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Lifetime Care


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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.

Means test limits with effect from April 2007
  England Wales Scotland Northern Ireland
Upper Means Test Limit £21,500 £22,000 £20,750 £21,500
Lower Means Test Limit £13,000 £17,250 £12,500 £13,000

The means test limits are increased in April each year in England, Wales and Northern Ireland.

Assets and Savings - what is included / excluded?

Generally speaking all of your assets will be included in the means test. If assets are owned jointly then the value will be shared equally among the owners but only the value of your own share can be included in the means test.

If you are moving into a care home permanently then the value of your house will be disregarded for the first 12 weeks or if it is occupied by:

  • A partner or spouse
  • A relative who is aged 60 or over
  • A relative with an incapacity
  • A dependant child under the age of 16

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.

Local Authority financial contribution for Care Home residents
Value of Assets, Savings and Investments Expected Contribution
Up to lower means test limit Income, less the Personal Expense Allowance, will be assessed and topped up to the Local Authority fee scale.
Between means test limits Income plus an amount of tariff income, less the Personal Expense Allowance, will be assessed and topped up to the Local Authority fee scale.

Tariff income is calculated as follows: For every £250, or part thereof, in assets held above the lower means test limit, £1 per week will be added to the income calculations.
Over upper means test limit Local Authority financial assistance is not available.

Please note that long term care insurance products cannot be purchased through this site. Lifetime Care Products are only available via financial advisers.

The address for written communication is AXA, PO Box 1810, Bristol BS99 5SN.

AXA Sun Life plc is the provider of the Lifetime Care range of plans. Head Office: PO Box 1810, Bristol BS99 5SN. Tel 0845 30 30 430. Facsimile 0117 989 0202. Minicom 0845 603 0803. Website www.lifetimecare.co.uk AXA is a worldwide insurance group. In the UK one of the companies is AXA Sun Life plc. Authorised and regulated by the Financial Services Authority. (www.fsa.gov.uk/register). AXA Sun Life plc is a company limited by shares, registered in England No 3291349. Registered office: 5, Old Broad Street, London EC2N 1AD. As part of our commitment to quality service, telephone calls may be recorded.

The information contained within this website is intended for UK residents only.