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2. Funding for Care

Help & advice

Concerned about how to fund the care of a loved one? Confused by the funding process? This category contains articles and advice on care funding.

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Local Authority Funding Entitlement

If you want to receive Local Authority help towards the cost of your care, you will face a financial assessment and means test, by your local authority.

How Local Authorities assess care funding entitlement for residential care

Your local authority will first want to know how much money and assets you have access to, as this helps it work out if you are in need of care funding assistance.

The means testing will look at most savings and assets held in your name, including:

  • Property and land
  • Bank and building society accounts
  • National savings and premium bonds
  • Stocks, shares and investment products
  • Income from state, personal and occupational pensions

If you have jointly held savings and assets, say with your spouse, their value will usually be divided by two to calculate your share.

Some of your assets will not be included in the means test, such as:

  • Surrender value of existing life policies
  • Some compensation payments held in trust or by the courts
  • Some investment bonds with a life assurance element
  • Property that continues to be inhabited by a partner, dependant or certain other parties

Some forms of income will also be disregarded from the means test, including:

  • War Widows special payments
  • The mobility component of the Disability Living Allowance
  • Within certain limits – spouse/partner payments from a private or occupational pension

How local authority assess care funding entitlements for homecare/domiciliary care

If your assets are more than the threshold of £23,250 (excl. the value of your home) the local authority will charge you the full cost of your care and if your assets fall below the threshold your situation will be reassessed. This may differ between councils as some have increased the threshold or set a maximum amount they expect anyone to pay for their care services; the Local Authority will not fund more than the cost of providing the same care in a care home.

Councils should cap charges for domiciliary care at £50 a week: this cap on charges does not include services that have a flat rate charge, such as 'meals on wheels'. Any services set at a flat rate charge that you receive will be charged separately to any capped charge for domiciliary care.

The means testing will look at most savings and assets held in your name, including:

  • Bank and building society accounts
  • National savings and premium bonds
  • Stocks, shares and investment products
  • Income from state, personal and occupational pensions

If you have jointly held savings and assets, say with your spouse, their value will usually be divided by two to calculate your share.

Some of your assets will not be included in the means test, such as:

  • Surrender value of existing life policies
  • Some compensation payments held in trust or by the courts
  • Some investment bonds with a life assurance element
  • Property that continues to be inhabited by a partner, dependant or certain other parties

Some forms of income will also be disregarded from the means test, including:

  • War Widows special payments
  • The mobility component of the Disability Living Allowance
  • Within certain limits – spouse/partner payments from a private or occupational pension

Who do I speak to about receiving care and Local Authority funding?

Your initial contact should be with the Adult Services department of your local authority, you can also contact your GP. After that, the Adult Services department will arrange for a medical and financial assessment to take place, and may consult with your doctor.