Paying for care at home raises lots of questions: what help is available, who is eligible, and how do you apply? Getting the financial side right can make home care affordable and sustainable while protecting a loved one’s independence and dignity. This guide explains the primary sources of funding: state benefits, NHS support, local authority help, and grants, so families can plan with confidence.
This guide follows the order families actually need: start with the care needs assessment, then explore local authority funding, self funding options, NHS support, and finally benefits and grants. As a UK domiciliary care provider, we help families navigate every step.
This blog focuses on provisions available in England. Schemes and benefits in Scotland, Wales, and Northern Ireland may vary.
The Care Needs Assessment
A Care Needs Assessment is the foundation of the entire social care system in England. It is the first thing every family should do, regardless of income, savings, or whether you expect to self fund. Without it, you cannot access local authority support, financial assessments, or many NHS pathways.
The Care Needs Assessment is a formal evaluation carried out by your local authority to understand your needs, health conditions, support network, living arrangements and how you’d like to be support. There is no charge for a care needs assessment, and it is available to anyone. A friend, family member or carer can ask for a care needs assessment on your behalf, with you permission; or acting in your best interests if you lack capacity.
This assessment could take longer to complete based on your individual needs and circumstances, as they may prioritise others requests first. Which is why this is an important first step, before arranging funding. Ensure to provide as much information as possible during this process.
After the care needs assessment, a care plan will be created, and a copy will be given to you.
Local Authority Funding & the Financial Assessment
Once the care needs assessment confirms that a person requires support, the next stage is the local authority financial assessment. Local councils have legal duties to assess people's care needs and, where eligible, organise and fund some care services. However, most council funding for ongoing care is means-tested: the local authority assesses income, capital (including savings and property), and other assets to determine how much it will pay towards care. The government regularly provides updates on capital limits and local authority charging guidance, informing families of the upper and lower capital thresholds that determine whether they are responsible for full or partial care costs.
What families should expect from a local authority financial assessment:
- An assessment of savings and capital (including the home in some circumstances).
- A calculation of disposable income and how much the council will expect the person to contribute.
- A personal budget or direct payment, where eligible, which can be used to buy home care services.
- Signposting to top-up arrangements or additional benefits that might increase affordability.
Financial means test
The total value of your capital dictates if you are eligible for local authority funding. For home care this is your income, including through earnings, benefits and pensions, and your savings.
In England the capital limits for home care are:
- Upper limit is £23,250 – if you have over this amount you will have to self-fund your care
- Lower limit is £14,250 – if you have under this amount the local authority will fund your care
- If you have more than £14,250 but less than £23,250, your care will be partially funded by the council and partially funded by you.
They must leave you with a Minimum Income Guarantee (MIG) — an amount set by the government to ensure you can still afford daily living costs such as food, utilities, and personal expenses.
If you have disability-related expenses (e.g., continence products, special diets, equipment), these can be deducted from your assessed contribution, reducing what you pay.
What you Receive if You Qualify for Funding
If the council agrees to fund some or all of your care, they will create a personal budget.
This is the amount they believe is needed to meet your assessed care needs.
You can receive this budget in two ways:
1. Direct Payments
You receive the money directly and arrange your own care. This gives you flexibility to choose your preferred domiciliary care provider.
2. Council-Arranged Care
The council arranges care on your behalf with one of their contracted providers.
Many families prefer direct payments because it allows them to choose a provider they trust, maintain continuity, and tailor the care package more closely to their needs.
Self-funding
If you do you qualify for funding through the local authority, then you will be classed as a self-funder meaning if you want care then you will have to pay privately for the costs of home care. Home care hourly rates vary by region and the level of support required. This ranges from basic companionship or personal care to specialist nursing-level support.
The local authority must still produce a care plan, offer advice and signposting, support you will information about local services and provide a financial assessment later if your saving fall below the threshold. You can also request a new assessment if you circumstance change.
Self-funding gives individuals full control over the choice of care provider, number of hours and type of support, the flexibility of the care plan and the ability to increase or decrease care quickly. Self-funders often appreciate the freedom to choose a provider that align with their values, offers continuity, and provides a personalised approach.
Property Based Options: Using Home Value to Pay for Care
If a person’s main asset is their home, some councils offer Deferred Payment Agreements (DPAs). A DPA lets the council pay care fees on the person’s behalf and recover the cost later, usually from the sale of the house after death or from the estate, so homeowners aren’t forced to sell immediately to pay care bills. This option can help preserve housing stability and give families time to plan; however, each scheme has specific terms, interest rates, administrative charges, and eligibility criteria, so discuss the details with your local council’s finance team. If you request information about Deferred Payment Agreements from your local authority, they must tell you how it works and what the advantages and disadvantages may be.
Organisations such as MoneyHelper and local authorities offer practical guides to DPAs for further information.
