Financial Assessment (Care)
A financial assessment (or means test) is carried out by the local council after a care needs assessment establishes eligible needs. It determines how much a person must contribute to the cost of their care based on their capital and income. The current capital thresholds are £23,250 (above which individuals self-fund) and £14,250 (below which capital is largely disregarded).
A financial assessment (means test) by the local council determines how much a person must contribute to their care costs. For residential care in 2025/26, those with capital above £23,250 must fully self-fund; those between £14,250 and £23,250 receive partial council support (with a 'tariff income' of £1 per week for every £250 between the thresholds); those below £14,250 have capital broadly disregarded. Income (including most benefits) is taken into account, but a 'personal expenses allowance' (at least £30.15/week) must be left. For non-residential care, rules vary by council but savings above £23,250 typically mean full self-funding. The council must give written reasons for the assessment outcome. A common pitfall is failing to declare all exempt capital (e.g. the family home if a dependent relative lives there). You can challenge a financial assessment by requesting a review through the council's complaints procedure.