The short answer
- Over £23,250 and you pay in fullThat is the whole definition of a self-funder in England. Below it the council contributes something, on a sliding scale down to a lower limit where savings are ignored entirely.
- Your house is a different question for a care homeIt is never counted for care at home. For a permanent care home place it is disregarded for the first 12 weeks and can be counted after that, unless somebody who qualifies still lives there.
- A deferred payment agreement means you do not have to sell in a hurryThe council pays the fees and takes a legal charge on the house instead, repaid when it is eventually sold.
- Ask for a reassessment before the money runs out, not afterThe council's contribution starts from its own assessment, not from the day your savings crossed £23,250.
Figures are 2026/27 rates from gov.uk, checked 4 September 2026. Carer and care home rates are what families pay on PrimeCarers, with our fee included.
Where you stand
The two numbers that decide whether you are a self-funder
Self-funding is not a choice you make. It is what happens once a financial assessment shows your capital is above a line the government sets. Below that line the council contributes something, and how much depends on a second line underneath it.
Over £23,250
You are a self-funder
You pay the full cost of the care yourself. The council will still carry out a care needs assessment and can still arrange the care for you if you want it to, but it will not contribute towards the bill.
£14,250 to £23,250
A sliding scale, not a self-funder
The council still contributes. It adds £1 a week of assumed income for every £250 of capital in this band, on top of what your actual income is assessed to be.
Under £14,250
Your savings are left out of it
The council does not count capital below this line at all. What you pay, if anything, depends on income alone.
Care at home
The value of your home is never counted, at any level of savings, for as long as you live in it. There is no 12-week clock and nothing to defer.
A permanent care home place
The value of your home is disregarded for the first 12 weeks. After that it counts towards your capital, unless a partner, a relative aged 60 or over, a disabled relative or a child under 18 still lives there. If it counts, a deferred payment agreement can still let you delay a sale.
Capital means savings, investments, and most property other than the home you live in. It does not include your income, which is assessed separately and has its own rules, set out in full for care at home in local authority funding. A single pensioner and a couple are assessed differently, and only your own money is counted, never a partner's savings on their own. If a needs assessment has not been done yet, ask for one regardless of what your savings look like; it costs nothing, and it is the same assessment the council uses whether you end up paying yourself or not. Being a self-funder does not remove your right to that assessment, and a council cannot lawfully refuse to carry one out because it expects you to be above the threshold.
The house, and the 12 weeks
Why a care home counts your house when care at home never does
For care at home the value of your house never enters the financial assessment while you live in it. For a permanent care home place, the council leaves it out for the first 12 weeks so you have time to decide what to do, and after that it can be added to your capital unless it is still somebody's home in a way the rules protect.
Who has to still be living there for the council to leave the house out
0 of 7 ticked
The council must disregard it if this person lives there
Worth checking beyond that list
The 12-week disregard runs once, from the date you become a permanent resident, and it does not restart if you move between care homes. A short respite stay does not use it up. When the house is counted, it is valued at what it would sell for on the open market, less any outstanding mortgage and less 10% for the costs of selling it, so the figure the council uses is usually noticeably below an estate agent's headline asking price. Care at home or a care home sets the two settings side by side if that choice is still open, and what care costs at home gives the fuller picture on price once you know which one you are planning for.
Paying without a quick sale
If a care home is the plan and the money is in the house
A deferred payment agreement lets the council pay some or all of the fees on your behalf and recover the money later, secured against the house, rather than forcing a sale inside the 12 weeks. It suits people whose income and other savings cannot cover the fees but who own a home worth more than they owe. With a residential place costing in the region of £1,160 a week, and a nursing place closer to £1,410, few families can meet that from income alone once the savings under the threshold are gone too.
