Whether the council helps with the cost of care in England comes down to a financial assessment, a check of the cared-for person's savings and income. Two numbers decide it, and both are unchanged for 2026/27.
This guide explains the two limits, how the sliding scale in between works, what counts as savings, and the home and spouse protections most people are never told about. It is written for England.
- The two capital limits and the sliding scale between them
- What counts as savings and income, and what is protected
- Whether the home is counted, and the spouse protection
- What happened to the planned cap on care costs
The two savings limits in England
- Above £23,250: you pay the full cost of care yourself (self-funding).
- Between £14,250 and £23,250: the council helps, and you contribute on a sliding scale.
- Below £14,250: your savings are ignored, though your income is still counted.
What happens between the two limits
In the middle band, the council adds an assumed income from your savings, called tariff income. The rule is £1 a week for every £250 (or part of £250) you hold above £14,250.
So someone with £18,250 has £4,000 above the lower limit. Divided by £250, that is £16 a week the council expects them to put towards care from savings, on top of what they pay from income.
What counts as savings and income
Savings and capital include bank and building society accounts, ISAs, premium bonds, stocks and shares, and any property other than the main home. Personal belongings are not counted.
Income means pensions and most benefits. Importantly, the council must leave the person a set minimum to live on, so they are never assessed down to nothing.
Is the home counted?
This is where people worry most, and the answer is often reassuring.
For care at home, the value of the home is never counted. For a permanent move into a care home it may be, but there are strong protections: the home is disregarded if a husband, wife, partner or a dependent relative still lives there. There is also a 12-week disregard when someone first moves in, and a deferred payment agreement can let fees be paid from the property later rather than by selling it now.
Attendance Allowance is treated differently
Attendance Allowance is not means-tested, so savings and income make no difference to it. It is worth up to £114.60 a week towards care and is one of the first things to claim. See how the money fits together in my home care costs guide, and what to do when self-funding money runs out.
What happened to the cap on care costs?
You may have read about a planned cap on lifetime care costs, alongside a more generous means test. The government cancelled those reforms on 29 July 2024, so they did not come in for October 2025.
In plain terms: there is currently no cap on how much you might spend on care over a lifetime, and the £23,250 and £14,250 limits above are what apply.
A word on giving money away
Giving away savings or property mainly to avoid care fees can be treated as though you still own it. This is called deliberate deprivation, and there is no time limit on how far back a council can look. Take independent advice before making large gifts.
Scotland, Wales and Northern Ireland
The limits and rules above are for England. Scotland, Wales and Northern Ireland run their own systems, and the capital limits are generally more generous, so check the rules for your nation rather than assuming the England figures apply.
Sources
The figures here were checked against the sources below. Thresholds and rules change, so confirm the current figure before you rely on it. Last reviewed: July 2026.
