The Truth About Self-Funding Care

Whether or not your parent is expected to fund their own care depends on how much they have in savings, property and other assets. This is known as a means test, and the thresholds vary depending on where they live in the UK.

Here’s how the systems compare across the four nations:

Residential Care

If your parent needs to move into a care home, the local council will assess their finances to determine how much they should pay. The value of their home may be included unless a qualifying dependent, such as a spouse, still lives there.

• Over £23,250: They are expected to pay the full cost of their care.

• Between £14,250 and £23,250: They will pay a contribution from their income plus a tariff income of £1 per week for every £250 (or part of) of savings above £14,250.

• £14,250 or less: Their capital is disregarded, but they’ll still contribute from their income.
  
  

Your parent must be left with a Personal Expenses Allowance (PEA) of £30.15 per week for personal spending.

Care at Home 

When care is delivered at home, the value of the home is not counted in the financial assessment.

• Over £23,250: Your parent is likely to pay the full cost of their care.

• Between £14,250 and £23,250: A tariff income and an income-based contribution will apply.

• £14,250 or less: Their capital is ignored, though income is still assessed.
  
  

They are entitled to retain a Minimum Income Guarantee (MIG)—a protected amount of income to cover basic living costs, which varies by age and circumstances.

If eligible, they can request direct payments to arrange care independently, rather than through the council.

Read more about paying for care in England

Residential Care

If your parent needs to move into a care home:

• Over £50,000 in savings and capital: They are expected to pay the full cost of care.

• £50,000 or less: The local authority contributes, based on an assessment of income (including pensions and benefits).
  
  

They must always retain a Personal Expenses Allowance of at least £44.65 per week for personal items.

Care at Home 

Your parent might be asked to contribute up to £100 a week if:

• They have a high disposable income.

• Their savings and investments (excluding the value of their home) are over £24,000.
  
  

Local authorities must ensure they retain enough income for daily living costs. Capital below £24,000 is disregarded for home care.

Find out more about paying for care in Wales. 

Residential Care

The council will carry out a financial assessment to determine your parent’s contribution.

• Over £35,000: They pay the full cost of care.

• £21,500 to £35,000: A tariff income is charged at £1 per week for every £250 (or part of) above £21,500.

• £21,500 or less: They may receive financial help.
  
  

Even if they pay for care, those aged 65+ may be entitled to free personal and/or nursing care, paid directly to the provider.

Your parent must be left with a Personal Expenses Allowance, protected for personal spending (updated annually).

Care at Home

The value of the home is not included. Contributions are based on income and savings, and local authorities must ensure that essential living costs are met. Free personal care is available to people over 65, subject to a needs assessment.

Read more at Care Information Scotland.

Residential Care

If your parent owns their home, it is treated as capital 12 weeks after they move permanently into a care home—unless a close relative still lives there.

• Over £23,250 in assets: Expected to pay full care costs.

• £14,250–£23,250: Expected to pay part of the costs.

• Below £14,250: The local trust pays, though income may still be assessed.
  
  

They will be left with a Personal Expenses Allowance of £34.10 per week. Disability Living Allowance (mobility) continues separately.

Care at Home

If your parent needs support at home, they may receive free domiciliary care. Alternatively, they may be eligible for direct payments to arrange their own services. The funding amount is based on a financial assessment.

Nursing Care Support

If your parent needs nursing care in a registered home, the trust will pay £100 per week toward this cost.

Support in your home

If you’re assessed as needing support, you may be entitled to financial help or direct payments to arrange care and services that help you live independently at home.

Find out more about paying for care in Northern Ireland

If your parent moves into a care home permanently, the value of their home may be included in the financial assessment used to calculate how much they need to pay. This rule applies across England, Wales, Scotland, and Northern Ireland and the core approach is broadly the same nationwide.

Care in the Home (Non-Residential Care)

If your parent receives care at home, the value of their home is not included in the financial assessment. This is consistent in all four UK nations.

