When a loved one is being considered for residential care, two separate assessments usually come into play. One is a needs assessment, which looks at the person\'s care needs. The other is a financial assessment, often called a means test, which the local authority uses to decide whether — and how much — it will contribute to the cost of care.
What the financial assessment typically looks at
The assessment covers two broad categories: capital (savings, investments and, in some situations, property) and income (pensions and other regular income).
National rules set capital thresholds. If a person has capital above the upper threshold they will usually be expected to pay the full cost of care. Below the lower threshold the local authority typically meets more of the cost. Between the two, both parties contribute. The exact figures differ across the four nations of the UK and are reviewed from time to time.
When the home may be disregarded
The value of the family home is normally disregarded while a qualifying person — usually a spouse, civil partner or certain other dependants — continues to live in it as their main home. There is often a 12-week property disregard at the start of a care-home stay, and deferred-payment arrangements may be available where selling is otherwise required.
What families most often miss
Three things come up again and again in our conversations. First, families do not realise that NHS Continuing Healthcare is a separate route that should be considered before the means test is final. Second, families worry about a “seven-year rule” that does not apply to care fees. Third, families underestimate how much the picture depends on which part of the UK they are in.
Not sure where you stand?
A free initial conversation can help you work out the sensible next step for your family. Call 0191 603 0221 or request a callback. No obligation.