If you live in your house, then those assets are excluded. You get to live in your house.
You may want / need to give this AI overview a read, while there are exemptions the way i'm reading this is that for many they will need to sell to pay albeit the payment may be deferred so when whoever is still living in the house such as a partner finally dies
You do not necessarily have to sell your home to pay for care. While your property is usually included in the financial assessment for residential care, you can avoid a sale through deferred payment agreements, using other assets, or if a partner/dependant still lives there.
Key Factors and Alternatives
12-Week Disregard: The value of your home is not included in the financial assessment for the first 12 weeks of permanent care, allowing time to make arrangements.
Deferred Payment Agreement (DPA): The local authority pays your care fees, and the loan is repaid when your house is eventually sold or from your estate.
Exemptions (Disregard): The house is not counted if your partner, a close relative over 60, or a disabled relative continues to live there.
Other Funding Options: You might use income, savings, rent from the property, or equity release to cover costs.
When is a Sale Necessary?
If you have moved permanently into a care home, have assets (including property) over the threshold (e.g., £23,250 in many cases), and no exemptions apply, you will likely need to use the proceeds of the house to fund your care
Without getting into politics someone did say a few years back that they were going to sort this out but it never happened
