How home care is paid for: self-funding, the council and the NHS

The care needs assessment, the financial assessment and the £23,250 threshold, direct payments, Attendance Allowance, and NHS continuing healthcare.

Start with a care needs assessment

Whoever ends up paying, the first step is a free care needs assessment from the adult social care team at the local council. Anyone can request one; it sets out what support is needed and unlocks council funding if the person qualifies. It can take several weeks, so ask early, and arrange private care in the meantime if needed.

The financial assessment

If the needs assessment says care is needed, the council does a financial assessment. For care at home, the value of the person's own home is not counted. If savings and other assets are above £23,250 the person pays the full cost; between £14,250 and £23,250 they contribute from savings; below £14,250 only income is taken into account. Income above a protected minimum goes towards the cost.

Direct payments

If the council agrees to fund care, the person can take the money as a direct payment and choose any CQC-registered agency rather than the council's contracted providers. The council's hourly rate may be lower than the agency's private rate, in which case a top-up is needed.

Benefits that help

Attendance Allowance is paid to people over State Pension age who need help with personal care, regardless of savings or income (£73.90 or £110.40 a week in 2025-26). It is not means-tested and is widely under-claimed. Under pension age, the equivalent is Personal Independence Payment.

NHS continuing healthcare

Where the main need is health rather than social care, the NHS may fund the whole package, including care at home, through continuing healthcare (CHC). It is assessed separately, the bar is high, and it is worth asking the GP or hospital discharge team whether a CHC checklist should be done.

Published 2026-11-05. General information, not advice about an individual's care or finances; figures are national and change yearly.