Local authority funding for care at home is means tested: the council assesses your savings and income, not the value of your home, which is fully disregarded for care in your own home. If your capital is above £23,250 you pay in full. Below it the council contributes, and the Minimum Income Guarantee protects a set weekly income you keep.
The point most guides blur is the home. For a care home, the property can be counted after 12 weeks. For care at home, it never is, and that changes who qualifies.
Who qualifies for local authority funding for care at home?
You qualify through two separate assessments. First, a care needs assessment must find your needs are eligible under the Care Act 2014. Then a financial assessment, the means test, decides how much the council pays and how much you contribute. Both are free, and anyone can request them from their council, whatever their savings.
The two gates are independent. Passing the needs assessment does not guarantee free care, and having modest savings does not help if your needs are not judged eligible.
- Care needs assessment. A social worker looks at what you struggle with day to day, such as washing, dressing, preparing meals or staying safe. If the impact on your wellbeing is significant, your needs are eligible.
- Financial assessment. The council then works out your contribution from your capital and income. Even self-funders can ask for a needs assessment, which is useful for planning and for arranging care through the council.
Eligibility criteria set by the Care Act 2014. Wales applies its own 2014 Act. As at August 2026, subject to change.
How does the means test for care at home work?
The financial assessment looks only at your capital and income. In England, capital above £23,250 means you fund your own care; below £14,250 your savings are ignored; between the two you pay tariff income of £1 a week for every £250. For care at home, your main home is never counted.
Capital means savings, most investments and second properties. The bands below have been frozen since 2010. A planned rise to a £100,000 upper limit alongside the £86,000 care cost cap was cancelled in the Autumn 2024 Budget.
| Your capital (England) | What you pay |
|---|---|
| Over £23,250 | You fund your own care in full (self-funding) |
| £14,250 to £23,250 | Tariff income of £1 a week per £250, plus your assessed income |
| Under £14,250 | Capital is ignored; only your income is assessed |
Source: gov.uk local authority charging circular 2026 to 2027. Wales uses a single £24,000 capital limit for care at home. As at August 2026, subject to change.
One caution: if you give away savings or property mainly to reduce a future care bill, the council can treat you as still holding it. This is called deliberate deprivation of assets, and it is worth understanding before any gifting as part of estate planning.
What you would actually pay: a worked example
Take a pension-age person living at home with £18,000 in savings and £280 a week of income (state and private pension). Their home is not counted at all.
- Tariff income on capital. £18,000 is £3,750 above the £14,250 lower limit. At £1 per £250, that adds £15 a week.
- Total assessed income. £280 income plus £15 tariff income is £295 a week.
- Protected income (MIG). The Minimum Income Guarantee for a single pensioner is £241.45 a week for 2026 to 2027, which the council must leave them.
- Assessed contribution. £295 minus £241.45 is £53.55 a week. The council pays the rest of their personal budget.
Weekly contribution: about £53.55. Council pays the balance of the care package.
Illustrative only; rates as at August 2026, subject to change. Your council may allow further disability-related expenses, lowering the figure.
How much income can you keep?
The Minimum Income Guarantee sets a weekly floor the council must leave you after any contribution. For 2026 to 2027 it is at least £241.45 a week for a single person of pension age, £120.40 for a working-age person aged 25 or over, and £95.40 for those aged 24 or under. Disability-related spending can be deducted too.
Benefits can also help. Attendance Allowance, worth £76.70 or £114.60 a week for 2026 to 2027 depending on the level of need, is not means tested and can be claimed whatever your savings, though the council may count it as income in the assessment. Where care is driven mainly by health needs, NHS Continuing Healthcare can fund care in full with no means test, and is worth requesting.
Sources: gov.uk Minimum Income Guarantee and Attendance Allowance rates, 2026 to 2027. As at August 2026, subject to change.
What does council funding for care at home cover?
Council funding pays towards the care your needs assessment identifies, delivered in your own home. That usually means personal care and support with daily tasks, arranged either through a council-commissioned agency or as a direct payment you manage yourself. It does not cover general living costs.
Typical support includes:
- Personal care such as washing, dressing and help with the toilet
- Help with meals, medication and moving around safely
- Support to get to appointments or social activities
- Some domestic help where it is linked to an assessed need
- Equipment or small adaptations, sometimes funded separately
When the council commissions care, the Homecare Association recommends a minimum rate of £34.42 an hour for 2026 to 2027, the level it says lets agencies pay the National Living Wage and stay sustainable (Homecare Association, as at August 2026, subject to change).
How do you apply for council funding for care at home?
Start with your local council's adult social services, not a care agency. The route runs from a needs assessment, through the financial assessment, to a care and support plan with a personal budget. You can then take the money as council-arranged care or as a direct payment.
- Contact adult social services. Ask your council for a care needs assessment. You can request one for yourself or, with their agreement, for a relative.
- Have the needs assessment. A social worker assesses what help you need and whether it is eligible under the Care Act 2014.
- Complete the financial assessment. Provide details of your savings, income and any disability costs so the council can set your contribution.
- Agree a care and support plan. This sets out your personal budget, the weekly cost of meeting your needs, and how much of it you pay.
- Choose how care is delivered. Take a council-arranged service, or a direct payment to arrange your own care, including employing a carer. Setting up a lasting power of attorney in advance helps someone manage this if you later cannot.
Frequently asked questions
How much savings can you have before you pay for care at home?
In England, if your capital is above £23,250 you pay for your care in full. Below £14,250 your savings are ignored, and between the two you pay £1 a week for every £250. Your main home is not counted for care at home (gov.uk, as at August 2026, subject to change).
Does the council count my house for home care?
No. For care delivered in your own home, the value of that home is fully disregarded in the financial assessment. Only your savings, investments and income are counted. A property is only ever counted if you move permanently into a care home, and even then not for the first 12 weeks.
Is care at home free if you have no savings?
Not automatically. Below £14,250 your capital is ignored, but you still contribute from income above the Minimum Income Guarantee, which is at least £241.45 a week for a single pensioner in 2026 to 2027. If your income is at or below that floor, your care may be fully funded (gov.uk, as at August 2026, subject to change).
Can I get direct payments instead of council-arranged care?
Yes. Once you have an eligible needs assessment and a personal budget, you can ask for a direct payment and arrange your own care, including choosing your own agency or employing a carer. Your assessed contribution is added to the same account so the care is covered.
What is the difference from care home funding?
The capital limits and means test are the same, but for a care home your property can be counted after 12 weeks, while for care at home it never is. That difference means many people qualify for more help at home than they expect. See our guide on care home fees and property.