If you or a loved one needs to move into a care home, the local council will perform a **Financial Assessment** (means-test) to decide who pays. In 2026, the rules around property and savings are strict, but there are vital safeguards to prevent houses from being sold immediately.
1. The 2026 Capital Limits (England)
The amount of savings and assets you have determines your contribution:
- Over £23,250: You are a "Self-Funder." You must pay the full cost of your care.
- £14,250 to £23,250: The council will help with your fees, but you must pay a "tariff income" (usually £1 for every £250 of savings over £14,250).
- Under £14,250: Your savings are ignored. You only pay what you can afford from your weekly income (minus a Personal Expenses Allowance).
🚀 The Hustler's Strategy: The 'Occupied Home' Shield
Your partner doesn't have to move out just because you go into care.
Keyword Strategy: Your home is completely ignored in the financial assessment if it is still occupied by: Your spouse or partner, a relative aged 60+, a disabled relative, or a child under 18. Strategic Move: Furthermore, if you are the first to move into a home, you get a **12-Week Property Disregard**. The council must pay its share of your fees for the first 12 weeks without counting the value of your home. This gives you time to decide whether to sell or arrange a **Deferred Payment Agreement**.
2. Deferred Payment Agreements (DPA)
If you own a home but don't have enough cash to pay your fees, you can ask for a DPA.
Technical Rule: The council pays your care home fees and secures the debt as a legal charge against your property (similar to a mortgage). The debt is only paid back when the house is eventually sold or after your death.
3. Personal Expenses Allowance (PEA)
If the council is funding your care, you are entitled to keep a small amount of your own income for personal items (clothes, toiletries, stationery). In 2026, the PEA in England is £30.15 per week.
Care Home FAQs
Can I give my house to my children to avoid fees?
Warning: This is known as **"Deprivation of Assets."** If the council believes you gave away money or property specifically to avoid paying for care, they can treat you as if you still own that asset and refuse to pay for your care.
What is NHS Continuing Healthcare (CHC)?
If your primary need for care is medical rather than social, you may qualify for **CHC**. This is funded 100% by the NHS and is not means-tested. Your property and savings are completely ignored.
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Benefit Experts Editorial Team
Benefit Experts Team – Independent UK benefits guidance. We provide independent, authoritative guidance to help UK citizens navigate the complex benefits system with confidence.