One of the first financial questions families ask when a relative needs a care home is whether the council will help pay for it. The answer depends primarily on two national capital thresholds applied through a local-authority financial assessment.
The upper and lower capital limits
Above the upper capital threshold, a person is generally expected to pay their own care fees in full as a self-funder. Below the lower capital threshold, the local authority contributes towards fees based on the person's assessed income, after a financial assessment. Between the two thresholds, a tapered contribution applies, where the person contributes an amount based on their capital as well as their income. The exact current thresholds change periodically, so confirm the up-to-date figures directly with the local authority or on GOV.UK when a financial assessment is being arranged.
What counts as capital
Savings, investments, and — outside of the property disregard situations covered elsewhere — the value of a home can all count as capital in the financial assessment. Certain assets, such as personal possessions and some forms of life insurance, are typically disregarded; the local authority carrying out the assessment can confirm exactly what is and isn't counted in a specific case.
What counts as income
Pensions (state and private), certain benefits, and other regular income are assessed separately from capital, and typically go towards the cost of care once the financial assessment is complete, subject to a personal expenses allowance that the person is entitled to keep for their own use.
Why the assessment needs to happen even if you expect to self-fund
Even families who expect to be self-funders throughout should still request a financial assessment from the local authority, both to have an official record on file and because circumstances (and the funding position) can change as capital is spent down over time. Waiting until savings are nearly exhausted to request an assessment can cause delays exactly when they matter most.
What to do next
Contact the adult social care team at the local authority where your relative is ordinarily resident to request a financial assessment, and ask specifically about the current capital thresholds, what counts as capital and income in their case, and the property disregard rules if relevant to your situation.
How to use this guide in practice
Don’t read this as general information — use it as a worksheet. Write down the details of the person who needs care, the current limits of the situation at home, the monthly budget, the documents you already have, whether a local-authority financial assessment may apply, and who you’ve already spoken with. Then turn every unclear point into a specific question. A family that arrives with a clear picture usually gets more useful answers than one calling under stress with scattered information.
Keep one simple rule: anything about admission, cost, funding, timelines and whether a care home fits must be confirmed directly with the care home or the competent authority serving your area. This guide prepares the search — it does not replace official decisions.
Want a clear shortlist before you start calling?
If you don’t know which care homes to contact first, Curalune Care Help can prepare an ordered shortlist of 3–5 suitable options — with CQC ratings, contacts, useful links and a ready-to-send inquiry.
The service helps you organise the search.£69, one-off. If you don't receive at least 3 homes matching the area and criteria you gave us, we refund you in full. It does not replace the care home’s own assessment and does not guarantee admission, price or bed availability.
Important limit
Curalune offers practical help with the search and orientation. Admission, pricing, bed availability and the final assessment always rest with the care homes and the competent authorities (the local authority, the NHS, the Care Quality Commission).
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