How much can you have in savings before paying for care?
One of the first questions families ask when a loved one needs long-term care is how much savings they can have before paying for care, and the answer depends on strict financial thresholds. Above a certain limit, you’re expected to fund care yourself, but if your savings fall below the threshold, your local council may contribute or, in some cases, cover everything.
However, these rules only apply if you’re being means-tested for social care. If you qualify for NHS Continuing Healthcare (CHC), the means test doesn’t apply at all as CHC funding is based purely on health needs – not money.
In this guide, we’ll explain the current savings thresholds, how contributions are calculated and why CHC might be available no matter how much you have in the bank.
In this article, we discuss:
Savings threshold for free care
If you don’t qualify for CHC, your finances will be assessed by your local council, taking into account your savings, income and sometimes the value of your home. The result decides how much you’re expected to pay towards care home costs.
There are two key thresholds – the upper capital limit and the lower capital limit. Between these two levels, you may be asked to make a contribution, while the council pays the rest.
Upper capital limit
In England, if your savings and assets are above £23,250, you’ll be expected to fund your care in full. This makes you a ‘self-funder’.
For many people, this means covering care home fees of £1,000 – £2,000 per week. Annual costs can easily exceed £65,000, which has a significant impact on their savings or investments. Sadly, many families often face very difficult decisions about selling property to cover the costs of residential or nursing care.
If most of your wealth is tied up in your home, you may be able to delay selling your property through a Deferred Payment Agreement with your local council. This allows the council to recover the debt later, often after the property has been sold following death.
It’s really important to take advice before entering into such an agreement, as the details can be complex and might affect how much is eventually owed.
Lower capital limit
If your savings are below £14,250, your local council should cover your care costs, apart from a contribution from your weekly income, which might include pensions, benefits (such as Personal Independence Payment, or PIP) or other regular income streams.
If your savings fall between £14,250 and £23,250, the council will contribute, but you’ll also be expected to pay a tariff income of £1 per week for every £250 (or part of £250) you hold above the lower threshold.
I.e. With £20,000 in savings, you would pay around £23 per week on top of your income. With £23,000 in savings, you’d contribute £35 per week.
This system means your savings will gradually reduce until they fall below the lower limit, at which point the council should take on more of the cost. These rules are often described as the care savings threshold or the saving limits for care home fees, and it’s important to understand how they apply to your circumstances. For a deeper breakdown, see our guide to care home costs and fees in 2025.
Is CHC funding available even with savings?
Yes, NHS Continuing Healthcare (CHC) is not means-tested, so your savings, property or income do not affect whether you qualify. What does matter is whether your primary need is for health or social care.
If you qualify, the NHS must fund 100% of your care, which includes accommodation, nursing care and all additional support. This applies whether you are cared for at home, in a residential home or in a nursing facility.
Importantly, CHC can also apply retrospectively, so if you’ve already paid care fees but should have been eligible, you may be able to reclaim those costs. Many families have recovered tens of thousands of pounds by making a retrospective claim. You can read more details about how the system works in our guide to CHC funding costs.
Are you eligible for Continuing Healthcare?
To be eligible, your primary need must be for healthcare, which the local authority cannot lawfully provide. The NHS uses two assessments:
- An initial Checklist Assessment to screen eligibility.
- A full Multi-Disciplinary Team (MDT) assessment using the Decision Support Tool.
The CHC assessment process considers the quantity and quality of the care needs, before applying the primary health need test – this weighs social care needs against health care needs to determine which is greater. Eligibility for CHC is not dependent on the person’s diagnosis or why they need looking after – the only thing that matters is the type and frequency of care required.
There’s no financial cap on CHC – it exists to ensure that people whose primary need is for healthcare are not left to pay for care themselves. You can read more in our article on who qualifies for NHS Continuing Healthcare.
Families are also sometimes wrongly asked to pay additional contributions, known as top-up fees. If this has happened to you, read our guide on unlawful care home top-up fees.
Speak to Farley Dwek
Understanding the rules on savings thresholds and CHC funding can be overwhelming, especially when also dealing with the emotional pressure of arranging care.
At Farley Dwek, we specialise in helping families navigate these systems and challenge unfair decisions. If you need advice about the savings threshold for care home fees, or want to check if you’re eligible for CHC funding, speak to our expert team today on 0161 272 5222 or contact us online.