Financial Assessments for Care

Navigating care home fees can feel overwhelming, but you’re not alone. This page explains how the financial assessment (means test) works for care home placements in Scotland, what the local authority looks at, and the steps you can take to plan ahead. You’ll find clear information on capital thresholds, income rules, your home, top-ups, and options like Deferred Payment Agreements, all in plain English, so you can make confident decisions.

1. Initial Steps

Care Needs Assessment

Before any financial assessment, your local council will assess your care needs to determine if a care home placement is appropriate.

Financial Assessment (Means Test)

If you need a care home and cannot pay the full cost, the council will carry out a financial assessment to determine how much you can contribute.

2. What the Financial Assessment Looks At

Capital (Savings and Assets)

Includes: bank accounts, property, investments, land, and Premium Bonds.

Thresholds (2025*):

Over £32,750: You pay full fees (self-funding).

Between £21,500 and £32,750: You contribute on a sliding scale.
Under £21,500: You may qualify for full or partial local authority funding.

Income

Includes: pensions, benefits, and other regular income. Some income is fully counted, some partially disregarded, and some fully disregarded (e.g. mobility component of PIP).

Your Home

The value of your home may be included unless:

A spouse or dependent relative still lives there.
You’re in the first 12 weeks of permanent care (12-week property disregard).

Learn more

3. What the council pays for

If eligible, the council pays a standard rate for care.
You may still need to pay a top-up if you choose a more expensive care home.
Free Personal and Nursing Care is available to all eligible older people in Scotland, regardless of income.

4. Planning for when funding runs out

Track Your Capital

Keep a close eye on your savings. When they approach the £32,750 threshold, contact your local council to request a reassessment.

Deferred Payment Agreements

If most of your capital is tied up in your home, you may be eligible for a Deferred Payment Agreement. This allows the council to pay your fees and recover the cost later (e.g. from your estate).

Third-Party Top-Ups

If you choose a care home that costs more than the council will pay, a third party (e.g. a family member) can agree to pay the difference.

Downsizing or Renting Property

Renting out your home can generate income to help cover care costs.
Selling property may be necessary if no deferred payment is in place.

Seek Advice Early

Speak to a financial adviser or Age Scotland for help planning long-term care funding.
Consider Power of Attorney arrangements to ensure someone can manage finances if you’re unable to.

Helpful Next Steps

Talk to our team

We’re happy to explain options, availability, and how funding works in practice.

Contact your local council

To arrange or update a care needs and financial assessment.

Gather documents

Recent bank statements, details of pensions/benefits, property information, and ID.

Enquire now about a place with a Holmes Care Home and we can talk you through the financial assessment process in more detail.

*Note: Figures quoted above can change at anytime and should be used as a guide only. Always confirm full details with your local authority.