See how we look at your finances and decide if you get help to pay your care home fees.
In a financial assessment we look at your money to work out what you can afford to pay towards your care. This page shows how. You might also find it useful to see
examples of other people’s assessments.
How it works: ignored and counted
When we look at how much money you have, there are some things we ignore and some things we count.
Ignored: you keep it
If we ignore something we do not expect you to use it to pay for care and we will not assess it.
Counted: we assess it
If we count something it means we'll take it into account when we work out how much you can afford to pay for care.
What we look at
We’ll look at:
- all of your
income (including pension and benefits)
- all of your
capital (savings and investments)
- if you're a
homeowner
The law says you must tell us your true financial situation or you could face legal action.
If you have any personal debt like credit cards or personal loans, we cannot take them into account.
Income (earnings, pensions and benefits)
Any earnings, pensions and benefits you get are classed as income. Some types are ignored in your assessment, and some are counted.
Ignored income types
We will ignore things like:
- earnings
- War Disability Pension
- War Widows Pension
- Working Tax Credit
- Disability Living Allowance (DLA) mobility component
- Personal Independence Payment (PIP) mobility component
- War Widows Supplementary Pension
- Guaranteed Income Payments from the Armed Forces Compensation Scheme
- Armed Forces Independence Payment for mobility
Counted income types
We will count:
- occupational pension or private pension
- State Pension
- Pension Credit
- Income Support
- Employment & Support Allowance (ESA)
- Severe Disablement Allowance
- Armed Forces Independence Payment
- Disability Living Allowance (DLA) care component
- Attendance Allowance (though if you qualify for help to pay you can only claim this for four weeks)
- Personal Independence Payment (PIP) daily living component
- Industrial Injuries Disablement Benefit
- Universal Credit
If you qualify for any of these benefits but choose not to claim them, we still have to include the money you would get if you did claim. It's important you claim the benefits you're entitled to. Check your eligibility using a
benefits calculator.
Income you can keep back (personal expenses allowance)
You’re allowed to keep a fixed amount of your income to use as spending money, instead of using it to pay for care. This is called a personal expenses allowance.
The government decides this amount every year. From April 2024 it is set at £30.15 per week.
Capital (savings and investments)
We look at your savings and investments, such as:
- bank or building society accounts
- property
- land
- national savings certificates
- premium bonds
- stocks and shares
- pre-paid funeral arrangements
Ignored capital: £14,250 or less
We will ignore your savings and investments if they are £14,250 or less.
Counted capital: over £14,250
If you have more than £23,250 in capital, you will not qualify for financial help and you will need to use it to pay for your care until it goes below £23,250.
If your capital is between £14,250 and £23,250, you may still qualify for help to pay but we'll take this money into account when we work out what you can afford to pay for care.
Homeowners
Ignored homes
If the only property you own is the home you lived in immediately before going into a care home, the value of it will be ignored if:
- you are only temporarily in a care home
- you are permanently moving to a care home but your partner still lives in your property
Sometimes there are other reasons we may ignore the value of your home, for example if certain relatives still live there. We will talk with you about this when we assess your finances.
Ignored for first 12 weeks
Most homeowners will have to pay for care themselves. But they may have the value of their home ignored for up to the first 12 weeks of their care.
You may qualify if:
- you have less than £23,250 in savings, investments and other property
- you are permanently moving into a care home
- you have not already been paying for care privately
You should use this time to decide how to pay for your care from week 13 onwards. For example, you might want to sell your property, or delay your payment with a
deferred payment agreement.
Counted homes
If your home is not ignored, we will count it at its current market value. But we will take off:
- the value of any mortgage or loans you have on it
- 10 percent of its value where there would be expenses to sell it
If you do not want to sell your home, we recommend you talk through your options with an independent financial advisor. One option is a loan called a
deferred payment agreement.
If you give away money or property
The law says you must not give away your money or property, or sell it for less than it is worth, if you think you're going to have care needs. If you do, it will still be counted in your assessment.
