The way care is funded in the UK is shaped by strict financial thresholds that determine who pays for care and who receives support from local authorities. These thresholds are updated regularly and vary across England, Scotland, Wales and Northern Ireland.
For families planning ahead in 2025, understanding these rules is essential. This article explains the care funding thresholds across the UK, how financial assessments work, and what they mean for individuals who need care.
Why Care Funding Thresholds Matter
A financial assessment evaluates an individual’s income, savings, and assets (such as property if residential care is needed). Based on the results:
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- People with resources above the upper threshold pay for their own care (self-funders).
- Those with resources between the upper and lower thresholds may receive partial support.
- Individuals below the lower threshold qualify for full local authority funding.
Care Funding Thresholds Across the UK (2025/2026)
The following table compares thresholds in each UK nation.
| Country | Upper Savings Threshold | Lower Savings Threshold |
|---|---|---|
| England | £23,250 | £14,250 |
| Northern Ireland | £23,250 | £14,250 |
| Scotland | £35,000 | £21,500 |
| Wales | £50,000 (care homes) / £24,000 (home care) | N/A |
England and Northern Ireland: Strictest Thresholds
Both England and Northern Ireland apply the lowest upper savings threshold of £23,250. Anyone with assets above this level must fund their own care. The lower threshold is set at £14,250, meaning individuals with less than this amount qualify for full funding.
Scotland: More Generous Allowances
In Scotland, thresholds are higher, reflecting a more generous system. The upper threshold stands at £35,000, while the lower threshold is £21,500. This provides a wider band where partial local authority support may be available.
Wales: Distinctive Approach
Wales sets the most generous limit for care home funding, with an upper threshold of £50,000. For home care, a different limit of £24,000 applies. This allows individuals to retain more of their savings before needing to pay for care themselves.
What This Means for Families in 2025
The impact of these thresholds is clear:
- Where you live in the UK directly influences whether you pay for your own care.
- Savings and property assets play a decisive role in financial assessments.
- Planning ahead is essential, as thresholds can determine if care is affordable without additional financial products such as equity release or deferred payment agreements.
For full and updated information, visit the official UK Government guidance:
Paying for Your Own Care – GOV.UK
FAQ – Care Funding Thresholds UK 2025
What are care funding thresholds in the UK?
They are financial limits used to decide whether you must pay for your own care or receive funding from your local authority.
Why are thresholds different across the UK?
Health and social care policies are devolved, so England, Scotland, Wales and Northern Ireland set their own funding rules.
Does property count towards the threshold?
Yes, if you need residential care. However, your main home may be excluded if a spouse or dependent continues to live there.
Is there a cap on care costs in England?
The planned £86,000 lifetime cap was cancelled in 2024. Currently, there is no cap on self-funding care costs.
How do thresholds affect home care?
In most regions, the value of your home is not included if you continue living there while receiving home care.
Need help finding a care home?
Senior Home Plus offers free personalized guidance to help you find a care facility that suits your health needs, budget, and preferred location in the UK.
Call us at 0203 608 0055 to get expert assistance today.
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