Helping you navigate the costs of home care

How is social care funded in the UK?

There are several ways in which social care services are funded in the UK, from state-supported payments organised by your local council, NHS or Health and Social Care (HSC) Trusts (these manage and administer hospitals, health centres, residential homes, day centres and other health and social care facilities) to private funding or a mixture of all of these. Care recipients and caregivers may also be eligible for various benefits to go towards the costs of long-term health conditions and disabilities, or to help with everyday activities, getting around and medical care. We will go into detail about these later on.

Your or your loved one’s local council or local HSC Trust would need to carry out some assessments to determine what type of care and support would be most appropriate.

How much might home care cost?

Unfortunately, there’s no simple answer to how much care might cost. It very much depends on a number of factors, including you or your relative’s personal circumstances, how much care is needed, where you/they live, and so on.

How to check if you or your loved one qualifies for funding

The best way to find out if you or your loved one is eligible for financial support is to talk to your local council. Different local authorities have differing criteria for their assessments and some local councils and NHS regions may not provide funding for care at home. We work closely with local councils and can explain the various funding methods and procedures to you in further detail over the phone if it would help. Please fill out the form below and your local Caremark team will be in touch to help you.

If you are found to be eligible for funding support…

If you or your relative is found to be eligible for support from your/their local council or local HSC Trust, a social worker will guide you/them through the ways in which they can help. They will explain the methods of funding and paying for care options that are available. Some information about local council or HSC Trust funding methods can be found here.

If you will be paying privately, we will explain the different payment methods you can use if required. Please see our section on private funding for further details.

Sometimes a person’s family pay for their care. If this might be the case for you we can speak to them directly if you would prefer. Please just let us know: we are happy to take your lead.

State-supported payments

Applying for financial support with home care costs involves a few application forms. Unfortunately, we can’t complete these for you or your loved one, but in this section we’ll give you an overview of the process involved and help make it a little easier to understand.

Are you caring for someone else?

First things first, talk to your local council. They will probably want to arrange a carer’s assessment which is designed to see what might help make things easier for you and the person you care for. It’s a chance to discuss your needs with experts who will be able to decide how best to support you.

Are you looking for financial support for a loved one’s care at home or for your own care at home?

In some cases, you or your loved one may be able to receive partial funding for home care from your/their local council. In this instance a needs assessment is required to determine the level of need. Your or your relative’s local council will carry this out.

Financial assessment

If the relevant local council discovers that extra support at home is required for yourself or someone you care for, they will arrange a financial assessment to be carried out. This is essentially a financial means test to determine more about your or your loved one’s circumstances and find out what you/they can afford to pay. The local council will look at your or your loved one’s income and savings to work out how much can be contributed towards the cost of care and support. If you/they are being cared for at home the means test won’t take into account the value of your/their property (it would for residential care).

If you or your loved one lives in England or Northern Ireland and have assets of greater than £23,250, you’re/they’re automatically discounted for financial support for care at home. This figure differs slightly for Wales and Scotland. (Please note, this information was correct as of June 2020.)

If you are eligible for funding

If you or your family member or friend is found to be eligible for financial support, the local council, the NHS or HSC Trust will organise funding directly with us. Alternatively, you or your loved one can choose to receive direct payments and arrange and pay for the home care independently.

How much might we receive?

It’s unusual for people to receive full or majority funding due to a limited amount of money available for local council to allocate. This level of funding generally goes to those who live alone, have recently been discharged from hospital or can’t manage without care. Instead the council may agree to subsidise needs, such as home adaptations or rehabilitation.

Age UK has put together a fact sheet on personal budgets and direct payments. The Money Advice Service has a guide with more information on direct payments.

NHS continuing healthcare

If you or your relative needs a full-time carer for health reasons you/they may be entitled to NHS continuing healthcare, which includes full financing for any services that take place outside the hospital, covering personal care, nursing care and any costs related to household adjustments due to your health condition. This type of funding is only awarded after a full assessment with a multidisciplinary team of healthcare professionals. If it is given your family work collaboratively with a professional to create a bespoke care and support package.

