlement. Figures are as at 2025/26 and change — confirm the current numbers with the council or GOV.UK. How a needs assessment works →