Will we have to sell the house to pay for care?

How does the council decide what you pay?

If you ask for council help with care, it does two assessments. A needs assessment looks at what help is needed. A financial assessment, or means test, looks at income and savings to work out what recipient pays towards it.

In England, for 2026 to 2027:

• If your savings and other capital are over £23,250, you'll usually pay the full cost of your care yourself.
• Between £14,250 and £23,250, the council contributes and you pay part.
• Below £14,250, that capital is ignored, though you'll still pay something from your income.

Whether your home counts as part of your capital is where care at home and care homes are treated very differently.

Is the house counted if care is at home?

No. When care and support are given in your own home, the value of the home you live in is not counted in the financial assessment. The council looks at your income and savings, but not the house.

That's true whether the help is a few visits a day or a carer who lives in. Live-in care doesn't put the house at risk in the council's means test.

Is the house counted in a care home?

Usually, yes. Once someone moves into a care home permanently, the value of their home normally counts as capital, which usually takes them well over £23,250. There are important exceptions. The home isn't counted if it's still lived in by:

• their husband, wife or partner
• a relative aged 60 or over
• a relative who is incapacitated
• a child under 18 they support

The council can also choose to ignore it in other cases, for example where a carer who gave up their own home still lives there.

What is the 12-week property disregard?

When someone first moves into a care home permanently, the council ignores the value of the home for the first 12 weeks, as long as their other savings are below £23,250. It's there to give families breathing space to decide what to do with the house.

What is a deferred payment agreement?

A deferred payment agreement is a loan from the council, secured on the house. The council pays the care home fees, and the money is paid back later, usually when the house is sold or from the estate after death. Interest and admin charges apply. It means you don't have to sell straight away, but the cost still comes out of the house in the end.

Can we give the house to the children to protect it?

Be careful. If the council decides someone gave away the house, or other money, in order to avoid paying for care, it can treat them as still owning it. This is called deprivation of assets. Take legal advice before transferring property.

Care at home vs a care home: how the house is treated

Compare costs in your area.

What if you're paying for care yourself?

Many families pay for live-in care privately from income, savings or pensions. Some release money from the house through equity release. If you're considering that, speak to a regulated financial adviser who specialises in later-life care, such as a member of the Society of Later Life Advisers.

It's also worth checking two things everyone should: Attendance Allowance, which isn't means-tested, and NHS Continuing Healthcare, where the NHS pays the full cost of care for people with significant health needs. How to pay for live-in care.

Where to get free, independent advice

• Your local council's adult social care team, for a needs and financial assessment
• Age UK Advice Line: 0800 678 1602, free, 8am to 7pm, every day
• Independent Age helpline: 0800 319 6789, free, 8.30am to 5.30pm, Monday to Friday
• Society of Later Life Advisers, to find a regulated financial adviser

This guide covers England. It's general information, not financial or legal advice. Rules can change, so check your own situation with your council or an independent adviser.