No, you don't have to use up all of your savings before the local authority will contribute to care home fees. If savings drop below £23,250 they may still contribute, depending on income: In England, there are two capital threshold limits: Upper threshold (limit) – If the financial assessment shows that your capital is above the upper threshold (£23,250), you will be expected to pay all your own care home fees. Lower threshold – If your capital is below the lower threshold (£14,250), the local authority will pay some of your care home fees If your capital is under the lower threshold, then your income will be used to pay for your care, provided you are left with a minimum amount, known as a ‘personal expenses allowance’ (PEA). If your capital is between the two thresholds, the local authority may start to contribute towards the care home fees, depending on your income. You must still be left with your PEA. A person with assets between the two capital limits will pay what they can afford from their income, plus a means-tested contribution from their assets (calculated as £1 per week for every £250 of capital between the capital limits).