The financial assessment, or means test, works out what you’ll have to pay towards the cost of your care. It’s carried out by your local council after they complete your care needs assessment, which looks at what care needs you may have.

The financial assessment will consider:

• your income, including any pensions and benefits
• your capital, including savings.

The council can't charge anyone else, such as your partner or someone you live with. If you'll be getting care services at home, the value of your home (if you own it) is not included in the financial assessment. This is different to the rules about charging if you’re moving to a care home.

When looking at your income, the council will ignore the amounts you need to keep to cover:

• your housing costs – Council Tax, and your mortgage or rent
• any Disability Related Expenditure – this means regular costs related to a disability like the cost of specialist equipment
• your Minimum Income Guarantee – the amount the government thinks you need to keep for your daily living, such as food and bills, which should not be spent on home care.

The Minimum Income Guarantee is set by the English, Welsh or Scottish government. But, your council can choose to increase this. If you have high costs and you are struggling to cover them with the amount of income you are left with, you could ask the council to increase the Minimum Income Guarantee figure applied in your case. If they refuse, you could challenge this by making a complaint. 

Call our Helpline if you would like advice about this.

What you need to contribute towards the costs of your care is different depending on where you live in the UK.

In England

Most home care services will have a charge. If your capital is:

• more than £23,250 – you may have to pay for all the care you receive
• between £14,250 and £23,250 – you’re assumed to have £1 per week extra in your income for every £250 in capital between these limits
• less than £14,250 – you won’t have to use any of your capital to pay for your care, but you will probably have to contribute from your income.

If your weekly income is higher than your care costs, you’ll usually have to pay for all your care yourself – as long as doing so doesn’t take your income below the Minimum Income Guarantee amount set by the government. 

In Scotland

If you have been assessed as needing Personal or Nursing Care, it will be provided free of charge. Personal care covers things such as washing and dressing, eating and getting around your home.

However, the council may decide that you also need services that have a charge – for example, help with laundry, shopping or getting around outside your home. You will then be given a financial assessment to check how much you should be paying for any support you will receive. 

If you are over State Pension age, the council should disregard the first £10,000 of your savings. If you have more than £10,000 in savings, you’re assumed to have £1 per week extra in your income for each £500 over £10,000.

If you are below State Pension age, the first £6,000 should be disregarded. If you have more than £6,000 in savings, you’re assumed to have £1 per week extra in your income for each £250 over £6,000.

In Wales

Most home care services will have a charge. 

You may have to pay up to a maximum of £100 a week towards your care at home if:

• you have more than £24,000 in capital (not including the value of your home)
• you have a weekly income greater than the cost of your care at home.

The £100 limit just covers care costs and does not include services with a flat rate charge, such as meals on wheels.

Some services such as short-term help you might need to recover after an accident or illness may be provided free of charge.

In England, if your council assesses you as needing a particular aid or piece of equipment, the equipment will be free, and adaptations will be free if each one costs less than £1,000. 

In Scotland and Wales, what you pay towards any aids or adaptations you need will depend on your council’s charging policy.

In Scotland, nursing care is free. Nursing care is care that requires the skills of a qualified nurse. This can include care like managing sores and giving injections.

If the council thinks you’ve given away your assets to avoid paying for care, they may still count them in the financial assessment. For more information, visit our page Giving away your assets when you need to pay for care.

The charges you’re asked to pay shouldn’t put you in financial difficulty. If you’re struggling to pay, talk to your council. Their charge must be based on your individual circumstances, and they may not have considered all your costs and outgoings. They can’t suddenly stop providing your services without telling you in this type of situation.

Make sure you’re claiming all the benefits you’re entitled to, such as Pension Credit. You may also be able to get disability benefits, such as Attendance Allowance, Personal Independence Payment or Adult Disability Payment (Scotland only), to help you pay for your support services.

The council should give you the information about your financial assessment in writing, and your care and support plan if they are meeting your needs. If you’re not happy with the outcome of the financial assessment, you can ask them to review it. You may decide to do this because you:

• disagree with their assessment of your income or capital 
• think your Minimum Income Guarantee should be increased due to increased costs you’re experiencing
• don’t think the council allowed for all of your disability-related expenses.

If you’re still not satisfied, you could use the council’s complaints procedure to make a complaint. For more advice, call our Helpline.

If you qualify for support from the council following your care needs assessment, they must work with you to put a care and support plan in place. This applies even if the council will not be contributing towards the costs of your support. 

Your care and support plan should set out which services you will use to meet your needs. You can decide how this care is arranged – you might want to arrange it yourself, or you might want the council to do this. You may have to pay a fee if you want the council to arrange your services but they will not be paying towards the cost of them. If the council will be paying for some or all of your support services, you can choose to receive their contribution as direct payments, so you can organise your own care. 

If you’re paying for your own care at home, it can be helpful to get independent financial advice. Make sure you choose an adviser who has a specialist qualification in long-term care – a CF8 or CeLTCI qualification. There are various places you can search for an adviser, including the Society of Later Life Advisers and Unbiased. Advisers’ fees vary considerably, so ask up front how much it will cost.

See our factsheet Arranging home care for more information about ways to organise your care at home.