When the time comes to think about funding care for a loved one, it can feel like an overwhelming landscape to navigate. Many families assume that care costs must be met entirely from personal savings or assets, and are surprised to discover that local authority support may be available. Understanding how the system works, and knowing the right questions to ask, can make a real difference when planning ahead.
You May Not Have to Fund Care Alone
In England, local authorities have a legal duty to assess anyone who appears to have a need for care and support, regardless of their financial situation. This means that before any conversation about money takes place, your loved one has the right to a care needs assessment, completely free of charge.
This is an important and often overlooked first step. Many families go straight to thinking about costs without realising that an assessment must happen first, and that it can open the door to funded support.
What Is a Care Needs Assessment?
A care needs assessment is carried out by the local authority, usually by a social worker or occupational therapist, and looks at how your loved one is managing day to day. It considers things like whether they can wash, dress, prepare meals, move around safely, and maintain relationships and social connections.
The assessment isn’t just a checklist. It’s an opportunity for your loved one to explain how their needs affect their daily life, and for the family to share their perspective too. The outcome determines whether the person is eligible for local authority support, based on a national threshold known as the eligibility criteria set out in the Care Act 2014.
If your loved one is found to have eligible needs, the local authority must then carry out a financial assessment, sometimes called a means test, to determine how much, if anything, they will contribute toward the cost of their care.
How Does the Means Test Work?
The financial assessment looks at your loved one’s income, savings, and assets. In England, the current thresholds mean that if a person has assets above £23,250, they will generally be expected to fund their own care. If their assets fall below £14,250, the local authority will typically cover the full cost of eligible care. Between those two figures, a sliding scale applies.
It’s worth noting that the family home is not always included in the financial assessment. If a spouse, partner, or dependent relative continues to live there, it is usually disregarded entirely. This is an area where the rules can be complex, and seeking independent financial advice is strongly recommended.
What Happens After the Assessment?
If your loved one is eligible for local authority support, they will be given a personal budget, which is the amount the local authority calculates it will cost to meet their assessed needs. They may then choose to receive this as a direct payment to arrange their own care, or the local authority can arrange the care on their behalf.
It’s important to understand that local authority funding may not cover the full cost of a preferred care home if that home charges above the local authority’s standard rate. In these cases, a third party, such as a family member, can sometimes make a top-up payment to cover the difference.
Don’t Leave It Too Late
One of the most common challenges families face is leaving the assessment process too late, often because a crisis has prompted the need for care rather than planning ahead. Where possible, starting the conversation with your loved one’s GP or contacting the local authority’s adult social care team early gives you far more time and flexibility.
You can request a care needs assessment by contacting your local council’s adult social care department directly. There is no cost for the assessment itself, and you do not need a referral.
For more guidance on navigating care costs and funding options, visit our Care Finance Advice hub.
Disclaimer: This article is intended as general guidance and information only. It does not replace professional medical or financial advice. For personalised advice, please speak to your GP, healthcare professional, or a qualified financial adviser.
