Nursing Home Fees Calculator
Calculate your care funding status, weekly self-funding shortfall and how long capital will last. England 2026 thresholds.
Last updated: March 2026
Nursing Home Fees & Means Test Calculator 2026
Enter your financial details to find your care funding status and estimate how long your capital will last
Property is included in the means test after the 12-week disregard period ends. Consider a Deferred Payment Agreement.
England Care Funding Thresholds 2026
| Capital Level | Funding Position | What Happens |
|---|---|---|
| Below £14,250 | Full LA Funding | LA pays the full cost; only income is assessed (not capital) |
| £14,250 – £23,250 | Tapered (Tariff Income) | LA contributes; you pay capital tariff income of £1/week per £250 above £14,250 |
| Above £23,250 | Self-Funding | You pay the full fee from your own capital and income |
12-Week Property Disregard: Your home is excluded from the means test for the first 12 weeks of permanent residential care. After that, it is included unless a qualifying person (spouse, dependent relative, or sibling with an interest) lives there. Speak to your local authority about a Deferred Payment Agreement.
Complete Guide to Nursing Home Funding in England
How the England Means Test Works
When someone moves into a care home permanently in England, the local authority (council) carries out a financial assessment — the means test — to determine how much of the fees they will contribute. The means test looks at two things: capital (savings, investments, and usually property) and income (pensions, benefits, rental income).
The critical thresholds for England in 2026 are £14,250 (lower capital limit) and £23,250 (upper capital limit). If your total assessed capital exceeds £23,250, you are a "self-funder" and must pay the full care home fee from your own assets. If it falls below £23,250, the local authority contributes to your costs on a sliding scale. Below £14,250, you contribute only from income, not capital.
What Counts as Capital?
Capital includes: savings accounts, current accounts, ISAs, cash, stocks and shares, bonds, property you own (subject to disregards), and some other assets. The value of capital is assessed at the time of the financial assessment, not when care began. Jointly owned assets are typically counted at their share value.
What is disregarded: The value of your home is disregarded if a spouse, civil partner, or dependent relative continues to live there, or if a sibling with an ownership interest lives there. Personal possessions and a car used for essential transport are also excluded. Certain compensation payments (e.g. for personal injury) may also be disregarded.
The 12-Week Property Disregard
For the first 12 weeks of permanent residential or nursing care, your property's value is excluded from the means test regardless of whether anyone lives there. This 12-week disregard gives families time to arrange finances — including potentially applying for a Deferred Payment Agreement (DPA). After 12 weeks, if no qualifying person lives in the property, its value is included and you may be reclassified as a self-funder.
Note: the 12-week disregard only applies to permanent moves. Short-term or respite care does not trigger it.
NHS Continuing Healthcare (CHC): Fully Funded Care
If your primary need for care is a health need rather than a social need, you may qualify for NHS Continuing Healthcare. CHC is fully funded by the NHS and covers all care home costs — including accommodation — regardless of your finances. This is means-tested on need, not money.
The NHS Continuing Healthcare framework uses a Decision Support Tool assessing 12 care domains. A "priority" or "severe" rating in any domain, or a significant combination of moderate needs, can qualify someone for CHC. Typical qualifying conditions include advanced dementia, complex nursing needs, frequent acute clinical episodes, or very challenging behaviours.
If you are refused CHC, you can request a local review and escalate to NHS England. Many families are unaware of CHC eligibility, and an independent CHC advocate can significantly improve outcomes.
Funded Nursing Care (FNC)
Even if you do not qualify for full CHC, you may be entitled to Funded Nursing Care (FNC) if you are in a nursing home and have been assessed as having nursing care needs. FNC is a flat-rate NHS contribution to the nursing element of your care home fees — currently £235.88 per week in England. This is paid directly to the care home by the NHS.
Top-Up Fees
If the local authority agrees to fund your care but you wish to stay in a home that costs more than the council's standard rate, a third party (family member, charity) can pay a "top-up fee" to bridge the difference. The person in care themselves cannot usually pay top-up fees from their assessed capital (only from disregarded assets). The local authority must ensure a suitable placement at the standard rate is available — if not, the additional cost may become their responsibility.
Deferred Payment Agreements (DPAs)
A Deferred Payment Agreement allows the council to pay your care fees and place a legal charge on your property. The debt accrues and is recovered when the property is eventually sold. Interest is charged at the current DPA rate (3.79% per annum in 2026). DPAs allow people to stay in their chosen home without selling their house immediately.
Local authorities have a duty to offer DPAs in certain circumstances. You must have under £23,250 in non-property capital, be a permanent resident in a care home, and not have a qualifying disregard (such as a spouse living in the property). Independent legal advice is strongly recommended before entering a DPA.
Deprivation of Assets
Local authorities can investigate whether assets were deliberately given away or transferred to reduce care costs. This is called "deprivation of assets." There is no fixed time limit — councils consider the state of health at the time of disposal and whether care costs were a foreseeable need. If deliberate deprivation is found, the council can treat the asset as if it still exists when calculating your contribution. Gifts made years before a care need emerged are generally lower risk but not immune. Always take legal advice before making significant gifts.
Scotland, Wales and Northern Ireland
This calculator applies England rules only. Scotland has significantly more generous rules: personal care (help with washing, dressing, eating) is provided free through "Free Personal Care" for those assessed as needing it, regardless of finances. The Scottish capital threshold for accommodation costs is £35,000. Wales has a higher capital upper threshold of £50,000. Northern Ireland has different thresholds and rules administered through Health and Social Care Trusts. If you or a family member are in these nations, contact the relevant authority for a formal assessment.
Worked Examples
Example 1: Self-Funder with Large Capital
- Savings: £80,000 | Property: £280,000 (no qualifying resident) | Weekly fee: £1,100 | Weekly income: £300
- Total capital after 12 weeks: £80,000 + £280,000 = £360,000 — above £23,250 threshold
- Weekly shortfall: £1,100 − £300 = £800/week (£41,600/year)
- Capital depletes to £23,250 in approximately: (£360,000 − £23,250) / £41,600 = 8.1 years
- After that, local authority contributes; remaining care period is partially LA-funded
Example 2: Immediate LA Funding (Property Disregarded)
- Savings: £18,000 | Property: £200,000 (spouse living there — permanently disregarded) | Weekly fee: £950 | Weekly income: £250
- Total capital for means test: £18,000 (property excluded)
- Capital tariff income: (£18,000 − £14,250) / £250 = £15/week
- Total assessed weekly contribution: £250 (income) + £15 (tariff) = £265/week
- LA contributes: £950 − £265 = £685/week
- Capital depletes over time; when it falls below £14,250, LA covers all costs except assessed income
Expert Reviewed — Thresholds verified against Care Act 2014 regulations and GOV.UK care funding guidance. This is a planning tool only. A formal financial assessment by your local authority is required for actual funding decisions. Last verified: March 2026.