Care means test in Birmingham: capital limits explained
By CareFinder Team · Published 2025-11-13 · Last reviewed 2026-09-18
Birmingham City Council applies England's national capital limits. For 2026/27, people with more than £23,250 usually pay the full cost of care; between £14,250 and £23,250 they pay from income plus £1 a week for every £250 over the lower limit; below £14,250 capital is ignored. The home counts only for a permanent care home stay, with exceptions.
Birmingham City Council uses the national rules for England when it means-tests care. For 2026/27, a person with more than £23,250 in capital usually pays the full cost of their care. Between the lower limit of £14,250 and the upper limit they contribute from their capital and income, and below the lower limit their capital is ignored and they pay only from income. The value of their home counts only for a permanent care home stay, and even then there are important exceptions.
This guide explains how the means test works in Birmingham, what counts, and how to get an assessment. It is general information; for advice on your relative's situation, contact the council or an independent adviser.
Who carries out the means test in Birmingham?
Birmingham City Council's adult social care service carries out both parts of the process:
- A needs assessment, to work out what care and support your relative needs and whether they meet the national eligibility criteria.
- A financial assessment (means test), to work out how much they should pay towards that care.
The council's page on paying for adult care and support explains that most adult social care services are not free and need a financial assessment. It also offers an online tool to estimate your contribution before the full assessment is complete.
What are the capital limits for 2026/27?
The limits are set nationally for England by the Department of Health and Social Care. The government's charging circular for 2026 to 2027 confirms:
| Your relative's capital (upper limit £23,250, lower limit £14,250) | What usually happens |
|---|---|
| Above the upper limit | They pay the full cost of their care (a "self-funder") |
| Between the two limits | They pay from income, plus "tariff income" from capital |
| At or below the lower limit | Capital is ignored; they pay what they can afford from income |
Tariff income is the rule for capital between the limits: the council treats every £250 (or part of £250) above the lower limit as producing £1 a week of income. For example, capital £2,000 over the lower limit counts as £8 a week.
The limits have been unchanged for several years, but check GOV.UK or the council each April.
What counts as capital?
Capital includes savings, bank and building society accounts, cash, shares, bonds, premium bonds and property other than the home your relative lives in. Some things are ignored, including personal possessions and the surrender value of most life insurance policies.
If your relative has a joint account, the council normally treats them as owning an equal share.
Does the house count?
- Care at home: no. The home your relative lives in is never counted when they receive care at home.
- Care home, first 12 weeks: after a permanent move, the value of the home is ignored for 12 weeks.
- Care home, someone still living there: the home is ignored while it is lived in by a partner, a relative aged 60 or over, a disabled relative, or a child under 18. Age UK's guide to whether you have to sell your home lists these.
If the home does count and your relative has little other capital, Birmingham City Council offers deferred payment agreements, which the Care Act requires councils to make available. The council pays towards the care home fees and recovers the money later, when the home is sold or from the estate. Birmingham's deferred payment page sets out who can apply, including having assets below the upper limit, not counting the home.
How is income treated?
Most income counts, including State Pension, private pensions and most benefits. Some income is ignored, such as the mobility part of Personal Independence Payment.
The council must leave your relative with a minimum amount:
- At home: they keep at least the Minimum Income Guarantee, set nationally each year, to cover living costs, plus allowances for some disability-related expenses.
- In a care home: they keep a weekly Personal Expenses Allowance, which for 2026/27 is £31.80 a week according to the government circular.
What if my relative chooses a more expensive care home?
When the council arranges care, it must offer at least one suitable home within your relative's personal budget. If a more expensive home is chosen, the difference is a top-up fee, usually paid by a family member or friend. Birmingham's top-up payment page explains how this works. Only agree to pay a top-up if you can afford it for as long as your relative may live there.
What if savings are about to fall below the limit?
If your relative is paying for themselves, contact Birmingham adult social care before their capital falls to the upper limit. The NHS advises contacting the council about three months before savings are expected to drop below the limit, because council funding normally starts from the date you contact them.
Ask early whether their current care home accepts the council's rate, or whether a top-up would then be needed.
Can giving money away reduce the bill?
Not if the main reason is to avoid care charges. If the council decides someone deliberately reduced their assets to avoid paying for care, it can assess them as if they still had the money or property. This is called deprivation of assets. Get independent advice before making large gifts or transferring property.
Frequently asked questions
Does Birmingham use different capital limits from the rest of England?
No. The capital limits are set nationally and apply across England. Birmingham City Council has its own charging policy, which explains how it applies the national rules locally.
My dad has savings just above the lower limit. What will he pay?
If his capital is £750 above the lower limit, that counts as £3 a week of tariff income. The council adds this to his assessed income, leaves him his Personal Expenses Allowance, and works out his contribution. The council or an adviser can give an exact figure.
Is NHS continuing healthcare means-tested?
No. If your relative's needs are mainly health needs, they may qualify for NHS continuing healthcare, which is arranged by the NHS rather than the council and is not means-tested. Ask for a checklist assessment, especially around a hospital discharge.
How do I contact Birmingham adult social care?
Use the contact details on the council's adult social care pages. You can ask for a needs assessment for your relative, with their consent.
Where can I get free, independent advice?
Age UK, Citizens Advice and MoneyHelper offer free information on paying for care. For regulated financial advice on funding care, look for a specialist adviser authorised by the Financial Conduct Authority.
Key takeaways
- Birmingham applies England's national capital limits, which are unchanged for 2026/27.
- Between the limits, each £250 over the lower limit counts as £1 a week of income.
- The home is never counted for care at home, and has exceptions for care home stays.
- Deferred payment agreements and top-up rules are available through Birmingham City Council.
- Contact the council before savings drop below the upper limit.