Financial Assessment: The £14,250 / £23,250 Thresholds Explained

"They said it was a light-touch assessment. Nobody told us we could ask for a proper one — or that it might have made a difference."

If a Carer's Assessment or Needs Assessment finds that support should be provided, the council doesn't always fund it automatically. First it usually wants to know whether — and how much — you or the person you care for should contribute. That's the financial assessment, and it's a completely separate step from the assessment of needs itself.

This guide covers what a financial assessment actually involves, the shortcut many councils use instead of the full process, the two numbers that decide almost everything, and what's ignored entirely when the council works out what you can afford.

What a financial assessment actually is

Under Section 17 of the Care Act 2014, once someone has eligible care needs the council can look at their income, savings and other capital to decide how much — if anything — they should pay towards the cost of meeting those needs. It only ever applies to ongoing services the council proposes to arrange. It never applies to the right to be assessed in the first place, and it never applies to the Carer's Assessment conversation itself, which is always free.

🔀 Whose money gets assessed?

Only the money of the person being assessed — never a partner's or spouse's, even if finances are shared.

So if it's the person you care for being assessed, it's their money that counts, not yours. And on the rare occasion a council charges a carer directly for support, it's the carer's money that counts, not the finances of the person they care for.

The key points, in plain English

✅
It only happens after eligible needs are foundThe financial assessment is step two. It can't happen before a Carer's Assessment or Needs Assessment has already decided that support is needed.
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Two ways it can be doneA full assessment (the detailed, evidence-based process below) or a light-touch assessment (a shortcut — see next section).
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The home you live in is never countedif you're being assessed for care in your own home. It's a different story for care homes — see the "Care home vs. home care" section below.
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You get a written outcome either wayThe council must tell you the result, and if it's a light-touch assessment, must tell you that's what it was.
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You can always ask for a full assessment insteadEven after agreeing to a light-touch one, and even later if your circumstances change.

"Light-touch" vs. full assessment

A light-touch financial assessment is where the council treats someone as if a full assessment had been carried out, without actually working through the detailed process. It's meant to save time and paperwork in cases where the outcome is already obvious.

When a council might use light-touch	What it means
The charge for the service is small	So small that it's clearly affordable, and a detailed assessment would cost more to run than the charge itself is worth
Income is already low and verified through benefits	e.g. Pension Credit Guarantee Credit already confirms income is below the level the council would charge on
You have savings and are happy to self-fund	You know your resources are well above the threshold, don't want to go through a full assessment, and are willing to pay in full

⚠️ Your right to insist on a full assessment

A light-touch assessment is the council's shortcut, not your obligation. You're entitled to ask for a full financial assessment instead — at the point it's offered, or at any point afterwards if your circumstances change or you're not confident the light-touch outcome is right. The council must tell you when it has used a light-touch approach, and must carry out a full assessment if you ask for one.

Why it can matter: a light-touch assessment skips the detailed look at your specific disability-related expenditure, disregards, and circumstances. If you think you're paying more than you should — or could be entitled to help you weren't told about — asking for the full version is the way to check.

The two thresholds that decide almost everything

In a full financial assessment, capital (savings, investments, most property other than your main home) is compared against two fixed amounts, set nationally each year:

Capital held	What happens (2026/27 rates)
Below £14,250 (lower capital limit)	✓ Capital is ignored completely. Only income is assessed.
Between £14,250 and £23,250	Capital isn't ignored, but it isn't the full story either — "tariff income" is added: roughly £1 a week in assumed income for every £250 (or part of £250) of capital above £14,250.
Above £23,250 (upper capital limit)	✗ The person is assessed as able to pay the full cost of their care themselves — the council won't fund it, though it may still arrange it if asked.

ℹ️ "Tariff income" — what this jargon actually means

The savings between £14,250 and £23,250 are never touched, spent, or taken away. They just sit there as normal.

But for every £250 of savings above £14,250, the council pretends the person receives an extra £1 a week of income — even though no money is actually paid to them. This pretend amount is added to their real income (pension, benefits, etc.) only to work out their weekly care charge.

Example: £15,000 in savings is £750 above £14,250. That's 3 blocks of £250, so £3 a week is added to their income for charging purposes. If their real income is £180 a week, the council treats it as £183 a week. The £750 in savings stays exactly as it was.

These thresholds have stayed the same for many years — they're not automatically uprated with inflation each April in the way benefit rates are, so it's always worth double-checking the current figures rather than assuming they'll have moved.

