What Capital Is Means Tested When Paying for Care Fees?
Published / Last Updated on 06/10/2026
Many people are surprised to discover just how much of their wealth can be taken into account when they need long-term care. Understanding which assets count towards the care fees means test is an important part of planning for later life.
Care Fee Reforms Were Cancelled
The previous Government had planned significant changes to the way care fees are funded in England, including:
- An £86,000 lifetime cap on personal care costs.
- An increase in the upper capital limit from £23,250 to £100,000.
- An increase in the lower capital limit from £14,250 to £20,000.
These reforms were due to be introduced in October 2025 but were subsequently cancelled following a Government announcement on 29 July 2024. As a result, the current means-testing rules remain unchanged.
See: Care Fees Capital 2025
Current Care Fees Means Test Limits
In England, the current capital thresholds are:
- More than £23,250 of assessable capital: you will normally pay the full cost of your care.
- Between £14,250 and £23,250: you may receive some local authority support but will be expected to contribute towards your care costs.
- Less than £14,250: your capital is generally disregarded, although your income will still be assessed.
What Capital Is Included in the Means Test?
Under the Care and Support Statutory Guidance, most forms of savings, investments and property are included when assessing your ability to pay for care.
Property and Land
The following are usually treated as capital:
- Residential property (unless subject to a disregard)
- Second homes
- Buy-to-let properties
- Land and development land
- Commercial property interests
Savings and Cash Deposits
Local authorities will usually include:
- Current accounts
- Savings accounts
- Building society accounts
- Deposit accounts
- Cash held at home
- National Savings products
- Premium Bonds
Investments
Investments are generally included, including:
- Stocks and shares
- Individual Savings Accounts (ISAs)
- Unit Trusts
- OEICs
- Investment Trusts
- General Investment Accounts
- Co-operative share accounts
Other Capital Assets
The means test may also include:
- Save As You Earn (SAYE) schemes
- Certain trust interests
- Capital held by a Deputy or the Court of Protection
- Other assets that can be converted into cash
In simple terms, most forms of accumulated wealth are likely to be considered during a care fees assessment.
What About Jointly Owned Assets?
Where assets are jointly owned, the local authority will normally assume that each owner owns an equal share unless evidence demonstrates otherwise.
For example:
- A joint bank account containing £60,000 would usually be assessed as £30,000 belonging to each account holder.
- Joint investments would generally be apportioned according to ownership.
Documentary evidence can be provided if the ownership split differs from the standard assumption.
Does This Include Pensions?
This is where many people become confused.
A pension that is already being paid as income is normally assessed under the income rules rather than the capital rules. However, pension savings that have not yet been accessed may be treated differently depending on age, circumstances and the type of pension arrangement involved.
Professional advice is often advisable where significant pension wealth exists.
The Reality of Care Fee Means Testing
For many self-funding individuals, the care fees means test can include:
- Property and land
- Cash savings
- Bank deposits
- Stocks and shares
- ISAs
- Investment portfolios
- Trust interests
- Premium Bonds
As a result, a substantial proportion of an individual's personal wealth can be taken into account when determining eligibility for local authority financial support.
Not Everything Is Included
There are important exceptions.
Certain assets may be disregarded, including:
- Your main home in specific circumstances.
- Property occupied by a spouse or qualifying dependant.
- Some compensation payments.
- Certain trust arrangements.
- Personal possessions and household items.
The rules surrounding disregarded capital can be complex, which is why it is important to understand both what is included and what is excluded before making decisions about care funding.
Read: Government Care and Support Statutory Guidance 2023 (updated 18th February 2025), see: Care and Support Statutory Guidance
Watch: Exempt Assets Care Fees Means Test
Key Takeaway
Despite proposals for a more generous care funding system, the current means-testing rules remain in force. Most savings, investments and property are included when assessing care fee eligibility, and individuals with more than £23,250 of assessable capital will generally be expected to meet the full cost of their care.
Understanding which assets count, and which can be disregarded, is an essential first step when planning for future care costs and protecting family wealth.