Care in a Care Home (Residential Care)

When your parent moves permanently into a care home:

• The home is excluded from the financial assessment for the first 12 weeks.
• After that, it is usually included as capital, which may affect whether they qualify for financial support.

However, the home will be excluded indefinitely if it’s still occupied by a qualifying person, including:

• A spouse or civil partner
• A close relative aged 60 or over
• A child under 18 who is dependent on your parent
• A disabled relative of any age
• In some cases, a former partner who is a lone parent
  
  

Why this matters

If the home is included as capital and your parent’s total assets exceed the local threshold, they may be expected to pay the full cost of their care.

If you’re unsure whether an exemption applies, it’s important to speak to your local authority or an independent adviser.

Regardless of whether your parent is self-funding, they are still entitled to a care needs assessment. This is your right across all nations and a valuable first step to understanding what support and options are available.

Apply for a Needs Assessment 

There is a deep emotional impact when a parent’s care becomes a financial equation. You may be making decisions that affect your family’s future, their home, and your peace of mind. Suddenly, you are comparing costs, deciphering care contracts, and trying to figure out if a private fund will last six months or six years. The emotional labour is immense.

Families describe the experience as isolating and overwhelming. What was once a close personal relationship becomes layered with paperwork, financial planning and hard choices. The result is often guilt, anxiety and exhaustion.

For many carents, these are sleepless nights. The question is not just “What can we afford?” but “Are we doing the right thing?” and “How do I protect my parent and myself through this process?”

The research from IMPACT shows that self-funders often face a starkly different experience from those who receive council-funded support.

Many people:

• Do not realise that social care is not free until a crisis happens
• Expect the system to work like the NHS, only to be met with complex rules and confusing processes
• Receive little or no support from local councils once it is clear they are over the funding threshold
• Are asked to choose providers from long lists without context, guidance or help navigating quality differences
• Pay significantly more than the council would pay for the same care

There is also the issue of what happens when the money runs out. Known as “capital depletion,” this transition from private to state-funded care is confusing and poorly communicated. Families are often unsure when to contact the council, whether care will continue uninterrupted, or if their current provider will be covered under local rates. One carent shared that, during this period, she had to borrow money from her local authority to bridge the gap while waiting for her mother’s house sale to go through.

These are not small questions. They affect people’s homes, stability, and ability to plan ahead.

Despite the challenges, there are some trusted resources and legal entitlements that can help.

Care Needs Assessments: Every adult in the UK, regardless of income, is entitled to a care needs assessment. This should outline what support your parent needs and what might be available. It can also be a valuable tool for planning, even if you are not eligible for council funding right away.

Apply for a Needs Assessment 

Financial Advice: Few families speak to a financial adviser. Trust is low and costs can be high. But this is an area where trusted advice could make a real difference. Organisations like the Society of Later Life Advisers offer access to qualified professionals who understand the complexity of care funding.

• Find an adviser at SOLLA
  
  

Legal and Practical Resources:

• Care Confidence: Built with the public and professionals to guide decisions about paying for care.
• Social Care Talk: Real stories from those navigating the system.
• Age UK: Practical support, information lines and local services.

At Carents, we are not just about giving you facts. We are here to acknowledge your experience. Supporting a parent through the care system is one of the most demanding roles you will ever take on. It is emotionally complex and often invisible to others.

We are building a platform that recognises the full weight of this responsibility. Not just the logistics, but the love, the frustration, the resilience, and the small acts of grace every carent performs each day.

No one should have to walk this journey alone. You are not just paying for care. You are carrying your family through one of life’s hardest transitions.

Self-funding is not a lifestyle choice. It is the default for many. A system designed to support those in need often places the heaviest burden on families who fall just outside eligibility criteria.

If your parent is self-funding, do not wait for a crisis to seek help. Know your rights. Understand the system. And remember that your effort, your care, and your love matter deeply.