Paying for care in the UK often means using your own resources as a self-funder. However, financial circumstances can shift over time. Savings may decrease, income streams may change, or property values might be reassessed. When this happens, your eligibility for local authority support may also change.
This article explains what happens if your financial situation changes while funding your own care, how reassessments work, and what steps to take if you move from being a self-funder to receiving local authority support.
From Self-Funding to Local Authority Support
When your resources fall below certain thresholds, you may no longer need to pay for all your care costs. Instead, you may qualify for partial or full funding from your local authority.
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A new financial assessment is required to determine your updated status. This ensures you are contributing only what is necessary based on your current financial situation.
Thresholds and Financial Reassessments
The UK uses thresholds to decide whether someone pays for their own care. If your savings or assets fall below these levels, your council may take over part or all of your care costs.
| Country | Upper Threshold (2025) | Lower Threshold (2025) | Impact if Finances Drop |
|---|---|---|---|
| England | £23,250 | £14,250 | Below £23,250: May qualify for partial support |
| Northern Ireland | £23,250 | £14,250 | Below £23,250: May qualify for partial support |
| Scotland | £35,000 | £21,500 | Below £35,000: May qualify for partial support |
| Wales | £50,000 (care homes) / £24,000 (home care) | N/A | Below thresholds: May qualify for full support |
Top-Up Fees and Continuing in the Same Care Setting
If you qualify for local authority funding but the amount provided does not cover your current care costs, a top-up feemay be required. This means a family member, friend, or charity contributes the difference so you can remain in the same care setting.
Steps to Take if Your Financial Situation Changes
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Notify your local authority – Inform them when your savings or assets fall below the relevant threshold.
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Request a reassessment – A new financial evaluation will determine whether you are eligible for funding.
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Explore benefit entitlement – You may still qualify for Attendance Allowance or Personal Independence Payment (PIP), which are not means-tested.
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Plan ahead – Consider long-term solutions such as deferred payment agreements or annuities if financial uncertainty continues.
FAQ – Changing Financial Situations in Care Funding
What happens if my savings fall below the threshold?
You may become eligible for partial or full local authority funding, depending on your country’s rules.
Will I automatically be reassessed?
No, you must notify your local authority and request a reassessment.
Can I stay in the same care setting if I switch to local authority funding?
Yes, but if local authority funding does not fully cover the cost, a top-up fee may be required.
Are benefits available even if I am a self-funder?
Yes, Attendance Allowance and PIP are available regardless of your financial status.
Can I move back to self-funding if my finances improve?
Yes, if your resources increase above the thresholds, you may return to self-funding 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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