When a loved one is at the point of needing extra help at home one of the first considerations that comes up is how will we pay for it? The benefits of arranging care at home are huge and will help maintain independence and keep them comfortable in their own surroundings, but the cost can feel overwhelming to negotiate.
However, there are a variety of funding options available in the UK. It is important you understand what is available in terms of the options for financing care as it will remove some of the stress and confusion during what is already an emotional time.
This guide is an invaluable tool to enable you to navigate through the ways to fund home care, what help might be available, and how to make informed decisions that suit both your loved one’s needs and your family’s budget.
Everyone’s situation is different; some people only require a minimal amount of hours of care a week, while others may need round-the-clock support. Costs can also vary based on where you live, the type of care that will be needed, and whether the support is provided by an agency or a private carer.
By taking the time to fully explore funding options, you can avoid paying more than necessary, ensure your loved one receives the correct level of care, reduce stress and uncertainty for the whole family, and plan for the long term rather than making rushed decisions when a crisis such as a fall or hospitalisation occurs.
Your first step in finding out what funding might be available is to contact your local council and request a Care Needs Assessment. This is a free assessment that assesses your loved one’s daily living needs, what support would help them stay safe and independent at home and whether they qualify for any local authority support.
The council will then conduct a Financial Assessment (sometimes knows as a means test) to see if your loved one is eligible for funding or if they need to self-fund.
If the financial assessment shows that your loved one has savings and assets below the current threshold (£23,250 in England), they may be entitled to some funding from the local council.
Depending on the outcome of the assessment there are three possible results:
Fully funded care : The council is responsible for paying for the home care in full.
Part-funded care: The council contributes towards some of the cost, and your loved one pays for the rest.
Self-funded care: If savings or income are above the threshold, your loved one will need to pay for their entire care themselves.
Remember, even if your loved one is not eligible for financial help, it is still worth having the assessment done. The council can give you a care plan and advice on approved care providers, which can be helpful when arranging support privately.
For people with significant health needs, there is an option called NHS Continuing Healthcare (CHC). This is a package of care arranged and funded entirely by the NHS.
Eligibility is based not on income but on health needs, so it is worth enquiring about this if your loved one has complex medical requirements. The assessment for CHC is based on mobility, cognition, medication, and the complexity of care that will be required.
If your loved one is over 65 and needs help with personal care, they may be entitled to Attendance Allowance, which is a non-means-tested benefit. This is a benefit that is paid weekly and can be used towards the cost of care.
Other benefits your loved one might be entitled to:
Personal Independence Payment (PIP) – for those under 65 with care needs.
Carer’s Allowance – for someone providing regular unpaid care.
Pension Credit – which can top up income and make other support available.
It is always worth exploring these benefits even if you are arranging and paying for care privately, as they can significantly offset the cost.
If your loved one does not qualify for any local authority funding, you will have to explore self-funding their care. This can feel daunting, but there are ways to make it manageable.
People use various methods to self-funding home care include using savings, particularly for short-term or temporary needs, drawing on private and state pension income to cover ongoing costs, or, if the person owns their home, considering options such as using an equity release product to free up funds. In this case it is vital to always seek professional financial advice. For some families, the cost of care is shared between relatives, making it a joint effort to support their loved one’s needs.
If your loved one is eligible for local authority funding, they may be offered Direct Payments. This means the money is paid directly to them, or you can choose a nominated person. These payments allow people to arrange their own care, rather than the council doing it on their behalf. This type of funding gives more choice and flexibility; for example, you can choose a specific care provider like Sana Carers or even employ a personal assistant directly.
Another consideration could be to contact charities and non-profit organisations. Some charities offer grants or financial help for specific conditions, such as dementia or Parkinson’s disease. Others may provide free equipment or respite care. It is always worth exploring all options as a bit of research can go a long way in finding additional support.
Organisations who may help include:
Age UK
Macmillan Cancer Support
Parkinson’s UK
The Carers Trust
While funding is an important part of the picture, the real goal is knowing your loved one is getting the care they need and that you have a care plan in place. This will give you peace of mind and your loved one dignity, independence and a better quality of life. It also provides family members with reassurance and a much-needed break from the demands of caring.
At Sana Carers, we understand that arranging home care can feel overwhelming, which is why we are here to make the process as simple and reassuring as possible. We provide compassionate, professional carers you can trust, offer flexible packages tailored to your loved one’s individual needs, and give clear guidance to help you explore your funding options. Whether you are just beginning to research care or ready to put a plan in place, we will support you every step of the way.
Taking the time to understand your funding options now can save you stress and money later. It means you can focus on what really matters, helping your loved one feel supported, safe, and valued in the comfort of their own home.
