Can I Apply for Care Funding If I Have Over £23,250 Savings?

Introduction

When it comes to paying for care in the UK, many people wonder whether they can receive financial assistance if they have savings above £23,250. Care funding is primarily means-tested, meaning your income and assets determine whether you qualify for support from your local authority.

Planning for care costs can feel overwhelming, especially when navigating the rules around savings and eligibility. In the UK, the £23,250 care funding threshold plays a key role in determining whether you qualify for financial support. 

If your savings exceed this amount, you may be expected to self-fund your care. However, there are still options available to help manage costs.

This guide explains how care funding works, what happens if your savings exceed £23,250, and alternative support options you may qualify for.

Understanding the £23,250 Care Funding Threshold

The £23,250 threshold is the upper limit for savings and assets set by the UK government. If your savings and assets exceed this amount, you’ll generally need to pay for your care in full. This applies to both:

• Home care (e.g., help with daily tasks at home).
• Residential care (e.g., moving into a care home).

What Counts as Savings and Assets?

• Savings: Cash in bank accounts, ISAs, or investments.
• Income: Pensions, benefits, and any other regular earnings.
• Assets: Property (excluding your primary home in some cases), stocks, and bonds.

If your total savings and assets exceed £23,250, you’ll be considered a self-funder. However, this doesn’t mean you’re entirely on your own; there are still ways to access support.

How Local Authorities Assess Care Funding Eligibility

Local authorities conduct a means test to determine your eligibility for care funding. Here’s what they consider:

Savings and Assets

• If your savings and assets exceed £23,250, you’ll need to pay for your care in full.
• If your savings and assets are between £14,250 and £23,250, you’ll contribute to your care costs, and the local authority will cover the rest.
• If your savings and assets are below £14,250, the local authority will fund your care, though you may still contribute from your income.

Income

Your income (e.g., pensions, benefits) will also be considered. You may need to contribute a portion of your income toward care costs, even if your savings are below the threshold.

Property

• If you’re receiving home care, your primary residence is not included in the means test.
• If you’re moving into a care home, your property may be included unless a spouse or dependent still lives there.
• Some local authorities may apply different capital limits for those receiving care at home.

What Happens If Your Savings Drop Below £23,250?

If your savings fall below the £23,250 threshold, you may qualify for partial funding from your local authority. Once your savings reach £14,250, you could qualify for more substantial support. It’s important to notify your local authority as your financial situation changes so that you can receive assistance as soon as possible.

Here’s how it works:

• Between £14,250 and £23,250: You’ll contribute £1 per week for every £250 of savings above £14,250.
• Below £14,250: Your savings won’t affect your eligibility, but you may still contribute from your income.

Social Care Cap from October 2025

From October 2025, the UK government is introducing an £86,000 cap on personal care costs. This means no one in England will pay more than £86,000 for their eligible care over their lifetime. However, this cap does not cover accommodation and daily living expenses in a care home.

Exceptions & Alternative Funding Options

Even if your savings exceed £23,250, there are other ways to access support:

NHS Continuing Healthcare

This is a non-means-tested funding option for individuals with significant medical needs. If you qualify, the NHS will cover your care costs, regardless of your savings.

2. Deprivation of Assets

Giving away money or assets to qualify for funding can lead to penalties. Local authorities may still count these assets in your means test if they believe you’ve intentionally reduced your wealth.

3. Deferred Payment Agreement

If you own a property and need to move into a care home, you can delay selling your home by entering into a deferred payment agreement. The local authority will cover your care costs, and you’ll repay them later when the property is sold.

How to Apply for Care Funding

Here’s how to get started:

1. Request a Care Needs Assessment

Contact your local authority to request a care needs assessment. This will determine whether you qualify for care support.

2. Undergo a Financial Assessment

If you’re eligible for care, the local authority will conduct a financial assessment to determine how much you’ll need to contribute.

• Explore Funding Options: If you are not eligible for local authority funding, consider NHS Continuing Healthcare or a Deferred Payment Scheme.
• Seek Professional Advice: Consulting a financial adviser can help you plan effectively for care costs.

