The UK's legal position on paying for care
In the UK, the legal responsibility for paying for residential care falls on the individual who needs the care. This is a crucial starting point that many families misunderstand. There is no legal obligation for a person's children, or any other relatives, to contribute financially to their care home fees. This principle is governed by legislation such as the Care Act 2014 in England, with similar provisions in Scotland, Wales, and Northern Ireland.
How the financial assessment (means test) works
Before any financial responsibility is assigned, a local authority conducts a care needs assessment to establish if residential care is required. If it is, a financial assessment (or means test) is then performed to determine how much the individual must pay towards their care. The assessment looks at the person's income, savings, and assets, including their home in some circumstances. Importantly, the financial assessment does not include the assets or income of their children or other family members.
Financial Assessment Thresholds in England (2025/26 rates)
- Capital over £23,250: If an individual has capital above this upper threshold, they are expected to pay the full cost of their care as a 'self-funder'.
- Capital between £14,250 and £23,250: The local authority will provide some financial support, but the individual is expected to contribute from both their income and a 'tariff income' based on their capital within this band.
- Capital below £14,250: The local authority will provide financial support towards the cost of care, with the individual contributing a portion of their income (pensions, etc.), but their capital is disregarded.
Deprivation of assets: The council's watchful eye
Concerned about high care costs, some families consider giving away assets, such as a property, to their children to avoid paying care home fees. This is known as 'deprivation of assets', and local authorities are trained to look for it. If a council believes that assets were intentionally gifted away to avoid paying for care, they can assess the individual as if they still owned the asset. This can lead to the individual being liable for care fees they no longer have the money to pay, creating significant financial and legal problems.
The role of joint assets and Power of Attorney
Having joint assets with a parent, such as a bank account or property, can have complex implications. In a financial assessment, jointly held savings are typically split equally unless evidence proves otherwise. Similarly, if you are a joint owner of the family home, its value may still be taken into account for the parent's assessment, though often disregarded if a dependent relative or partner continues to live there. A person with a Lasting Power of Attorney for Finance manages the parent's finances but is not personally liable for their debts. Their duty is to use the parent's funds responsibly to pay for care.
Third-party top-ups and guarantor agreements
While not legally required to pay, children may choose to contribute to their parent's care. One common scenario is a 'third-party top-up fee'. If a parent requires a more expensive care home than the local authority is willing to fund, a family member can agree to pay the difference. This is a voluntary but legally binding commitment. It is crucial to understand that signing a guarantor agreement with a care home makes you personally and legally liable for the fees if your parent cannot pay. You should never sign such an agreement without a complete understanding of the financial commitment involved.
Comparison of care funding rules across the UK
Care funding rules, including the financial thresholds and support available, vary depending on which nation of the UK you live in. Below is a comparison of some key differences.
| Feature | England | Scotland | Wales | Northern Ireland |
|---|---|---|---|---|
| Upper Capital Limit | £23,250 | £35,000 | £50,000 | £23,250 |
| Lower Capital Limit | £14,250 | £21,500 | None | £14,250 |
| Personal Care Costs | No automatic free personal care | Free personal care (for over 65s) | No automatic free personal care | No automatic free personal care |
| Nursing Care Costs | Covered via NHS-funded nursing care payment | Free nursing care | Covered via NHS-funded nursing care payment | Covered via NHS-funded nursing care payment |
Inheritance and care home fees
Many people are concerned that care home fees will deplete their parents' estate, reducing their inheritance. This is a real possibility. When a person dies with outstanding care home fees, the debt must be settled by their estate before any remaining assets are distributed to beneficiaries. This is why care home fees can significantly reduce or even eliminate an inheritance. The [Age UK website](https://www.ageuk.org.uk/information-advice/care/paying-for-care/) offers detailed resources on understanding the costs and the financial assessment process.
Outstanding fees and after death
Any outstanding care fees at the time of a parent's death must be paid from their estate. As the next of kin, you are not personally liable for this debt unless you have voluntarily signed a guarantor agreement. If a Deferred Payment Agreement was in place with the council, the council will recover the amount owed from the sale of the deceased's property. The executors of the will are responsible for settling all debts of the estate, including care home fees, before distributing the inheritance.
Conclusion: Your legal position is clear, but be cautious
In summary, children in the UK are not legally required to pay for their parents' care home fees. The primary responsibility rests with the person needing care, and a financial assessment will determine their contribution. However, this does not mean children have no part to play. Being aware of the rules around third-party top-ups, guarantor agreements, and deprivation of assets is vital to protect both your parent's assets and your own financial well-being. It is always wise to seek independent financial advice when navigating the complex and emotionally charged process of arranging elderly care.