- 1
Check you qualify
Before the 12 weeks endA deferred payment agreement is for a permanent care home place, and normally needs your other savings, not counting the house, to be under £23,250. Ask adult social care for one alongside the financial assessment, ideally before the property disregard runs out. - 2
The council takes a legal charge on the house
At the startIn exchange for paying the fees, the council registers a charge against the property, in the same way a mortgage lender would. You keep ownership, and nobody has to move out or sell while you are alive unless you choose to. - 3
Interest builds from day one
A capped, variable rateThe debt grows by a rate of interest the government sets and reviews every quarter, so it can change during the life of the agreement. Councils can also charge a setup and administration fee, usually added to the loan rather than billed upfront. - 4
Get the agreement in writing before you sign
One documentIt should state the interest rate, any fees, and the maximum the council will lend against the house. Ask what happens if the house is worth less than expected when it is eventually sold. - 5
It is repaid when the house is sold
During your lifetime or from the estateMost people repay a deferred payment agreement when the property is sold, whether that happens while they are alive or afterwards, from the estate. There is normally no penalty for repaying it early if a sale happens sooner than expected.
When the money runs down
What to do as your savings fall towards the council's help
Self-funding is not usually a permanent state. Care is expensive enough that many people's capital falls towards the threshold over time, and the point to act is before it gets there, not after.
- Any time
Ask for a care needs assessment regardless of savings
It is free and does not depend on what you have in the bank. It creates a written record of eligible needs, and it is the same assessment the council will use later if your capital falls under the threshold, so there is nothing to redo.
- About three months before the threshold
Ask for a financial assessment before you get there
Ring adult social care when savings are approaching £23,250, not after they cross it. The council's contribution starts from the date of its own assessment, and the guidance expects it to be prompt but sets no fixed number of days, so asking early closes the gap.
- Even while you are still a self-funder
You can ask the council to arrange your care, and still pay for it yourself
The Care Act gives self-funders the right to ask the local authority to find and arrange a care home place, paying the fees privately. Some councils charge for this, but it can be worth it, because it gives access to the rate the council negotiates rather than the higher rate some homes quote a family arranging directly.
- Once your capital falls under the threshold
A top-up may be needed for a pricier home
Once the council starts contributing, keeping a home that charges more than the council's usual rate normally means a relative or friend pays the difference under a separate written agreement.
Publicly funded care explained covers how a top-up fee works and who is allowed to pay it, and local authority funding walks through the financial assessment itself, line by line, for care at home.
Getting the price and the advice right
Making self-funded money go further, and getting it protected
Paying for yourself gives you the widest choice of care, but it also means nobody is checking the price on your behalf. A few habits and a little advice, taken early, protect the money for longer and avoid decisions that are difficult to reverse once they have been made.
Ask what a self-funder pays against what the council pays
An immediate needs annuity
A SOLLA-accredited financial adviser
Questions
Questions families ask about self-funding
It means your savings and other capital, not counting your home in most cases, come to more than £23,250 in England, so the council will not contribute towards the cost of your care and you pay the full amount yourself. You are still entitled to a free care needs assessment either way. How the means test works in full.
It depends on the setting. For care at home your house is never counted while you live in it, at any level of savings. For a permanent care home place it is disregarded for the first 12 weeks and can be counted after that, unless a partner, a relative aged 60 or over, a disabled relative or a dependent child under 18 still lives there.
An arrangement where the council pays some or all of your care home fees and takes a legal charge on your house instead of requiring an immediate sale. It is normally only available once your other savings, not counting the house, have fallen under the upper capital limit. Interest is charged at a capped rate the government reviews every quarter, and the debt is normally repaid when the house is eventually sold, during your lifetime or from your estate.
No. You have at least the 12-week property disregard before the house is counted at all. After that, a deferred payment agreement lets the council pay the fees as a loan secured against the house, so you are not forced to sell in a hurry, though the house is now counted and interest accrues on the loan until it is repaid.
Ask for a financial assessment before your savings reach the threshold, not after, since the council's contribution starts from its own assessment rather than backdating to the day your capital crossed the line. Once assessed, the council contributes on a sliding scale down to £14,250, below which capital is ignored entirely. Asking for a financial assessment.
Yes. You can ask for a care needs assessment at any point regardless of savings, and you can ask the council to find and arrange a care home place for you even while you pay the fees yourself, which can give you access to a lower negotiated rate than arranging it privately. Some councils charge for arranging it this way.
It depends on your health, your age and how much certainty you want. An immediate needs annuity turns a lump sum into a guaranteed, tax-free income for life, paid to whichever registered care provider you use, whether that is a care home or care at home, so the cost cannot outlast the money. The price varies a great deal between individuals. A SOLLA-accredited financial adviser can compare it against a deferred payment agreement or simply drawing down savings for your own circumstances.