Who Pays for Care at Home or in a Care Home?
There is no single rule that says “the council pays for care” or “you have to pay for it yourself”.
There is no single rule that says “the council pays for care” or “you have to pay for it yourself”.
In England, the answer depends first on what kind of need is being met. Social care is usually means-tested. NHS healthcare is not. Some people pay the full cost of social care, some contribute towards it, and some receive NHS-funded care because their needs meet separate health-funding rules.
Before making major financial decisions, establish which system should be paying for which part of the care.
Start with the care need, not the bank balance
If somebody needs help washing, dressing, preparing food, staying safe or managing everyday life, ask the local authority for a needs assessment.
This remains useful even where the person has substantial savings and expects to self-fund.
The assessment establishes what support is needed. The financial assessment is the separate process that decides what the person can be charged for council-arranged social care.
How does the means test work in England?
For 2026/27, the national upper capital limit remains £23,250 and the lower capital limit £14,250.
For a permanent care-home resident, capital above £23,250 normally means the person is responsible for the full cost. Between £14,250 and £23,250, the assessment includes a tariff contribution of £1 a week for every £250, or part of £250, above the lower limit, alongside assessable income. Below £14,250, capital itself is no longer used to calculate that tariff contribution, although assessable income can still be charged.
These figures apply to England and should be checked whenever the guide is reviewed.
Does the house count?
Not automatically.
The value of a person’s main home is not included simply because they receive care in their own home.
For permanent residential care, the property can become relevant, but important disregards apply. For example, the value is generally disregarded where a spouse or partner continues to occupy the home, and other statutory property disregards can apply in particular circumstances.
There is also normally a 12-week property disregard when someone first enters permanent residential care and the property would otherwise be taken into account.
Do not sell or transfer a home simply because somebody has moved into care. Get the financial assessment and understand how the property is being treated first.
What if the person needs nursing or complex healthcare?
Social-care means testing is not the whole picture.
If somebody has a primary health need, they may qualify for NHS Continuing Healthcare, which is arranged and funded by the NHS and is not means-tested.
Someone in a nursing home who does not qualify for full NHS Continuing Healthcare may potentially qualify for NHS-funded Nursing Care.
A dementia, Parkinson’s or other diagnosis does not by itself decide eligibility. Later MH360 guides explain the CHC process separately.
What about care at home?
Local authorities can charge for care and support provided at home, but the financial assessment works differently from permanent residential care.
The value of the home the person lives in is not treated as capital for this purpose. Councils must also leave people with a protected level of income after charges, the Minimum Income Guarantee, and take account of relevant disability-related expenditure.
Do not assume that owning a house means somebody must privately fund all homecare.
Can family be required to pay?
The financial assessment is generally about the finances of the person receiving care, not their adult children’s savings or income.
Families sometimes choose to contribute towards a more expensive care-home placement. That can create a third-party top-up arrangement, but it is different from the council simply making relatives liable for the person’s assessed care costs.
Understand any top-up agreement before signing it, including what happens if the fee rises or the family can no longer pay.
Last reviewed
5 September 2026
Important informationThis guide provides general information about social care funding in England and is not intended to provide legal, financial, medical or other professional advice. Rules differ elsewhere in the UK and individual circumstances can be different. You may wish to check current information from official sources and seek advice from an appropriately qualified professional before making important decisions.