Under the NHS and Community Care Act 1990 Section 47, the social services department of your local authority (LA) has a statutory duty to assess your financial situation regarding the payment of care services. The financial assessment will either be offered to you or you can request one.
A major part of the financial assessment involves your local authority reviewing your income and capital to check how much you may have to pay for care. If you live in England the important threshold is £23,250. If you have the amount (or higher) of capital you will be assessed as being able to meet the full cost of your care.
If you have capital of £14,250 or under then your capital will be ignored in calculating how much you have to contribute to the cost of care. If the amount of capital is between £14,250 and £23,250 then the level of contribution to your care costs is determined by allocating an income value of £1 for every £250 of capital.
Whatever the assessment based on your capital the local authority will then review your ability to pay based on the assessment of your income. It is vital that before the financial assessment is carried out that you are claiming all benefits for which you may be entitled to. This is extremely important, as the means test assumes your overall income based on what benefits you should be in receipt of.
If you are receiving or will be receiving care in your own home, the value of your home is not counted within the means test.
In calculating your financial situation/wealth any asses jointly held, only the proportion you are deemed to own is taken into account. E.g. For a couple have £30,000 in saving all in joint names, £15,00 would be deemed each person’s capital.