How to Pay for Care

While social care is generally a paid service, many people are eligible for financial support. Depending on your circumstances, your local council may cover some or all of your care costs. To determine if you qualify for this help, the council will conduct a financial assessment.

Accessing council support starts with a Care Needs Assessment. This is the first essential step to determine if your requirements meet the national standards for ‘eligible needs.’ Once it’s confirmed that you qualify for support, the council will then conduct a financial assessment to see how much they can contribute toward your care costs. While many people contribute to their care costs, this assessment ensures that the financial burden is calculated fairly based on your individual circumstances.

Find your local council here, to book your free care needs assessment. 

If you’re arranging home care or moving into a care facility, understanding the costs is an important first step. A financial assessment is used to calculate exactly how your care will be funded and what your personal contribution might be.

During a financial assessment, the council reviews your income (pensions and benefits) and your capital (including any savings or investments). This evaluation determines two things:

1. If you qualify for financial support from the council exactly
2. How much your personal contribution toward your care will be.

The financial assessment is a straightforward look at your finances to see if you qualify for help with care costs. The council will look at your income (pensions and benefits) and your capital (savings and investments).

The rules for the assessment change depending on where you receive care:

• Staying in your own home: If you are arranging help at home or a short-term stay in a care home, the value of your house is not included in the assessment.

• Moving to permanent residential care: The value of your home is usually considered. However, there are “property disregards”—meaning your home is ignored if a spouse, partner, or certain relatives still live there.

Not all income is treated the same during a financial assessment. While most income (like pensions) is included, certain disability benefits are often excluded from the calculation.

Maximizing your income is a vital part of planning for care. Because the council’s ‘means test’ factors in all the benefits you are entitled to, regardless of whether you’ve claimed them yet. We recommend a full benefits check to ensure you’re receiving every penny of support available.

Once the financial assessment is complete, the local council must provide you with a written breakdown of their decision. This report will clearly show your personal contribution, the council’s share, and the exact calculations used to reach these figures. Your specific costs are determined by the type of care required and your individual financial situation.

Once your assessments are complete, the council will set a Personal Budget. This is the amount they believe is necessary to meet your needs. If you find a home you prefer that costs more than this budget, you can still choose it, provided a third party (such as a family member) agrees to pay the difference. This is known as a top-up fee.

A top-up fee must be paid by a third party, typically a family member, friend, or charity, rather than the person receiving care.

We strongly recommend seeking independent financial advice first to ensure you’ve considered how future fee increases or a change in your own financial situation might affect your ability to maintain these payments over time.

If you are arranging for carers to visit you in your own house, or if you are only staying in a care home for a short-term or temporary respite stay, your home is not included in the financial assessment. Its value will be completely ignored, regardless of its worth.

If you’re moving into a care home, the value of your home may be included in the financial assessment. However, it is usually disregarded if a spouse or another qualifying relative continues to live there.

Understanding how to pay for care depends on your financial situation and your specific health needs. Generally, funding falls into one of three categories:

1. Self-Funding
2. Local Authority Funding
3. NHS Funding (Health-Based)

You are considered a self-funder if you have the means to pay for your own care.

• The Threshold: You have savings or assets (capital) valued at over £23,250.

• Property: In most cases, if you own your home and are moving into permanent residential care, its value will put you over this threshold.

• Your Role: You are responsible for finding, arranging and paying for your own care services.

However, you are still entitled to a free Care Needs Assessment from the council to help identify what support you need.

If your capital is limited, the council provides financial support to ensure your needs are met.

• The Threshold: Your total savings and assets are below £23,250, and you typically do not own a property (or your property is “disregarded” because a partner still lives there).

• The Contribution: While the council pays the provider, they will perform a financial assessment to work out how much of your weekly income you must contribute toward that cost.

In some cases, the NHS is responsible for the costs, regardless of your savings or property ownership. This is based on health needs, not your financial situation.

• NHS Continuing Healthcare (CHC): For individuals with a “primary health need.” If eligible, the NHS covers the entire cost of your care and accommodation. It is free at the point of use.

• NHS Funded Nursing Care (FNC): If you live in a care home that provides nursing, the NHS pays a fixed weekly contribution directly to the home to cover the cost of the registered nursing care you receive.

If you require Nursing care, a Social Worker/Clinician will determine the level of nursing input that you will require in a nursing home. This may be Funded Nursing Care (FNC) if you have been assessed as needing Nursing Care in a Nursing Home. Your Clinical Commissioning Group (CCG) can arrange an assessment for you.