What is a Financial Assessment for Care — and What Does It Look At?

A financial assessment — sometimes called a means test — is a formal review carried out by the local authority to determine how much a person must contribute towards their care costs. It follows a care needs assessment and is required before the council will agree to fund any element of care.

What does it assess?

The assessment looks at capital (savings, investments, second properties) and income (pension, benefits, rental income). The primary home is generally disregarded during the assessment, except in certain circumstances — for example, if a person is moving into permanent residential care and no qualifying person remains in the home, the property value may be taken into account after 12 weeks.

The thresholds

Above £23,250 in capital: full self-funder, no council contribution. Between £14,250 and £23,250: partial council contribution calculated through a sliding scale. Below £14,250: council meets most costs, though income is still factored in.

How to prepare

Gather all financial information in advance — bank statements, pension letters, benefit letters, investment documents, property valuations. If a Deferred Payment Agreement may be relevant, note this. If your loved one lacks capacity, the person with power of attorney handles the assessment on their behalf.

What if you disagree with the outcome?

You have the right to request a review and to challenge the assessment if you believe it is incorrect or that assets have been assessed unfairly. An independent financial adviser can support this process.

We help families prepare for financial assessments and ensure no funding entitlement is missed. Speak to us →