What Is A Financial Means Assessment: Getting Support For Your Social Care

 

If you are finding it hard to manage day-to-day activities like washing, dressing or cooking, you might qualify for help from your local council.

 

But before this support can be offered, they’ll usually carry out a financial assessment (also called a means test) to work out if you qualify for help paying for care, and if so, how much. 

In this article, we’ll walk you through what the means test involves, what information you’ll need to provide and what happens after the assessment.

 

Who Needs a Financial Assessment?

 

If you’ve had a care needs assessment and the council agrees you need support, the next step is a financial assessment.

 

Although you need to arrange the initial care needs assessment yourself, either by calling your local council or online, the means test will be arranged for you.

 

This applies whether you’re:

 

• Living in your own home and looking to get support from a carer or home help
• Or considering moving into a care home

 

 

 

What Does the Financial Assessment Look At?

 

A Financial Assessment Officer from the council will talk to you about your:

 

• Pensions
• Earnings
• Benefits which includes Attendance Allowance or PIP
• Savings
• Property which includes property you may have abroad

 

They won’t ask about the value of any possessions you may have or any life insurance policies you’ve taken out.

 

If you spend your money or give your property away before the assessment, it won’t make a difference because you can still be asked about things you used to own.

 

If the council thinks that you’ve reduced your wealth on purpose they might stop you getting any kind of financial help.

 

Important Financial Thresholds in England

 

There are capital thresholds in England that affect how much help you can get:

 

• If you have over £23,250 in capital, you’ll have to pay your own fees as a ‘self funder’
• If your capital falls between £23,250 and £14,250, your council will provide financial support and you’ll also pay a contribution from your income like your pension plus a tariff
• If your capital is less than £14,250, the council provides financial support and you pay a contribution from your income, but you don’t have to pay a tariff

 

The tariff is calculated as follows: for every £250 of capital that you have between £14,250 and £23,250, you must pay £1 a week towards the cost of your care.

 

How Can I Prepare for a Financial Assessment?

 

To prepare for your financial assessment, you’ll need to have information about the following things to hand:

 

• Savings in bank accounts, building societies, ISAs or premium bonds
• Stocks and shares you own
• Property or land that you own
• Any disability-related expenses you have

 

Do I Have to Sell My Home to Pay for Care?

 

If you just need a paid carer to come to your home, the value of your house won’t be included in the financial assessment.

 

But if you need to move to a care home, the value of your house will be included unless your spouse or partner is still living inside it.

 

Depending on your circumstances, you might qualify for a deferred payment agreement where the council covers the cost of you moving to a care home upfront and recoups the money from your estate later.

 

 

 

What Happens After the Financial Assessment?

 

 

The council will get in touch with you, usually through writing, about how much your care is going to cost and the amount you’ll have to pay.

 

If you do qualify for help from the council, you’ll be offered a personal budget which you can choose to get in two ways:

 

• A direct payment into your bank account each month
• The council organises your care and you’ll get a regular bill to contribute towards it

 

If you don’t qualify for help with costs, you’ll be expected to cover the full cost of your care yourself. The council must regularly reassess your finances, usually on an annual basis.

 

If you or a loved one are starting to think about care costs, a financial means test is a key step in understanding your options. Being informed puts you in control.

 

 

At HelpAlert, we’re here to support your journey to safer, more accessible care. Call our friendly team today on 01273 055049 or visit our website to learn how our personal alarms can add security while you plan ahead.