Moving home to receive care at home for yourself or a family member is already stressful, and it becomes even more stressful to wonder who will cover the bills.
Eventually, each family asks itself the same question: will the council help, and if it won’t, what are the other options available?
The good news is that there is genuine support available. Local authority funding for care in your home has specifically been designed to help those who may need help or support with their day-to-day living, so they can continue leading as independent, safe, and comfortable a life as possible within their own surroundings without being moved into full-time residential care.
However, it is subject to a means test, a needs assessment, and a few rules that differ slightly depending on where in the UK you live.
This guide takes you through exactly how local authority funding works, who it is for, and what the best funding options for home care in the UK look like if you don’t qualify for full council support.
By the end, you will learn which funding route works best for your situation and how to initiate the process.
Key Takeaways
Everyone is entitled to a care needs assessment from their local council, regardless of income or savings.
Home is not usually counted in the means test for care received at home, unlike residential care, where property value can be assessed.
Other funding options include NHS Continuing Healthcare, Attendance Allowance, and Equity Release.
Direct payments let you manage your own care budget instead of relying solely on council-arranged services.
Applying early matters: requesting an assessment as soon as needs arise avoids delays and unnecessary costs.
Comparing providers with ComparedExperts before committing to a care package can make a significant difference in both cost and quality of care.
What Counts as Care In Your Home?
Care in your home, also referred to as domiciliary care or home care, covers any support that allows you to continue living independently at home instead of moving into a care home. It typically includes:
- Personal Care: Help with washing, dressing, and using the toilet.
- Medication support and reminders.
- Assistance with shopping, household chores, and meals.
- Mobility support and assistance with getting in and out of bed.
- Companionship visits and social support.
- Full-time live-in care (a carer moves in with you)
Support can range from daily visits to overnight care or 24-hour live-in care, and funding options vary depending on the level of care needed.
Want to learn the difference between care at home and a care home? Then read our guide to make an informed decision.
What Is A Care Needs Assessment?
The first step before any funding conversation is to have a care needs assessment carried out by your local council. This is known as a legal right under the Care Act 2014, and that entitlement continues regardless of your income/savings/properties.
It is not lawful for a council to refuse to conduct one simply because it thinks you will find funds to support yourself.
The assessment considers your difficulties in day-to-day living and how they impact your health, safety, and independence. You can do the assessment directly through your local authority’s adult social care team, and you can ask for an assessment that happens face-to-face, by phone, or online.
What Happens During the Assessment
- A trained evaluator or social worker will talk about your typical day and what challenges you are facing.
- They consider your physical, mental, and emotional well-being rather than giving you physical tasks.
- Family members or carers can be involved, and a separate carer’s assessment is available if you support someone else.
- The council will assess you to see if your needs meet the national eligibility threshold for care.
- If you are found suitable, you are invited to a financial assessment to determine funding.
Good to Know
- You can ask for a care needs assessment even if you’re pretty sure you’ll be self-funding; it still gets you an official care plan and access to expert advice.
- Assessments are free.
Local Authority Funding For Care In Your Own Home
Once a needs assessment has confirmed your need for support, the council then conducts an assessment of your finances, which is referred to as a ‘means test’, to determine how much (if any) money it will pay toward the cost of your care.
Financial Assessment (Means Test)
The means test considers your income (pensions, benefits, and earnings) and your capital (savings, investments, and land) before comparing it against national thresholds. Unlike residential care, living at home is not usually included in the means test for care you receive while still living there.
| Nation | Lower Threshold | Upper Threshold |
|---|---|---|
|
England |
£14,250 |
£23,250 |
|
Northern Ireland |
£23,250 |
£23,250 |
|
Scotland |
£20,250 |
£32,750 |
|
Wales |
£50,000 (single threshold) |
£50,000 |
What The Council Pays For Vs What You Pay
If you become entitled to funding, the council will usually fund the care hours recognised in your care plan, up to the fee it pays to licensed nearby providers.
If you go for a more expensive provider or hours over and above your assessed needs, you’ll generally have to pay the difference yourself.
Direct Payments Vs Council-Arranged Care
You can choose how your funding is delivered:
- Council-Managed Care: The local authority selects and manages a care provider on your behalf.
- Direct Payments: You receive the funding directly and can decide to employ or obtain your care support with more flexibility.
Best Funding Options For Home Care In The UK
Not all are eligible for full local authority funding, and some people prefer more control over their care arrangements. Here are the other routes worth understanding.
Self-Funding
If your capital exceeds the upper threshold, you will be treated as a self-funder and pay for care yourself. That way, you have complete freedom in terms of providers and hours, but costs can spiral rapidly with live-in care.
