Long-Term Care

Is government support available?

The support you may be entitled to varies across the UK.

In England and Northern Ireland, any funding is currently based on the following capital limits:

  • Under £14,250: you will be entitled to local authority support. You won’t have to contribute from your capital, but you will be expected to contribute from income in excess of the personal expenses allowance (PEA) which is currently £31.80 per week in England and £27.19 in Northern Ireland.
  • Between £14,250 and £23,250: you will be entitled to some local authority support. You will have to contribute some capital (£1 per week for every £250 of capital between the lower and upper threshold), as well as income in excess of the PEA.
  • Over £23,250: you will be obliged to pay for the full cost of your care. This is known as self-funding.

The capital limits differ in Scotland, as shown below:

  • Lower limit: £22,750: you will be entitled to the maximum level of local authority support. You won’t be expected to contribute from your capital, but you will be expected to use your income to help fund your costs.
  • Upper limit: £36,750: you will be obliged to pay for the full cost of your care. If you have under £35,000 in capital, but your income is considered sufficient to fund your care, you will also have to pay all your accommodation costs.
  • Between £22,750 and £36,750: you will have to contribute £1 per week for every £250 of capital between the lower and upper threshold, and you will be expected to use your income to help fund your costs.

However, if you are aged over 65 and require residential care in a care home, you may also be eligible for the following NHS-funded nursing care. For 2026/27 these are:

  • £117.10 for nursing care
  • £260.30 for personal care
  • £377.40 per week for personal and nursing care (if you require both).

Like Northern Ireland, personal home care is free in Scotland if you have been assessed as needing it, irrespective of how much capital you have.

Wales

In Wales, the capital limit varies depending on whether you’re paying for non-residential or residential care.

What does a means test include?

When a local authority performs a means test, most of your assets and savings are treated as capital but your home is normally excluded under the following circumstances:

  • Your spouse or civil partner still resides in the property
  • A disabled relative resides in the property
  • A relative aged 60 or over resides in the property
  • A child aged under 18 resides in the property
  • The person is in the first 12 weeks of requiring long-term care
  • Their care needs are only temporary

Will giving my property away exclude it from the means test?

The local authority is entitled to question whether or not you have transferred your property specifically to avoid it being included in the means test. There is no time limit for this.

How much will long-term care cost?

Costs are very different depending on whether you receive care in your own home or in a care home and also depend on how much support you need. According to Laing Buisson, the average cost of residential care is between £27,000 and £39,000, rising to between £35,000 and £55,000 annually when nursing care is included2.

Planning for the cost of long-term care

We can advise you on how best to plan for your potential long-term care needs by creating a plan specific to your individual circumstances. 

This could be through investments, purchase of an annuity (lifetime income), property-related finance (such as equity release) or a combination of these. 

If you’re facing the challenge of paying for care, either for yourself or a loved one, we can help you make the right choices, so do get in touch. 

The value of investments may fall as well as rise. You may get back less than you originally invested. 

Think carefully before securing other debts against your home. Equity released from your home will be secured against it. To understand the features and risks, ask for a personalised illustration. 

1ONS 2022 

2LaingBuisson 

  • Pensions
  • Savings and Investments
  • IHT
  • Protection
  • Wills
  • Long-Term Care