R05 Means testing, the home and deprivation: free practice questions

1. Question 1 of 5

   In England for 2026/27, what are the lower and upper capital limits used in local authority care means testing?

   Option A: £20,000 and £100,000Option B: £23,250 and £50,000Option C: £6,000 and £16,000Option D: £14,250 and £23,250

   Show answer

   The answer is D: £14,250 and £23,250

   In England the lower limit is £14,250 and the upper limit £23,250. Other UK nations use different thresholds, for example £50,000 for residential care in Wales.

   Why the other options are wrong

   A

   £100,000 was a proposed threshold that was never introduced.

   B

   £50,000 applies to residential care in Wales, not England.

   C

   £6,000 and £16,000 are the thresholds for means-tested benefits, not care funding.

2. Question 2 of 5

   Which of the following is NOT normally taken fully into account as income in a care means test?

   Option A: Attendance AllowanceOption B: Earnings from employmentOption C: Withdrawals from an investment bondOption D: Pension income

   Show answer

   The answer is B: Earnings from employment

   Earnings from employment or self-employment are fully disregarded. Pension income, State benefits including Attendance Allowance, trust and investment income, and bond withdrawals are taken into account.

   Why the other options are wrong

   A

   Attendance Allowance is taken into account.

   C

   Withdrawals from an investment bond are taken into account as income.

   D

   Pension income is taken into account in full.

3. Question 3 of 5

   Pat moves permanently into a care home. In which situation would the value of her home normally be disregarded?

   Option A: Her 35-year-old son who works full-time moves inOption B: The house is empty but her furniture remainsOption C: A lodger who pays rent lives thereOption D: Her husband continues to live there

   Show answer

   The answer is D: Her husband continues to live there

   The home is disregarded where a partner, a relative aged 60 or over, a child under 18 or an incapacitated relative lives there as their main home. Local authorities have discretion in other cases.

   Why the other options are wrong

   A

   A working 35-year-old son doesn't fall within the mandatory disregard.

   B

   An empty house with furniture isn't disregarded after the first 12 weeks.

   C

   A paying lodger isn't one of the qualifying occupants.

4. Question 4 of 5

   Rose gives £60,000 to her children when she already knows she will soon need residential care. Her remaining capital is £10,000. How is the local authority likely to assess her?

   Option A: The gift is ignored because it was made more than six months beforeOption B: As holding notional capital, so she may be treated as able to pay in fullOption C: Her children become legally responsible for paying all of her feesOption D: As having just £10,000, since the gift has already been made

   Show answer

   The answer is B: As holding notional capital, so she may be treated as able to pay in full

   Under the deliberate deprivation rule, capital given away to avoid care fees is treated as notional capital. With it counted, her capital exceeds £23,250, so she may be assessed as self-funding. There is no legal six-month time limit.

   Why the other options are wrong

   A

   There's no six-month time limit under the Care Act 2014.

   C

   Children aren't made legally liable for a parent's care fees in this way.

   D

   The deprivation rule can treat the gift as if she still had it.

5. Question 5 of 5

   Clive rents his home and has £40,000 of savings. He needs to move permanently into a care home in England. How will his care be funded at first?

   Option A: The NHS pays, as he needs residential careOption B: He pays his own fees until his capital falls to £23,250Option C: He pays only once his capital falls below £14,250Option D: The local authority pays in full, as he doesn't own a home

   Show answer

   The answer is B: He pays his own fees until his capital falls to £23,250

   With capital above the £23,250 upper limit, he is expected to self-fund. Once his capital falls to that level, the local authority assesses him, with tariff income on capital between £14,250 and £23,250.

   Why the other options are wrong

   A

   The NHS pays in full only where the primary need is health-based; residential care is means-tested.

   C

   He pays in full above £23,250, not only below £14,250; tariff income applies in between.

   D

   Not owning a home doesn't mean free care; his £40,000 of savings is above the upper limit.

R0 Exam Prep is an independent revision tool. It is not produced, endorsed by or affiliated with the Chartered Insurance Institute (CII). Questions and explanations are original. Use it alongside the official study text. About R0 Exam Prep