NHS Continuing Healthcare (CHC)
If the primary reason you need care is because of a health condition and not social care needs, then you might be entitled to NHS Continuing Healthcare, which is free, comprehensive care that is also not means-tested.
This is one of the most important entitlements to consider, especially for those with serious or chronic medical conditions.
Attendance Allowance and Other Benefits
Attendance Allowance is a non-means-tested benefit for those over ‘state pension age’ who need help with personal care due to illness or disability.
It is unaffected by other savings or income and can be used flexibly against the cost of care. You may also be eligible for other benefits, such as ‘Pension Credit’ or ‘Carer’s Allowance’, if a family member cares for you.
Equity Release
Equity release enables someone to free up money in their home without having to sell or move out of their home, so it can help with paying for care costs, particularly for those who do not qualify for support from the local council but want to avoid running down their savings.
However, it is worth seeking independent financial advice before proceeding, as it reduces the value of your estate.
Family-Funded or Pooled Contributions
Some families choose to pool contributions between relatives to fund a loved one’s care, either alongside council support or entirely privately. This can help maintain a higher standard of care than council funding alone could cover.
Local Authority Funding Vs Other Options: Which One Is Right For You?
The right choice depends on your financial situation, the type of care needed, and how much control you want over who provides it. Here is a side-by-side comparison to help you decide:
| Funding Option | Best For | Means-Tested | Key Consideration |
|---|---|---|---|
|
Local Authority Funding |
People with capital below the national threshold |
Yes |
Requires needs and financial assessments; choice of provider may be limited |
|
NHS Continuing Healthcare |
People with primary health needs |
No |
Strict eligibility criteria; worth requesting an assessment if in doubt |
|
Attendance Allowance |
Anyone over state pension age needing personal care assistance |
No |
Can be combined with other funding routes |
|
Equity Release |
Homeowners wanting to avoid selling assets |
No |
Reduces estate value |
How To Apply For Local Authority Home Care Funding?
The process of applying for local authority home care funding is broadly the same across the UK, though some points vary by local authority:
- Contact your local council’s adult social care team to request a care needs assessment.
- Participate in the assessment (in person, by phone, or online) and discuss your daily needs and difficulties.
- If eligible, complete a financial assessment (means-test) to determine what funding you qualify for.
- Review your personal budget and care plan with the council.
- Get help arranging care through the council, or take a direct payment and arrange your own support.
- Initiate care and conduct periodic reviews to change the support offered as people’s well-being evolves.
Common Mistakes To Avoid
Here are some of the common mistakes you should avoid:
- Delaying the Assessment: Waiting too long to request a needs assessment can mean unnecessary costs or a decline in well-being.
- Assuming you won’t qualify: Many people wrongly assume they earn or own too much and skip the assessment altogether.
- Misunderstanding Property Rules: Your home is typically excluded from the means test for home care, unlike residential care, so don’t assume it counts against you.
- Not applying for NHS Continuing Healthcare: This funding is one of the most overlooked entitlements, and it’s entirely free if eligible.
- Overlooking Direct Payments: Some families choose council-arranged care without realising that direct payments can offer more flexibility.
- Not Comparing Providers: Most people commit to the first live-in care provider instead of comparing them based on quality, cost, and feedback received.
Find The Top Live-In Care Provider In The UK with ComparedExperts
Knowing your funding options is only part of the journey; choosing the right care provider is equally essential. It doesn’t matter if you are eligible for local authority funding, NHS CHC, or a combination of things; the quality of the provider will impact what care looks like on a day-to-day basis.
ComparedExperts lets you compare approved live-in care providers from across the UK so that you can look at cost, specialisms, availability, and customer reviews in one place without having to spend hours researching different providers individually. It’s an easy way to ensure that the funds you have secured are used for care that best suits your needs.
Ready to Compare Live-In Care Providers?
- Fill in our quick quote form.
- Compare live-in care providers by cost, specialism, and reviews.
- See availability in your area before you commit.
- Compare and make an informed decision.
FAQs
No. Unlike residential care, your main home is not counted in the financial assessment for care you receive while continuing to live in it.
Costs differ regionally as well as by provider, but to give an estimate, home care is usually around £20 to £30+/hour.
You can ask your local authority to reconsider the assessment, and if you are still not satisfied, follow it up with a formal complaint through the council’s complaints process.
No, NHS Continuing Healthcare is funded entirely by the NHS; it isn’t means-tested and applies only when your needs are primarily health-related.
Yes, if your capital falls between your nation’s lower and upper thresholds, you can still get partial funding alongside a tariff income contribution.
