What Happens when our Savings and Property have been used up paying for care fees?

A high percentage of families contact us once savings and property have been exhausted paying for care, after making the assumption once funds have run out, the local authority would automatically cover the full cost of care. In reality, the funding position is often far more complex. and financially challenging. Many families only discover the true implications after years of […]

A high percentage of families contact us once savings and property have been exhausted paying for care, after making the assumption once funds have run out, the local authority would automatically cover the full cost of care. In reality, the funding position is often far more complex. and financially challenging.

Many families only discover the true implications after years of paying care fees privately, when capital falls below key thresholds and financial support is finally requested.

The £23,250 threshold: not the end of paying

Under current rules in England, in the absence of NHS Continuing Healthcare (CHC) funding, individuals with capital above £23,250 are required to fund their own care in full. This often includes savings and, in many cases, the value of a property.

Once capital falls below £23,250, local authority funding may become available, but this does not mean care feed become fully funded.

Between £23,250 and £14,250, individuals are still expected to make a contribution towards their care costs. This is known as partial or means-tested funding, where the person continues to pay a significant proportion of the fees.

During this stage, families are often surprised to find that care bills remain high and financial pressure continues.

The lower limit: funding gaps and top-up

When capital falls below £14,250, it is no longer taken into account for means-testing purposes. However, even at this point, local authority funding does not always cover the full cost of care. 

Local authorities typically fund care up to their standard or “usual” rate, which is often lower than the actual cost charged by care homes — particularly nursing homes. 

This can leave a shortfall, which must usually be covered by a third-party top-up, often paid by family members. These top-ups can be substantial and ongoing, and families are frequently told they must agree to them to avoid a move to a different care setting. 

Acorn Continuing Healthcare regularly hears from families who did not anticipate this outcome and assumed care would be fully funded once assets had been depleted. 

A common misconception and a costly one

For many families, the reality is stark: 

• Years of private fees deplete savings and property
• Partial funding begins, but costs remain high
• Full local authority support still does not meet actual care fees
• Family members are left contributing indefinitely through top-ups

This is one of the most distressing situations families face, many people contact us saying that they believed once assets are gone, the system will step in fully. Instead, many find themselves still paying significant sums or being asked to top up care costs indefinitely. 

Why early advice is so crucial 

In many cases, individuals who reach this stage may have been eligible for NHS Continuing Healthcare funding much earlier, which is not means-tested and covers the full cost of care, regardless of savings or property. 

We are continually trying to raise awareness and urge families not to wait until funds are exhausted before seeking advice. Understanding the difference between local authority funding and NHS Continuing Healthcare funding and exploring eligibility early can have life-changing financial implications. Families concerned about care fees, dwindling assets, or future funding should seek to make contact with us as soon as possible, as any hesitations can lead to thousands of pounds being used incorrectly to pay for care. 

For free, confidential advice you can call us on 0345 548 0066 or visit our contact us page.