The cost of care can be a major concern for many families, and understanding what financial support is available may mean the difference between engaging the care you want or not.

With care costs rising and eligibility criteria often confusing, knowing your options is crucial.

Who Pays for Care?

Care can be funded in different ways, depending on your circumstances:

• Self-Funding

If you have savings or assets above a certain amount (currently £23’250), you may be required to pay for care yourself. This means covering the full cost of care services, whether at home or in a care home.

Many people use personal savings, pensions, or proceeds from selling a property to fund their care. It is important to seek financial advice, as there may be ways to structure your assets to make care more affordable.

• Local Authority Funding

If your savings and assets are below the financial limits set by the government, your local council may contribute to your care costs.

The council will assess your care needs and finances to determine how much, if any, support you qualify for. You may be required to contribute part of the cost, depending on your income and capital.

Some councils offer direct payments, allowing you to arrange your own care rather than using council-arranged services.

• NHS Continuing Healthcare (CHC)

For those with primary ongoing healthcare needs, the NHS may fully fund care through Continuing Healthcare (CHC). This is available if you need care due to a primary health condition that is complex, intense or unpredictable in nature, rather than just personal or social care needs.

Eligibility is assessed through a detailed review of your medical and care needs, and if you qualify, the Integrate Care Board (local NHS) will cover the full cost of care in a home, nursing home, or care home setting.

• Benefits & Allowances

Several benefits can help pay towards care costs, especially for those with low income or disabilities.

How does the Council assess care needs?

Adult Social Care or Social Care services are provided by the Local Authority and help you if you need practical support because of illness or disability and/or care for someone.

You can arrange your own care and support without the Council being involved but this may mean that they do not make a financial contribution and you may be missing out on FREE services.

Types of social care and support may include:

• care and support at home
• hot meals
• Laundry
• Aids and Adaptations to the home
• Equipment and household gadgets
• personal alarms and home security systems
• access to different types of housing, such as sheltered housing and care homes

Adult Social Care Assessment

You can arrange care and support privately yourself but if you want the council to arrange or pay towards your care an assessment of your need will be required.

The needs assessment will help to form a ‘Care Plan’ that tells you what type of care will meet your eligible need and how much it would cost the Local Authority (Personal Budget) if they are required to or choose to arrange the care and support needed.

Find your Local Authority  to request a Care Needs assessment

The Local Authority can do an assessment of your care needs (FREE) and are often able to help with other services such prevention and support services that could include help with the garden, getting a pendant alarm or an advocate who may be able to do things like organise a tradesman, write a letter or ring a utility company.

Find your Local Authority to request a Carers assessment

This is different to a care needs assessment as it looks at what care and support is being provided, by who and what support they may need to enable them to continue. It is especially valuable if for any reason the carer isn’t able to provide this whether temporarily for example a hospital stay or because you may need more help that they can manage.

To determine whether you qualify for financial help, the local authority will carry out a means test (following a care needs assessment). In 2025, the thresholds are:

• England:
  • If you have over £23,250 in savings, you will be considered a ‘self-funder’ able to fund your care.
  • If you have between £14,250 and £23,250, the council will apply a tariff income to savings between these amounts and may make a financial contribution
  • Below £14,250, these savings will not count, and a financial contribution will be assessed on income alone.

LA Circular – charging for adult social care 2025 /2026

Funding levels also apply in Wales, Scotland, and Northern Ireland, though rules may vary slightly.

What Benefits Can Help with Care Costs?

There are several benefits that can help towards care expenses, some are not means tested:

• Attendance Allowance – For those over pension age who need help with personal care or supervision (non means tested)
• Personal Independence Payment (PIP) – For people under pension age needing assistance with daily living or mobility (non means tested)
• Carer’s Allowance –Carer’s Allowance supports those providing unpaid care to a loved one, providing you are caring for more than 35 hours per week and not earning above an amount reviewed annually.

• Pension Credit

  – A top-up for those on a low pension income, which may help with care costs.

• Council Tax Exemption – Some people receiving care at home may qualify for reductions or exemptions. Pension Credit can help those on a low pension income, and Council Tax Exemptions may apply if you have moved into a home or are living with a severe mental impairment. Reductions may apply if you have a low income or need a wheelchair indoors.

Click here to find out how much these benefits will be per week if you qualify

In April 2025 these rates will increase. Click here for the 2025/26 benefit rates card

What If You’re Struggling with Care Costs?

If you don’t qualify for full funding and are struggling to afford care, there maybe other options:

• Deferred Payment Agreements – If you own property and are moving into permanent care, your council may allow you to delay care home fees until your home is sold, providing it isn’t already otherwise disregarded, for example if your partner is living in it.
• Charities & Grants – Some organisations and ex employers may offer financial help to those in need.
• Direct Payments & Personal Budgets – If eligible, you may receive money to arrange your own care rather than using council services.
• Independent Financial Advice – A care funding specialist can help you explore the best options for your situation.

Get the Right Support

Understanding care funding can be complex, but you don’t have to navigate it alone. Care Navigators can help you assess your options and ensure you receive all the support available to you.