In some cases, the NHS may decide to work with the related local council to cover the costs of care. This is known as a ‘joint package’.

Benefits for care recipients

There are two types of benefits available to help cover the costs of care. Personal Independence Payment (PIP) and Attendance allowance.

PIP goes towards the costs of long-term health conditions and disability for those under 65. It isn’t means tested and is organised by the Department for Work and Pensions (DWP).

The rates given are as follows and it requires filling out a form and attending a routine medical assessment during which, if eligible to receive PIP, it is decided which component you fall into. Head here for more information and to apply.

Attendance allowance helps cover the costs of care for those aged 65 and over. It isn’t means tested and is designed for those who need help with everyday activities, getting around and medical care.

To apply you need to fill in a claim form.

Benefits for carers

If you look after someone for 35 hours or more a week, you may be entitled to carer’s allowance.
Depending on your financial situation you could receive up to £62.70 a week. You can find out if you are eligible here.

If you look after someone for at least 20 hours a week, you may instead be entitled to National Insurance credits. More information can be found here.

This online benefits calculator will show if you are entitled to other means-tested benefits, including Income support, Income-related employment and support allowance, Jobseeker’s allowance, Pension credit, or Universal credit.

Self-funding care

If you or your family member are not eligible for financial support from your local council, the NHS or local HSC Trust you can pay for home care privately. Personal funding may also be required to supplement financial support from the Government. Before we start working together we will agree a clear payment structure. No fees will be hidden so you or your loved one knows what you need to pay upfront and in advance.

How much can you or your friend or relative expect to pay?

The cost of home care is very much dependent on personal needs and preferences. Our charges vary depending on the type and level of service which is provided.

Live-in care

Aside from the cost of the live-in care, you or your loved one may also need to factor in certain expenses to modify your home, including stair lifts and mobility aids, and you/they will also have to come to an agreement on a food budget to contribute towards the carer’s meals. Read our guide to Live-in Care for more details on this service.

In England you can use the Which? Cost of care calculator to get an estimate for care costs in your/your loved one’s area.

Specialist equipment

To give a very rough idea of how much you or your family member might want to budget for specialist equipment: handrails cost from around £50 each, stairlifts from around £900, and easy-access shower facilities from around £200, plus labour.

Although you or your loved one might not be eligible for state-funded care, you/they might still be able to obtain financial support for specialist equipment through the local council’s Occupational Therapy service. Speak to your GP practice about a referral or contact your local council to ask if you can receive this service.

Pensions, equity release and home reversion

Often people use savings and pensions to help pay for home care, but there are other ways. In general it is usually best to speak with a financial adviser to gain the correct information for these funding methods.

This Which? guide has more information about the various ways in which people privately fund care at home, including equity release, lifetime mortgages and home reversion.

FAQs about care funding

Does the NHS pay for home care or care homes?

The NHS will pay care costs for nursing care in your or your relative's own home (or in a residential care home) under certain circumstances. The Which? guide linked here will give you more information.

Can I get financial support to pay for my home care?

Aside from potential local council, NHS or HSC Trust support, there are a couple of extra benefits you might be entitled to: Attendance Allowance and Personal Independence Payment (PIP). Carers might be eligible for a Carer’s Allowance. These benefits aren’t financially means-tested, so they don’t take into account income and savings.

What is a power of attorney?

Power of attorney grants someone the right to make decisions about someone else’s money on their behalf. Age UK have put together this guide to how powers of attorneys work. They cost from £65 to set up and need to be registered with the Office of the Public Guardian.

How can I plan ahead for care in the future?

It might not be something you or your loved one feels like doing but a little financial planning can be very beneficial in terms of the future. The NHS has put together a couple of useful financial guides, including information about creating a lasting power of attorney and other legal issues.

Read about the legal issues for planning ahead here.
Read about creating a lasting power of attorney here.

Would you like further information?

Please fill out the form below and your local Caremark team will be in touch to discuss your needs and guide you through your options.