Is Home Care Means Tested?

Understanding how to pay for home care can feel overwhelming. Many families want to know whether they’ll need to pay for care themselves or if they can get help from their local council. In this guide, we’ll break down everything you need to know about means testing for home care, making it easier to understand your options.

What Does ‘Means Tested’ Actually Mean?

When we talk about means testing, we’re talking about how the council looks at your money – your income, savings, and investments – to work out if you can get help paying for care. It’s a bit like when you apply for a student loan, where they look at your parents’ income to decide how much you can borrow.

• The council will look at your regular income (things like your pension and benefits)
• They’ll check your savings and investments
• They’ll consider certain benefits you get, like Attendance Allowance
• Unlike residential care, they won’t usually count the value of your home

Think of it as a financial health check that helps the council understand how much support you might need to pay for your care at home.

How Does the Means Test Work?

The means test might sound scary, but it’s actually quite straightforward. Your local council will arrange an assessment with you, usually in your own home, to look at your finances.

• If you have more than £23,250 in savings and assets, you’ll likely need to pay for all your care
• For savings between £14,250 and £23,250, you’ll pay part of the costs
• If you have less than £14,250, these savings won’t count towards your assessment

The council will also look at your weekly income, making sure you keep enough to live on – this is called your Minimum Income Guarantee. They want to ensure you’re not left struggling to pay your bills after contributing to your care costs.

What Gets Counted in the Means Test?

It’s important to know exactly what the council will look at when they do your means test. This helps you prepare and understand your situation better.

• Bank accounts and savings
• Stocks and shares
• Premium Bonds
• Income from pensions
• Most benefits (though some, like Personal Independence Payment, might be partially ignored)
• Income from investments or property rentals

However, some things aren’t included. Your main home usually isn’t counted if you’re receiving care there, which is different from the rules for residential care. The council will also ignore any joint accounts or savings that clearly belong to someone else.

Remember, being accurate and honest about your finances is critical. The council’s goal isn’t to catch you out – they want to make sure you get the right level of support for your circumstances.

Will My Partner’s Income Be Counted?

If you live with a partner, understanding how their finances affect your means test is crucial. While the council should only look at your own money, there are several important considerations that could impact your assessment.

• Only income in your name should be counted
• Joint accounts are typically split 50/50 unless you can prove otherwise
• Benefits that you receive as a couple (like Pension Credit) will be considered
• Your partner’s earnings won’t directly affect your assessment, but they might impact your household’s eligibility for certain benefits
• If your partner receives Carer’s Allowance for looking after you, this won’t be counted

The council will look carefully at how your household finances are arranged. For example, if you have savings in a joint account, they’ll usually assume half belongs to each of you unless you can show a different split. They’ll also look at how household bills are divided and who pays for what.

Some couples choose to rearrange their finances before a means test, but be careful – the council can investigate if they think you’re deliberately moving money around to avoid care charges. It’s always best to be honest about your financial arrangements.

How Can I Prepare for a Means Test?

Being prepared for your means test can make the whole process much smoother. It’s worth gathering all your financial information before the assessment takes place.

• Recent bank statements (usually the last 3-6 months)
• Details of any pensions you receive
• Proof of benefits you’re getting
• Information about any investments or savings
• Records of your regular bills and expenses
• Details of any property you own

Take time to organise these documents in advance. You might find it helpful to create a simple folder with everything in one place. Having a family member or friend help you gather this information can make it less stressful.

What If My Circumstances Change?

Life doesn’t stand still, and neither should your care assessment. Your financial situation might change for various reasons, and it’s important to know what to do when this happens.

• Tell your council if your savings drop below £23,250
• Report any significant changes to your income
• Let them know if your care needs increase or decrease
• Inform them about changes in your living situation

The council will review your case and may adjust your contribution to care costs accordingly. It’s better to report changes promptly rather than waiting for your annual review.

Getting Help with the Process

Navigating the means test process doesn’t mean you have to do it alone. There’s plenty of support available to help you understand and manage your assessment.

• Age UK offers free advice about care funding
• Citizens Advice can help you understand your rights
• Your local council’s adult social services team can explain their process
• Independent financial advisers can help you plan for care costs

Don’t hesitate to ask questions or seek clarification – it’s important you understand every step of the process.

Making the Right Choice for Your Care

Understanding means testing is just one part of arranging the right care for you or your loved one. What matters most is finding care that meets your needs while being affordable and sustainable for the long term.

At Lidder Care, we understand that navigating care options can feel overwhelming. Our experienced team can help you understand your options and find the right care solution for your circumstances.

Ready to Discuss Your Home Care Options?

Whether you’re eligible for council funding or looking to arrange private care, Lidder Care is here to help. Our professional care team provides personalised home care services that adapt to your needs and circumstances.

• Free initial consultation to discuss your care needs
• Transparent pricing and payment options
• Experienced, DBS-checked care professionals
• Flexible care packages that adapt as your needs change
• Comprehensive support for both funded and private clients

Don’t wait to get the support you need. Contact Lidder Care today for a friendly, no-obligation chat about your home care needs. Call us on 0330 223 6600 or fill out our online enquiry form to learn how we can help you maintain your independence at home.