How much savings can I have before paying for care?
Short answer
£23,250 is the upper capital limit in England — above it you pay the full cost. Between £14,250 and £23,250 you contribute a tariff income from your capital, and below £14,250 only your income is assessed. Your home is ignored entirely for care at home.
After the care needs assessment finds eligible needs, a separate financial assessment decides what you pay. Capital drives it:
- Above £23,250 — you are a self-funder and meet the full cost.
- £14,250 to £23,250 — you contribute from income plus a tariff income calculated from your capital.
- Below £14,250 — capital is disregarded and only income is assessed.
What is left out of the calculation
For care at home, your main home is fully disregarded whatever it is worth — only savings and other assets count. That single point changes the picture for many families worried about the house.
For a permanent move into a care home, the property is disregarded for the first 12 weeks, and disregarded indefinitely where a qualifying person still lives there — a spouse or partner, a dependent child, or a relative aged 60 or over. Personal injury compensation held in a trust set up for that purpose is also disregarded, though a general discretionary trust is not.
Income, and the floor beneath it
Most income counts, including State, occupational and personal pensions. But the council must leave you a minimum: the Personal Expenses Allowance of £31.80 a week in residential care (England, 2026-27). No assessment may push you below that floor.
Moving into a council-funded care home also changes benefits. Attendance Allowance and the care component of PIP or DLA are affected, and the mobility component continues for 28 days before stopping unless you are a self-funder. Get a benefits check before the move rather than after.
If the figures look wrong
Ask for a written breakdown and a review — the common errors are capital valued incorrectly, income miscounted, and a disregard simply not applied. Provide evidence and ask for reasons in writing; escalate through the council’s complaints procedure and then to the Local Government and Social Care Ombudsman. Take advice before moving money or giving away assets to get under a threshold: that can be treated as deprivation of assets, and the council can assess you as though you still held it.
Related guides
Financial Assessment (Means Test) in Detail
After a care needs assessment finds eligible needs, the council carries out a financial assessment (means test) to determine how much, if anything, you contribute towards the cost of your care. The rules are detailed and some assets are disregarded — understanding them helps ensure you are not overcharged.
7 min
Paying for Social Care
Unlike the NHS, most social care in England is not free. Whether you receive care at home or in a care home, your local council will carry out a financial assessment to decide how much — if anything — you must pay towards the cost. Understanding the rules can help you plan and avoid unexpected charges.
8 min
Deferred Payment Agreements
A Deferred Payment Agreement (DPA) is an arrangement with your local council that allows you to delay paying some or all of your care home fees until after your death or when you choose to sell your home. It prevents you from having to sell your property immediately to fund care.
5 min
Deprivation of Assets Rules
Deprivation of assets occurs when someone deliberately reduces their capital — for example by giving money away or transferring property — in order to reduce the amount they pay for social care. Councils are alert to this and can treat you as if you still own the assets. There is no safe period after which a transfer is automatically disregarded.
5 min
More care questions
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