Long-term care is one of the biggest financial challenges facing UK families. With people living longer, the likelihood of needing care is increasing, and the costs can be devastating without proper planning.
In 2026, the average annual cost of residential care in England is £52,000, while nursing care averages £72,000. In London and the South East, costs can exceed £80,000 per year.
The means test threshold remains at £23,250 in 2026. If your capital exceeds this amount, you are expected to fund your own care. Your home is included in the assessment unless a qualifying person still lives there.
The government's proposed cap on lifetime care costs has been repeatedly delayed. As of 2026, there is no cap in place, meaning care costs can continue indefinitely until assets are depleted.
Planning ahead is essential. Options include: Property Trust Wills to protect your share of the home, insurance-based products designed for care funding, and careful structuring of assets with professional advice.
It's important to act while you're healthy. Transferring assets when care is needed or foreseeable can be treated as 'deliberate deprivation' by the local authority, meaning you're assessed as if you still own them.
Lasting Powers of Attorney are also vital in care planning. Without them, your family cannot manage your finances or make care decisions if you lose capacity.
At Castle Family Legal, we take a holistic approach to care planning, incorporating Property Trusts, LPAs, and Wills. Contact us for a free consultation.
