the means test
Your Local Authority will use the national guidelines to take all your assets and income into account when they assess how much they will provide towards your care.
If your Local Authority decides care can be provided in your own home and you qualify for their help, you may still have to pay for Local Authority Services although they must always allow you to retain a certain level of income after they have made charges for care services.
If your Local Authority decides care should be provided in a care home and you qualify for their help, you will be expected to contribute all of your income towards the cost of your care although you will be allowed to retain a small amount called the Personal Expense Allowance. Local Authorities will always set a fee scale for their area. This is the amount they will not go beyond in paying for a care home place.
There are rules that prevent you from giving your money away or spending large amounts in order to benefit from means testing. Any money you get rid of in this way will usually be added back to the value of the investments you have left. There is no time limit after which this rule is not applied.
Income- what is included / excluded
If you are on your own then the Local Authority will expect you to contribute all of your income less the Personal Expense Allowance towards the cost of your care in a care home.
If you have a partner then the Local Authority will expect you to contribute all of your State Pension and at least 50% of any Personal or Company pensions you may have. The other 50% may be disregarded providing it is paid to your partner in order that they can afford to continue to live at home.