Most people will be expected to pay something towards the costs of their accommodation and personal care from their income and capital.

If the local authority is involved in arranging your placement, the amount you will have to pay will be worked out via a means test, which is based on nationally set guidelines.

Regardless of whether you move into a care home on a temporary or permanent basis, your local authority will need to carry out a means test. The amount of money you have is irrelevant at this point.

Once the means test has been carried out and you have been told the level of your needs, your income and assets are taken into account. Currently, if you have assets of more than £23,250, you will need to pay the full cost of your care. Your income is also taken into account.

Response to the Dilnot Commission on Care Funding

The Coalition government accepted the Dilnot Commission’s recommendations on principle in 2014, but chose different thresholds. These have been incorporated into the Care Bill. From April 2016, the upper capital limit will be £118,000.

This figure sits alongside a new care cost cap of £72,000, above which the state will meet eligible care needs. Progress towards the cap will be measured in a care account.

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