Means Tests for Live-In Care Funding by Alcedo

A means test, or financial assessment, is a way of assessing whether a council should pay for someone’s care or whether the care will be paid for entirely privately. Generally, the means test will be based on how much money the person has (based on a few factors including savings and property), against how much care the person can afford. According to the NHS, in England the council will pay care costs if you have savings less than £23,250. From October 2025 this will rise to £100,000 in savings.

To carry out a means test, your local council will need to look at the financial information of the person needing care. This will be how they calculate how much they will put towards a person’s care. This may be including covering the cost of home care visits, a care home, or making alterations to a property (such as installing a stair lift or ramps).

It can sound overwhelming, but someone from the council will normally arrange a meeting with you to go through everything they need to know from you, step by step. They will typically ask about:

• Savings
• Any property you own (as well as second homes and properties that are not in the UK)
• Income
• Pensions
• Any Benefits you receive (such as Attendance Allowance or PIP)

Possessions or life insurance will not be included in this survey.

Sometimes a couple may share savings – in this case the means test will assume that the person needing care owns half of those savings.

Means tests for home live-in care are slightly different than if you were looking to go into a residential care home in that if you are receiving home care the value of the person’s house won’t count in the means test. Secondly, if you are receiving homecare you will be allowed to keep more income to pay for bills and expenses.

Long story short, no!  It is very important that you do not try to reduce any of your finances before the financial assessment. If the council believes you have given away money or property for the purposes of the means test, you may experience something called “deprivation of assets”. This means the assessment will take into account any assets you used to own, meaning they will still be counted.

Deprivation of assets is when someone gives away or does other thing sot reduce their assets so that they won’t count towards a means test. This could include:

• Giving away money
• Giving the title deeds of a property to someone
• Spending a lot more money than usual
• Gambling money away
• Transferring savings to a spouse or partner
• Spending savings on possessions that would be excluded from a means test

If a council suspects that the person needing care may have got assets to influence a means test, they will consider two things to confirm whether it counts as deprivation of assets:

Whether someone knew they might need care and support when they got rid of their property or money. (the timing and knowing about care needs)

Whether someone got rid of their home or reduced their savings mainly in order to avoid paying for care. (your reason for getting rid of assets)