The Care Means Test Explained: £23,250 and What It Really Means
The two numbers that decide who pays for care
In England, the care means test turns on two figures, unchanged for 2026 to 2027: £23,250 and £14,250. Above £23,250 in assets you pay for your care in full. Below £14,250 your capital is ignored and you contribute only from income. In between, you pay £1 a week for every £250 of capital above the lower limit. And for care in your own home, the value of the home you live in is not counted at all.
Families often assume the means test is more punishing than it is, especially about the house. This guide sets out how the assessment actually works, using the current government charging rules.
The Means Test at a Glance
The essentials:
- Over £23,250 in assessable assets: you fund your care in full
- Between £14,250 and £23,250: you contribute £1 a week for every £250 of capital above £14,250, plus what you can afford from income
- Below £14,250: capital is ignored, and only income is assessed
- For care at home, the home you live in is excluded from the assessment
- The means test only happens if you ask the council for help: private arrangements need no assessment
- These limits are set nationally and are unchanged for 2026 to 2027
Figures on this page were checked on 13 August 2026 against the NHS guidance on paying for your own care. Rates can change, usually each April, and the NHS website always has the most up to date figures.
How the Assessment Works
What counts as capital?
Savings, investments and most property count. The crucial exception for home care: the home you live in is excluded when the council assesses you for care in your own home. It only enters the calculation for a permanent move into a care home, and even then there are exceptions, for example where a partner still lives there.
The middle band, in real terms
Someone with £19,250 in savings sits £5,000 above the lower limit. That is 20 lots of £250, so they contribute £20 a week from capital, plus an income-based contribution the council calculates. The council must always leave you with a minimum income to live on, set nationally each year.
The means test treats care at home more gently than a care home, because the house stays out of the calculation. A family choosing between the two options is often comparing a means test on savings alone against a means test that may eventually include the family home.
That is not a reason on its own to choose care at home, but it is a fact worth having straight before any decision. Our guide to home care or a care home weighs the whole picture, not just the money.
If a council is helping with the cost, Hertfordshire runs the financial assessment through Adult Care Services, and free advice is available from HertsHelp on 0300 123 4044.
Paying privately does not mean paying blind. Our prices are published: care visits start from 30 minutes, from £34, live-in care from £255 a day, and every family receives a written quote before anything begins. Regulated home care is VAT exempt.
Self-funders should also check the benefits that ignore the means test entirely. Attendance Allowance is not means-tested and pays £76.70 or £114.60 a week, and NHS continuing healthcare funds care in full where needs are primarily health needs, whatever your savings.
Once the assessment sets your contribution, you can still choose who provides the care. Direct payments in Hertfordshire let you take the council funding as money you control, and use it with a regulated provider you chose yourself.
Whatever route applies, get the assessment in writing, ask how each figure was reached, and take advice before signing anything that affects the house. The means test rewards families who understand it.
Common Questions About the Care Means Test
Will my parent have to sell their house to pay for care at home?
No. For care in your own home, the home you live in is excluded from the means test. The house only enters the calculation for a permanent move into a care home, and even then exceptions apply, for example where a partner still lives there.
What are the current means test limits?
For 2026 to 2027 the limits are unchanged: £23,250 and £14,250. Above the upper limit you pay in full. Between the limits you contribute £1 a week for every £250 of capital above £14,250. Below the lower limit, only income is assessed.
Do we need a means test if we pay privately?
No. The financial assessment only happens if you ask the council to help with the cost. Families arranging care privately simply agree terms with their provider, and with us that starts with a written quote.
Is the council allowed to take all of someone’s income?
No. National rules require the council to leave a minimum income to live on. Ask for the calculation in writing so you can see how your contribution was reached.
Which benefits ignore the means test?
Attendance Allowance is not means-tested at all, and NHS continuing healthcare has no means test either: it is based purely on health needs. Both are covered in our detailed guides.
Where can we get free advice in Hertfordshire?
HertsHelp on 0300 123 4044 offers free, independent advice on money and care, and Adult Care Services on 0300 123 4042 handles assessments. We are also glad to talk the options through with you.
How to Get Started
- List assets and income before the assessment, and note what should be excluded
- Ask Adult Care Services for the care needs assessment first: the means test only matters once needs are agreed
- Talk to us about what care would actually cost, with real numbers. Call 01727 324 127