What's disregarded — and what counts as income

A full assessment doesn't count everything someone owns or receives. Some of the most commonly missed disregards:

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The main homeNever counted for care at home. For care homes, disregarded permanently if a spouse, civil partner, or certain qualifying relatives still live there — see the section below.
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Earnings from workAll earnings from employment or self-employment are disregarded as income, in every case.
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Mobility-related disability benefitsThe mobility component of PIP or DLA is disregarded — and for people in a care home, must not be counted at all.
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Personal possessionsThings like jewellery, furniture and personal belongings aren't counted as capital.
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A personal expenses allowanceAnyone in a care home keeps a set weekly amount (£31.80/week in 2026/27) to spend as they wish — this is protected income, not a benefit, and can't be swallowed up by care charges.
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A minimum income guaranteePeople receiving care at home must be left with a minimum weekly income after charges — around £241.45/week for a single person over State Pension age in 2026/27 — so charges can never reduce someone below a baseline they can actually live on.

ℹ️ Disability-related expenditure

If someone has extra costs directly caused by their condition or disability — specialist laundry, extra heating, particular dietary needs, private care not funded elsewhere — a full financial assessment should take these into account and reduce the amount they're assessed as able to pay. This is one of the details a light-touch assessment can miss, since it doesn't dig into individual circumstances the same way.

Care home vs. home care — the property question

The single biggest difference in how the assessment works depends on where care is provided:

	Care at home	Care home (residential)
Is the main home counted as capital?	Never	Usually yes, unless a spouse, civil partner, or a qualifying relative (e.g. an elderly or disabled relative) still lives there — then it's disregarded permanently
12-week property disregard	Not applicable	The value of the home is ignored for the first 12 weeks after someone permanently moves into a care home, giving time to weigh up options such as selling, renting it out, or a deferred payment agreement
Deferred Payment Agreement	Not applicable	An option where the council pays the care home and recovers the money later — usually from the sale of the property — so nobody is forced to sell immediately

If you disagree with the outcome

Ask for the written financial assessment and a breakdown of how the figure was calculated, if you don't already have it.
If it was a light-touch assessment, ask for a full one — this alone often resolves the disagreement, since a full assessment looks at disregards and disability-related expenditure a light-touch one may have missed.
If you still disagree after a full assessment, ask the council for a review — most have an internal process specifically for charging decisions.
If the review doesn't resolve it, escalate to the council's formal complaints procedure, then the Local Government and Social Care Ombudsman if needed.

Common questions

Does this affect my Carer's Assessment?

No. Your right to a Carer's Assessment, and the assessment conversation itself, are never affected by finances. A financial assessment only comes into play afterwards, and only if the council proposes to arrange ongoing paid support as a result. See our Carer's Assessment guide for the full picture of that earlier step.

Can I refuse a financial assessment altogether?

Yes, but the council can then treat you as if you're able to pay the full cost — so refusing rarely helps unless you already know you're well above the upper threshold and are happy to self-fund.

Do the thresholds change every year?

They can, but haven't moved in some years even while other benefit rates rise annually. Always check the current figures rather than assuming last year's numbers still apply.

Will I be charged for the Carer's Assessment itself if I have savings?

No — the assessment conversation is always free regardless of income or savings. Only ongoing services that follow it can ever be charged for, and many councils choose not to charge carers for support at all.

Useful contacts

Your local council — adult social care finance team
The team that carries out financial assessments is usually separate from the social workers who do needs and carer's assessments. Ask your allocated worker to refer you, or search "[your council] + financial assessment."

Carers UK
carersuk.org — Your guide to the Care Act · 0808 808 7777 (freephone)
Monday to Friday, 9am–6pm. Practical advice on charging decisions and disregards.

Age UK
ageuk.org.uk · 0800 678 1602 (freephone)
Detailed factsheets on paying for care and financial assessments, particularly for older people.

Citizens Advice
citizensadvice.org.uk · 0800 144 8848 (Adviceline, freephone)
Free, confidential advice, including help challenging a financial assessment outcome.

Local Government and Social Care Ombudsman
lgo.org.uk
Independent, free investigation of complaints about councils — use once you've been through the council's own complaints process first.

Sources

⚠️ A note on this guide

This guide describes the law in England under the Care Act 2014, with rates correct as of July 2026, and is intended for general information only — it isn't financial or legal advice. Every council runs its own process and individual circumstances vary widely. For advice specific to your situation, contact your local council, Carers UK, Age UK, or Citizens Advice.