Paying for care at home: the council’s financial assessment, your savings and your house
In England, the value of someone’s home is not counted when the council assesses what they should pay towards care they receive at home. The financial assessment looks at income and savings, and the council may pay part or all of the cost depending on the result. Anyone can also arrange and pay for care privately.
For England. Last checked 13 November 2026. Next check by 13 February 2027. General information, not financial, legal or medical advice.
In short
- If you are receiving care at home, the NHS says the value of your home is not counted in the council’s financial assessment.
- For a long-term care home place the home is generally counted, with exceptions, for example if a partner lives there. It is not counted for short-term stays (NHS).
- The assessment looks at your income, savings and capital against limits set nationally. The current figures are on the NHS page, and they change.
- Attendance Allowance and PIP are not means-tested, and can be used to help pay for care (NHS).
- The assessment is free, done by the council, and finances are usually reassessed once a year (NHS).
- You can arrange and pay for your own care, and you can still ask the council about help if your savings run low (NHS).
Two steps: the needs assessment, then the financial assessment
The council first carries out a care needs assessment, which is free, and anyone can ask for one. If it finds that you have care needs, a financial assessment (a means test) follows to work out whether the council will pay towards the cost of your care. It is carried out by the council, you do not have to arrange it, and the NHS says finances are usually reassessed once a year.
Our guide to how to arrange home care for a parent explains how to ask for the needs assessment.
Is the house counted?
For care at home: no. The NHS says that if you are receiving care in your own home, the value of your home is not counted in the financial assessment.
For a long-term place in a care home: generally yes, unless certain people live there, according to the NHS: a partner, a close relative aged 60 or over (or under 60 and disabled), or a child under 16. For a short-term stay in a care home, the home is not counted.
So for most families arranging care at home, the answer to “Will Mum have to sell the house to pay for care?” is no, but the picture changes if she later moves permanently into a care home. If that is a possibility, speak to an independent adviser early. The NHS also describes deferred payment arrangements, which are for care home costs: the council pays the care home and is repaid later.
How savings and income are treated
The council assesses your income, including earnings, pensions and benefits, and your savings and other capital. National rules set an upper capital limit and a lower capital limit. We do not quote the figures, because they change: see the NHS pages below for the current ones.
Some points from the NHS pages:
- Attendance Allowance and Personal Independence Payment are not means-tested, so you can claim them whatever your savings, and can use them to help pay for care. See our guide to Attendance Allowance for a parent.
- The council will assume you claim all the benefits you are entitled to, so check that you are.
- If someone has deliberately reduced their wealth to avoid paying for care, the council may assess them as if they still had it.
- The NHS advises listing any disability-related expenses before the assessment.
Before the assessment
Gather bank and savings statements, pension and benefit letters, and a list of regular costs linked to disability or health. Have a friend or relative with the person if possible. The NHS recommends giving as much detail as you can, because leaving things out may mean you receive less than you need.
Personal budgets and direct payments
If the council will pay towards care, it works out a personal budget, which is the amount it will pay. The NHS says you can have it paid to you as a direct payment, paid to a provider, managed by the council, or a mix. If the council arranges care, you still decide how the personal budget is spent.
With direct payments you may be asked to keep receipts, or to use a separate bank account, and if you employ a carer yourself you take on employer duties such as tax, National Insurance and checks. Direct payments can be used for home care, but not for a permanent care home place. Ask the council to explain the rules for your situation.
Arranging your own care, even if the council pays
You can arrange and pay for care yourself. The NHS says you can also ask the council to arrange care and bill you, although not every council offers this, and some may charge a fee for doing it.
If you pay for your own care, we do not publish prices. You can ask us for a clear price when you enquire, and there is no arrangement fee and no hidden fees. Your free assessment is usually within 48 hours, and afterwards we give you a clear plan. Call 01242 371048, day or night.
When savings run low
If you are paying for your own care and your savings are close to the lower limit, the NHS advises contacting the council about 3 months before they fall below it, and says that funding is worked out from the date you contact them. Do not wait until the money has gone.
Small equipment and complaints
The NHS says small items of equipment and minor adaptations to your home are provided free once a need is agreed, whatever your means. The page gives the current limit.
If you disagree with a decision, complain to the council first. If you are not satisfied, you can take your complaint to the Local Government and Social Care Ombudsman.
Where to get independent advice
The official pages name free or independent sources of advice, including Age UK, Independent Age, the Family Rights Group, MoneyHelper and the Society of Later Life Advisers. We cannot assess anyone’s finances: only the council can do that.
What this guide does not cover
It does not say how long a council takes to carry out an assessment, because the official pages do not give a timescale. It does not cover Scotland, Wales or Northern Ireland, which have their own rules. It does not quote the capital limits or other figures. The NHS page on personal budgets was last reviewed in November 2022, so check the details with your council.
Sources we used
- NHS: Financial assessment (means test) (read 13 November 2026)
- NHS: Paying for your own care (self-funding) (read 13 November 2026)
- NHS: When the council might pay for your care (read 13 November 2026)
- NHS: Personal budgets (read 13 November 2026)
- NHS: Getting a care needs assessment (read 13 November 2026)
- GOV.UK: Apply for a needs assessment by social services (read 13 November 2026)
How we wrote this guide
This guide is general information for England, written by the Cott’s Care team. Cott’s Care Limited (registered with the CQC as Cott’s Care Solutions) is a family-run home care provider in Cheltenham with over 20 years of experience.
Every public fact comes from the official pages listed above, which we read on 13 November 2026. We do not quote benefit amounts, fees or thresholds, because they change: the sources give the current figures. We will check this guide again by 13 February 2027, and sooner if the rules change.
It is not financial, legal or medical advice, and we cannot say whether any person will qualify for a benefit or service. If you spot something that looks out of date, please tell us on 01242 371048.
Cite this guide: Cott’s Care Limited (13 November 2026). Paying for care at home: the council’s financial assessment, your savings and your house. https://cottscareltd.co.uk/guides/council-financial-assessment-savings-and-your-house/
