Paying for care in Liverpool: myths and facts

By · Published 2025-11-13 · Last reviewed 2026-09-18

A smiling older couple pose cheek to cheek in a sunny garden.
Photo: Stannah International, CC BY 2.0

Before a relative in Liverpool moves into care, check the facts: care is means-tested, the home is ignored for 12 weeks and while a partner lives there, giving assets away can be treated as deprivation with no seven-year rule, and NHS Continuing Healthcare is not automatic. Liverpool City Council must give information and advice, and a regulated specialist adviser can compare options.

Families in Liverpool often face care decisions in a hurry, and a lot of what gets passed around about care fees is wrong. The key facts are that social care is means-tested in England, the family home is protected in some situations, giving money or property away to avoid fees can backfire, and NHS funding depends on an assessment of health needs. Liverpool City Council carries out needs and financial assessments under the same national rules as the rest of England, and it must provide information and advice about paying for care.

This guide is general information. Where large sums or legal steps are involved, get personal advice before acting.

Myth 1: "The state pays for care once you are old."

Fact: NHS medical care is free, but social care, such as help with washing, dressing and living in a care home, is means-tested in England. After a needs assessment, the council carries out a financial assessment. For 2026 to 2027, people with capital above the upper capital limit of £23,250 usually pay the full cost. Below it, the council contributes, and the person still pays what they can from their income.

Myth 2: "The council will make us sell Mum's house straight away."

Fact: The home is not counted at all for care at home. For a permanent care home move, it is ignored for the first 12 weeks, and indefinitely while a partner, a relative aged 60 or over, or an incapacitated relative still lives there. If it does count, a deferred payment agreement lets the council pay the fees and recover them later, usually when the home is sold. The NHS guide to the financial assessment summarises these rules.

Myth 3: "If you give the house away seven years before, it is safe."

Fact: Seven years is an inheritance tax rule. For care fees in England there is no fixed time limit. If avoiding care charges was a significant reason for a gift, and the need for care was foreseeable, the council can treat the person as still owning the asset. This is called deprivation of assets, and Age UK explains how councils decide.

The statutory guidance lists transferring the title deeds of a property and putting assets into a trust that cannot be revoked as examples that may be deprivation.

Myth 4: "Dementia means the NHS pays."

Fact: A diagnosis alone does not decide funding. NHS Continuing Healthcare pays the full cost of care for people whose needs are mainly health needs, and is assessed by the integrated care board, starting with a checklist. Many people with dementia do not qualify, but some do, particularly when needs are complex, intense or unpredictable. Ask for a checklist assessment if needs are significant. See the NHS guide to continuing healthcare.

If your relative is in a nursing home and needs a registered nurse, the NHS pays a flat-rate contribution towards nursing care, whoever pays the rest.

Myth 5: "We have to accept whichever home the council picks."

Fact: You have the right to choose a care home that can meet your relative's needs. The council must offer at least one suitable option within its personal budget. If you choose a more expensive home, a relative or friend can pay a top-up fee under a written agreement. Nobody can be forced to pay a top-up.

Myth 6: "As next of kin, I can manage Dad's money."

Fact: Being next of kin does not by itself give legal authority over someone's finances. That comes from a registered lasting power of attorney, made while the person has mental capacity, or a deputyship order from the Court of Protection if they no longer do. The GOV.UK guide to lasting power of attorney explains how to make and register one. Doing it early saves time, cost and stress.

Myth 7: "Benefits stop when you go into care."

Fact: State Pension continues. Attendance Allowance is not means-tested and can continue for people paying all their own care home fees, though it usually stops if the council pays towards the fees. Pension Credit may still be payable. Check entitlement when circumstances change.

Myth 8: "Anyone who sells financial products can advise us."

Fact: Advice on investments, annuities or equity release for care should come from a financial adviser regulated by the Financial Conduct Authority, ideally one who specialises in later life and care fees. The Society of Later Life Advisers lists accredited advisers. Be wary of anyone selling a trust or scheme as a guaranteed way to avoid care fees.

Where can Liverpool families get advice?

A short checklist before care starts

  1. Ask Liverpool City Council for a needs assessment, and a carer's assessment for yourself.
  2. Gather statements for savings, pensions, benefits and property.
  3. Check whether anyone qualifying still lives in the home.
  4. Ask about NHS Continuing Healthcare if health needs are complex.
  5. Set up lasting powers of attorney if they are not in place.
  6. Get regulated advice before selling property, releasing equity or moving money.
  7. Read any care home contract carefully, including fee increases and notice periods.

Frequently asked questions

Does a partner have to sell the home if one of us goes into care?

No. The home is ignored in the financial assessment while a partner or spouse lives there. Only the resident's own capital is assessed.

Can we use savings to pay a top-up while the house is being sold?

In England, a resident can pay their own top-up during the 12-week property disregard or under a deferred payment agreement. Otherwise a third party must pay it.

Is free advice good enough?

Free guidance from the council, Age UK or Citizens Advice is a good start and explains the rules. For decisions about investing or releasing money, regulated advice gives you protection if the advice turns out to be unsuitable.

Do rules differ outside England?

Yes. Scotland provides free personal and nursing care payments, and Wales has a higher capital limit for care homes. Northern Ireland uses the same limits as England.

What if we disagree with the council's financial assessment?

Ask for a written explanation, provide evidence, and use the council's complaints procedure. You can then go to the Local Government and Social Care Ombudsman.

Key takeaways