Understanding how care is paid for in the UK is crucial for older adults and their families. One of the most common questions is whether someone will be classed as a self-funder when paying for care. This status depends on the results of a financial assessment and can significantly influence how care is arranged and funded.
This article explores what self-funding care means, who qualifies, how financial assessments work, and what options are available.
What Is Self-Funding Care?
Self-funding care refers to paying for your own care services, either at home or in a residential facility, without full financial support from the local authority.
You are considered a self-funder if your savings, income, and (in certain cases) assets such as property exceed the thresholds set by your region’s care system. In the UK, these thresholds vary between England, Scotland, Wales, and Northern Ireland.
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How Financial Assessments Work
Before deciding whether you are a self-funder, a care needs assessment takes place. If ongoing care is required, a financial assessment will then calculate the total value of your resources.
- Savings and income are always considered.
- Property value is usually included if long-term residential care is needed.
- Primary residence may be excluded in certain cases (e.g., if a spouse or dependent still lives there).
The results of this assessment determine whether you will pay all, part, or none of your care costs.
UK Care Funding Thresholds (2025/2026)
The following table outlines the upper and lower savings thresholds across the UK. These thresholds determine whether individuals are classified as self-funders.
| 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 |
- If your assets are above the upper threshold, you will be a self-funder.
- If they fall between the thresholds, partial funding may be available.
- If they are below the lower threshold, the local authority will typically cover the full cost.
Who Qualifies as a Self-Funder?
You will qualify as a self-funder if:
- Your savings and income exceed the upper threshold for your region.
- You own property that is included in the financial assessment for residential care.
- You are not eligible for full or partial local authority support.
However, exceptions exist, and eligibility can change if your financial situation shifts over time.
Support and Alternatives for Self-Funders
Even if you pay for your own care, support may still be available:
Attendance Allowance for individuals above State Pension age.
Personal Independence Payment (PIP) for those below State Pension age.
Equity release or deferred payment agreements to unlock funds tied up in property.
Immediate needs annuities for predictable long-term care payments.
FAQ – Self-Funding Care in the UK
What does self-funding care mean?
Self-funding care means paying for your own care services without full financial support from the local authority.
How do I know if I am a self-funder?
A financial assessment following a care needs assessment determines whether you meet the thresholds to be classed as a self-funder.
Are property assets always included in the assessment?
Property is usually included for residential care but is excluded for home care if you continue to live there.
Is there a cap on care costs in England?
The government planned to introduce a cap on lifetime care costs in 2025, but this has been scrapped. Currently, there is no cap on self-funding care.
Can benefits help cover costs if I am a self-funder?
Yes, Attendance Allowance and Personal Independence Payment (PIP) may be available depending on age and circumstances.
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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