Paying for care in a care home

Use this guide to help you calculate the cost of your care, or someone else’s, in a care home. Find information on the Personal Expenses Allowance and deferred payments.

Calculating your contribution

When conducting a financial assessment, we'll take into consideration your income and capital assets.

Your income includes:

Your capital assets include:

  • savings
  • money from investments
  • the value of your property.

If you are going into residential care and your partner will continue to live in your home, the value of your home is not taken into account when calculating your capital assets. The value of your property will also not be counted in your capital for the first 12 weeks of your stay.

Having capital below or over £23,250

If your capital is worth more than £23,250 then you'll need to pay for the full cost of your social care. If you expect your capital to fall below the £23,250 threshold after you begin paying for your care, please let us know.

Even if you're not eligible for financial assistance, we can arrange your care and support services at your home for you. At present, we don't charge an administration fee to do this.

If your capital is less than £23,250 then the amount you're expected to pay towards your care will be means-tested under the Care Act 2014.

If the total value of your capital is £14,250 or under it will be disregarded when calculating your contribution, and only your income will be taken into account.

If the amount of your capital assets is between £14,250 and £23,250, then you'll be asked to pay £1 a week for every £250 interval within this range.

The table below explains how this works in greater detail.

Value of capital assets Amount to pay What this means
Capital assets of £15,250 £4 a week There are four intervals of £250 above the £14,250 threshold: 4 x £250 = £1,000
Capital assets of £16,999 £10 a week There are ten intervals of £250 above the £14,250 threshold (as the value of assets is £1 below the next interval): 10 x £250 = £2,500

The combined value of your weekly income and earnings from capital will be calculated to find your assessed charge. This is what you are deemed able to pay toward your social care.

You are entitled to a personal expenses allowance of £25.65, which will be deducted from your assessed charge. The remaining amount is your weekly contribution towards the cost of your care.

If your calculated weekly contribution is higher than our weekly rates for residential care homes, then you won’t be eligible for financial assistance.

If your weekly contribution is lower than our weekly rates then we'll make up the difference.

You can see an example of how the assessed charge and your weekly contribution is calculated on the last page of this guide.