
Are You Worried About How Much Care Will Cost? Here’s What You Need to Know
Planning for care costs can feel overwhelming, especially when it comes to understanding how savings and assets impact what you need to pay. Many people wonder whether they will have to use their entire savings before receiving help from their local council. If you are looking for clear, reliable information about care funding, this guide will help you understand the key details, including financial thresholds, council support, and alternative funding options.
Who Pays for Social Care?
The cost of care in the UK depends on personal circumstances, including your level of savings and assets. Local councils provide financial support, but only if your total savings are below a certain limit. Here’s how it works:
- If you have more than £23,250 in savings – You will need to pay for your care in full.
- If you have between £14,250 and £23,250 – You may receive some support from your local council, but you will need to contribute towards the cost.
- If you have less than £14,250 – Your local council will provide the maximum financial assistance, but you may still need to use some of your income to help cover the costs.
The level of financial support you receive also depends on whether you need care at home or in a residential setting.

How Does a Financial Assessment Work?
Before the council decides how much help you are entitled to, they will carry out a means test. This assessment looks at:
- Your savings and investments
- Any income, including pensions or benefits
- Whether you own a property (this is only considered if you require residential care)
If your assets exceed the upper capital limit of £23,250, you will be expected to cover your care costs in full. If your savings fall below this threshold, you may qualify for some financial assistance.
Does My Property Count Towards Care Costs?
If you require residential care, the value of your home may be included in the financial assessment. However, your home will not be counted if it is occupied by:
- Your spouse or civil partner
- A relative aged 60 or over
- A disabled relative under 60
- A child under 16 who you are responsible for
Even if none of these exemptions apply, the property will be disregarded for the first 12 weeks after you move into care. After this period, you may need to sell your home or enter into a Deferred Payment Agreement (DPA), which allows the council to cover costs upfront and reclaim the money later when your home is sold.
What Are the Costs of Care?
Care costs vary depending on whether you receive support at home or move into residential care. Below is a general estimate of care expenses in the UK:
Home Care Costs
- Hourly visits: £20+ per hour (varies by location)
- Live-in care: £800 – £1600 per week, depending on care needs
Even if you are self-funding, you can request a free needs assessment from your local council to determine what support is required.
Care Home Costs
- Residential care: Around £700 per week
- Nursing care: Over £850 per week, with higher costs for specialist dementia care
If your savings drop below £23,250, the council may help with care home fees. However, you will still be required to contribute most of your income towards the costs. If you choose a care home that is more expensive than the council’s standard funding allowance, you or your family will need to pay the difference.
Alternative Ways to Fund Care
If you do not want to sell your home to cover care costs, several options are available:
- Equity release – Allows homeowners to access money from their property while continuing to live there, although interest will be added.
- Renting out your home – Provides income to help pay for care expenses.
- Deferred Payment Scheme – If you have low savings but own a home, the council may cover costs and recover funds when the property is eventually sold.
Before making any financial decisions, it is highly recommended to seek expert financial advice.
Can Benefits Help with Care Costs?
Some non-means-tested benefits can provide financial support:
- Attendance Allowance – For those over State Pension age who need daily assistance.
- Personal Independence Payment (PIP) – For those under State Pension age with care needs.
- NHS-funded nursing care – For individuals in a nursing home requiring medical support.
These benefits can significantly reduce the financial burden of self-funding care.
What Happens If My Savings Run Out?
If your savings drop below £23,250, you may qualify for local authority funding. It is essential to apply for support at least three months before reaching this limit. Councils only provide funding from the date of application, so early action is necessary.
Are Any Care Services Free?
Some social care services are available free of charge, regardless of financial circumstances. These include:
- Minor home adaptations (up to £1000), such as grab rails or ramps
- NHS Continuing Healthcare – Fully funded care for individuals with complex medical needs
- Short-term reablement care – Support following a hospital stay to regain independence
Can I Challenge a Care Funding Decision?
If you disagree with your local council’s decision on care funding, you have the right to challenge it by:
- Submitting a formal complaint to the local authority.
- Escalating the case to the Local Government and Social Care Ombudsman if the issue is not resolved.
Where Can I Get Financial Advice?
Understanding care funding can be complicated, and professional guidance can help. Trusted sources include:
- PayingForCare – A free service for older people
- Society of Later Life Advisers (SOLLA) – Call 0333 2020 454
- Age UK – Call 0800 055 6112
- Independent Age – Call 0800 319 6789
- MoneyHelper – Call 0800 011 3797
Final Thoughts
Planning for care costs can feel daunting, but understanding how savings impact eligibility for funding can help you prepare. Whether you are paying for care yourself or seeking council support, knowing your rights and options ensures you make the best decision for your circumstances.
For further guidance, contact Home Instead New Forest to discuss personalised care solutions and find out how we can support you and your loved ones.