Planning Ahead for Long-Term Care – Taking Control of Your Future

It’s not always easy to think about a time when you might need extra support, whether for yourself or a loved one. But with people living longer than ever, the possibility of requiring care later in life is becoming increasingly common and planning for that eventuality is a key part of long-term financial wellbeing.

Care costs can be significant and understanding how they might affect your finances allows you to stay in control and make confident decisions, whatever the future holds.

Is government support available?

Government support for care costs varies depending on where you live in 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 £28.25 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.

The capital thresholds for care home funding differ in Scotland:

Lower limit: £21,500: 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: £35,000: 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 £21,501 and £35,000: 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.

If you live in Wales, a capital limit of £24,000 applies to non-residential care, and a limit of £50,000 applies if you need to have 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 included¹.

Making sense of it all – we're here to help

The idea of paying for care, whether for yourself or a loved one, can feel overwhelming. But you don’t have to navigate it alone.

We can help you explore all available options, from purchasing a lifetime annuity or unlocking capital through equity release, to investing in income-producing assets that can support your care needs. Often, a blend of solutions works best, so we’ll guide you through it with tailored advice based on your individual circumstances.

Whether you’re planning ahead or facing an immediate care decision, we’re here to support you in making confident, informed choices. Just 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.

^1, Laing Buisson

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