3. Gather Required Documents

When applying for care funding in the UK, you’ll need to provide specific documents to your local authority for the financial assessment. This process ensures that your eligibility for funding is accurately assessed.You’ll need:

• Proof of identity.
• Bank statements and details of savings.
• Information about your income and property.

Updates for April 2025

These changes mean that care recipients will have slightly more financial freedom in managing their personal and living costs. Here's an overview of the developments for April 2025:

1. Personal Expenses Allowance (PEA) Increase

• The PEA is the amount of money that care home residents who receive local authority funding may keep for personal use.
• It will rise from £30.15 to £30.65 per week, giving individuals a little larger budget for personal items such as toiletries, clothing, and leisure activities.

1. Minimum Income Guarantee (MIG) Update

• The MIG ensures that individuals receiving home care have a minimal level of income after paying for care expenditures.
• MIG will increase in pace with inflation beginning in April 2025, giving more financial certainty for those receiving care in their own homes.

Conclusion

While having over £23,250 in savings usually means you will need to self-fund your care, there are still options available. By understanding means-tested care funding, NHS Continuing Healthcare, and deferred payment schemes, you can make informed decisions about covering care costs.

 If you are unsure about your eligibility, it’s always best to seek guidance from your local authority or a financial adviser to explore the best funding solutions for your situation.

Need help navigating care funding? Contact HTR Care for expert advice and support in securing the best care solutions for you or your loved one.

FAQs

1. What is the £23,250 care funding threshold?

The £23,250 threshold is the upper savings limit for means-tested social care funding in England. If you have savings above this amount, you are expected to self-fund your care. If your savings fall below £23,250, your local authority may contribute towards your care costs, depending on a financial assessment.

2. Will my home be considered in the financial assessment?

It depends on your situation. 

• If you’re receiving home care, your primary residence is excluded.
• If you’re moving into a care home, your property may be included unless a spouse or dependent still lives there.

You may also be eligible for a Deferred Payment Scheme, allowing you to delay care home payments until your property is sold.

3. What happens if my savings drop below £23,250?

If your savings fall below £23,250, you may qualify for partial financial support from your local authority, but you will still need to contribute towards your care. Once your assets reach £14,250, the council covers more of the costs, but your income may still be taken into account when determining contributions.

4. Are there exceptions for NHS Continuing Healthcare?

Yes. NHS Continuing Healthcare (CHC) is an exception because it is not means-tested. If you have a primary health need, the NHS may cover the full cost of your care, regardless of your savings. However, eligibility is based on a strict assessment, and not everyone qualifies.

5. How much can I have in savings before I have to pay for care?

If you have savings above £23,250, you will usually need to pay for your care in full. When your savings drop below this amount, you may start receiving partial local authority support. Once your savings reach £14,250, the council will contribute more towards your care costs, but your income will still be considered in the assessment.

6. If my savings exceed £23,250, can I get any help?

Yes, even if you have savings above £23,250, you may still access certain types of support. NHS Continuing Healthcare (CHC) is a non-means-tested option for individuals with significant medical needs. Additionally, you can explore a Deferred Payment Scheme if your home is included in the financial assessment, allowing you to delay care home payments. Seeking financial advice can help identify the best funding solutions for your circumstances.

7. Can you get continuing healthcare if you have savings?

Yes, NHS Continuing Healthcare (CHC) is not means-tested, meaning your savings and assets do not affect eligibility. This funding covers the full cost of care for individuals with complex, long-term health needs, subject to a strict assessment process. If your needs are primarily health-related rather than social care needs, you may qualify for CHC regardless of your financial situation.

8. How much money can you have before you have to pay for home care?

If you have over £23,250 in savings, you will usually need to self-fund your home care. If your savings fall below this threshold, your local authority may contribute to your care costs. Once your assets reach £14,250, the local council provides more financial support, though you may still need to contribute based on your income.

9. Is there a maximum amount you pay for a care home?

In England, there is no fixed maximum amount you pay for a care home, as costs vary based on the level of care required and the care home’s pricing. However, from October 2025, a cap of £86,000 will be introduced on personal care costs, meaning no one will have to pay more than this for their eligible care needs. Keep in mind that accommodation and daily living costs are not included in this cap.