Paying for Care in England: Who Pays and How It Works

In England, anyone can ask their council for a free care needs assessment, whatever their savings. If the council finds eligible needs, a financial assessment decides who pays: with capital above £23,250 you pay the full cost, between £14,250 and £23,250 you contribute, and below £14,250 you pay only from income. The NHS pays separately for some health-related care. There is currently no cap on care costs.

At a glance

• A needs assessment is free to everyone; the council then tests savings and income.
• 2026/27 limits: £23,250 upper and £14,250 lower, with £1 a week counted for every £250 between them.
• In a care home the council leaves you a personal expenses allowance of £31.80 a week; your home is ignored for the first 12 weeks.
• NHS-funded nursing care pays £267.68 a week (standard rate) towards nursing home fees from 1 April 2026.
• The planned cap on care costs was cancelled in July 2024, so the means test still applies.

How does paying for adult social care work in England?

Social care is not free at the point of use like most NHS care. The Care Act 2014 sets a national framework, but councils run it locally, and what you pay depends on your needs, your income and your capital.

To start, contact your council’s adult social care team. Our guide to your rights under the Care Act explains the law and preparing for a care needs assessment covers what to say.

Who is eligible for council-funded care?

Under the national criteria, a council must consider whether your needs arise from a physical or mental impairment or illness, whether you are unable to achieve two or more specified outcomes (such as washing, eating or getting around), and whether this has, or is likely to have, a significant impact on your wellbeing. All three conditions must be met. If you are not eligible, the council should still give free information and advice on local help.

How does the means test work?

The financial assessment looks at capital and income. The 2026/27 capital limits are unchanged:

In the official example, someone with £18,100 of capital is £3,850 above the lower limit. That divides to 15.4, which rounds up to 16, so £16 a week is counted. Savings include bank accounts, ISAs and premium bonds, and income includes pensions and benefits such as Attendance Allowance or Personal Independence Payment. Our care means test guide goes through the detail.

Giving money or property away to avoid fees will not work. The council can ask about assets you used to own, and if it decides you reduced your wealth on purpose, it may refuse financial help. See deprivation of assets.

What is different for care homes and home care?

For home care, see the home care means test and financial assessment for home care. For care homes, the 12-week property disregard and personal expenses allowance have the details.

What will the NHS pay for?

NHS continuing healthcare (CHC) is free health and social care arranged and funded solely by the NHS for adults with long-term complex health needs. It is not means-tested. The integrated care board (ICB) must assess you if it seems you may need it, starting with a checklist and, if that is positive, a full assessment across 12 areas, with a decision usually due within 28 days. People nearing the end of life should be considered for the fast-track pathway. Use the NHS continuing healthcare checker, and see the CHC checklist.

NHS-funded nursing care is a flat-rate NHS payment to a nursing home for the nursing part of your fees, available to people who are not eligible for CHC but need registered nurse care. From 1 April 2026 it is £267.68 a week at the standard rate and £368.24 at the higher rate, which only applies to people who moved in before 1 October 2007 and were on the old high band. It is paid directly to the home and does not depend on your finances. See NHS-funded nursing care.

What if you pay for your own care?

People with capital above the limit are sometimes called self-funders. You can still ask for a needs assessment, and you can ask the council to arrange your care. If your needs are to be met by something other than a care home, the council must meet your eligible needs on request, though it may charge you the full cost plus an arrangement fee that reflects only its actual costs. If you need a care home, the council may choose to arrange it but does not have to.

If your money is mostly tied up in your home, a deferred payment agreement can let the council pay fees and recover the money later from the property. The council must offer one to people who meet the qualifying criteria and can provide adequate security, such as a first legal charge on the property. Read deferred payment agreements explained, self-funding care and selling a house to pay for a care home. Independent financial advice from an adviser specialising in later life can also help.

Is there a cap on care costs?

No. A planned lifetime cap on personal care costs of £86,000 was cancelled by the government on 29 July 2024, and it is not in force. Our guide to the care cap explains the history.

Reform is still under discussion. The independent commission led by Baroness Casey is due to report by summer 2027. In October 2026 the Department of Health and Social Care said the Prime Minister has committed to a National Care Service providing free personal care for older people, with means-tested council contributions remaining for bed and board, but gave no start date and described it as a commitment for the next Parliament. Until legislation changes, the rules above apply.

How does this differ in Scotland, Wales and Northern Ireland?

• Scotland: Personal care is free from the council after a needs assessment, regardless of age, income or savings. From 1 April 2026 the payments towards care home fees are £260.30 a week for personal care and £117.10 a week for nursing care. See paying for care in Scotland.
• Wales: Non-residential care charges are currently capped at £100 a week, and the capital limit for residential care is £50,000 (check the current figure with the council). See paying for care in Wales.
• Northern Ireland: Health and Social Care Trusts assess needs and finances. See paying for care in Northern Ireland.

Frequently asked questions

Who pays for care in England?

It depends on your needs and finances. Councils pay or share costs for eligible people below the capital limit, the NHS pays for continuing healthcare and nursing care where criteria are met, and people with more than £23,250 in capital usually pay the full cost.

Is a care needs assessment free?

Yes. Councils must assess anyone who appears to need care, whatever their finances. If you are not found eligible, the council should still give free advice on local help.

Does the council take my house to pay for care?

Not at once. In a care home the value of your home is ignored for the first 12 weeks, and not counted at all if a partner or certain relatives live there. Home care does not count it. A deferred payment agreement can delay a sale.

Is there a limit on how much I will pay in my lifetime?

No. The planned £86,000 lifetime cap was cancelled in July 2024. Without it, people above the capital limit carry the full cost of their care. Any future change would need new legislation.

What is the personal expenses allowance?

It is the weekly amount a council-funded care home resident must keep for personal spending. For 2026/27 it is £31.80 a week in England. Councils and care homes cannot require residents to spend it in particular ways.

Where to get help next

Check likely help with the funding checker, estimate costs with the what will I pay tool, and see typical prices in our care home fees guide. Our guide to local authority funding explains how councils set budgets and top-ups, and find care lists local providers. The Age UK Advice Line (0800 678 1602) offers free advice.

Sources

• GOV.UK: Social care charging for care and support 2026 to 2027, local authority circular
• GOV.UK: Care and support statutory guidance
• NHS: NHS-funded nursing care
• NHS: NHS continuing healthcare
• House of Commons Library: Introducing a cap on care costs
• Department of Health and Social Care: The future of adult social care

New guides: Average Care Home Fees in England: What Drives the Cost

Related guides: Third party top up fees · Residential or nursing home fees

See also: Can my son or daughter keep living in my house if I go into care?

See also: Are next of kin responsible for care home fees? · Free personal care in Scotland

Reviewed by The Care Panel team on 9 November 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.