NHS Continuing Healthcare: when health needs are primary
NHS Continuing Healthcare (CHC) is free care funded by the NHS for people whose primary needs are health-related rather than social. This can cover care at home if a person’s needs meet the CHC eligibility criteria following a formal NHS assessment. CHC is awarded based on the intensity, complexity, and unpredictability of needs and can therefore remove a significant cost burden when it applies. Families should ask their GP, community nurse, or local NHS team to initiate a CHC checklist if they think the person’s healthcare needs are likely to be primary.
Benefits for the person who needs care: Attendance Allowance
Attendance Allowance is a non-means-tested benefit for people of State Pension age who require assistance with personal care or supervision due to illness or disability. It’s paid at two weekly rates, depending on care needs, and is designed to help cover the extra costs of needing help. If the person you care for is eligible, this payment can be used flexibly to support home care costs, paying for additional hours or services that help them remain at home.
The 2025/26 rates for Attendance Allowance are:
Lower rate £73.90 per week
Higher rate £110.40 per week
Financial support for unpaid carers: Carer’s Allowance and related help
Carer’s Allowance provides a weekly cash payment for people who spend a substantial amount of time caring for someone with significant needs. There are earnings limits and other eligibility conditions (for example, you generally need to provide at least 35 hours of care per week), and some payment rules interact with other benefits such as the State Pension. Carer’s Allowance can be an essential part of household finances and may sometimes be complemented by other means-tested benefits. Always check the latest earnings thresholds and interaction rules when applying. In 2026, you could get £86.45 a week for caring for someone for over 35 hours per week.
Grants, adaptations and one-off funding (Disabled Facilities Grant)
Making a home safer and easier to live in can reduce care needs (for example, installing a level-access shower or using a stairlift). Disabled Facilities Grants (DFGs) help with home adaptations and are administered by local authorities. The maximum grant levels and specific rules vary by nation and council, but DFGs can cover substantial adaptation costs that directly support independent living. Families should apply through their local authority’s housing or social care department.
Other targeted help: veterans, war pensions and mobility aids
Some people are eligible for additional support depending on their background or specific needs. Veterans may receive specialist payments or allowances (such as Armed Forces independence-type payments or constant attendance allowances), and other targeted schemes can help with mobility aids (Blue Badge), travel, or disability-related costs. It’s worth checking specialist organisations and veterans’ support charities for eligibility and application help.
How to combine funding stream sensibly
Many families use a mixture of benefits, local authority support, NHS funding (if eligible), grants and personal funds to pay for home care. It’s important to:
- Request a needs assessment from the local authority early. This triggers access to social care planning and financial evaluation.
- Apply for non-means-tested benefits (Attendance Allowance) that do not reduce eligibility for other assistance.
- Ask about CHC if health needs are significant as this can change the funding route entirely.
Practical Steps Families Should Take Now
If you’re planning or already arranging home care, these steps help avoid surprises and maximise available support.
- Get a formal needs assessment from the council (this is the gateway to social care support).
- Apply for Attendance Allowance (if age-eligible) and check for any other disability benefits that might apply.
- Discuss CHC with the GP or community nursing team if the person has significant health needs.
- Ask the council about DFGs and Deferred Payment Agreements if adaptations or home-value-based planning are needed.
- Keep an up-to-date list of all income, savings, property, and existing benefits to expedite financial assessments.
- Consider seeking professional guidance from welfare rights advisers, Age UK, Citizens Advice, or a specialist care-planning service to check for any overlooked entitlements.
Working with Professionals: Where to get help
If funding seems complex, there are both free and paid options available for support. Non-profit organisations (such as Age UK and Citizens Advice), local authority welfare rights teams, and independent financial advisers all have important roles to play. For some families, paying for a one-off specialist financial assessment or care fees advice can save money and stress in the long term.
When to consider paying privately and the realities of costs
Where state funding does not fully meet needs, many families combine benefits with private funds to top up hours or choose specific providers. Home care hourly rates vary by region and the level of support required. This ranges from basic companionship or personal care to specialist nursing-level support. When paying privately, always:
- Get a written care plan and clear invoicing.
- Discuss contingency (sickness or sudden care increases).
- Review the package regularly to ensure it maintains its value and quality.
Summary and Next Steps for Families
Funding home care in the UK is a multi-layered process: start with benefits for the person who needs care, check carer entitlements, pursue a local authority assessment, and inquire about NHS Continuing Healthcare if the health needs are substantial. Explore grants for adaptations and consider Deferred Payment Agreements, where property value is a central consideration. Use charities and local advisers for help with applications, and consider a trusted care provider to assist with coordination.
Start with this simple action plan:
- Step 1: Book a needs assessment with your local council.
- Step 2: Check eligibility for Attendance Allowance and Carer’s Allowance.
- Step 3: Ask the GP/community nurse about an NHS CHC checklist if health needs are complex.
- Step 4: Investigate DFGs and deferred payment options with the council.
Our compassionate care service regularly helps families through each step, including assessing needs, compiling paperwork, and liaising with councils, so arranging the proper funding and care is as straightforward as possible.
