Funding elderly care at home

Local authority funding for care

If your loved one needs help at home, the local authority (council) is usually the first place to start. Funding decisions are based on two key assessments:

1. A care needs assessment – to identify what level of support your loved one requires.
2. A financial assessment (means test) – to determine how much they are expected to pay towards care.

If you’re exploring local authority funding, the council will look at your family member’s income, savings, and assets – not yours – to decide their contribution.

Action: Contact your local council as soon as possible to request a care needs assessment if you think your loved one may need funding for home care.

Care funding thresholds in England, Scotland, and Wales

How much you pay for your loved one's care at home depends on where they live. Each nation runs its own system, so it's worth understanding the rules that apply before you start budgeting.

England

Care at home is means-tested. The local authority looks at your loved one's income and savings, and works out what they can afford to contribute:

• If they have savings and assets above £23,250, they'll usually need to pay the full cost themselves.
• Between £14,250 and £23,250, the council will contribute something towards their care, and they'll pay the rest based on their income.
• Below £14,250, they'll typically only pay from their income, not their savings.

There's no weekly cap on what your loved one might pay overall. For more information, visit GOV.UK’s website.

Scotland

Personal care, things like help with washing, dressing, and taking medication, is free if your loved one is assessed as needing it, regardless of their income or savings. This is different from England and Wales, where their finances always come into the calculation.

Other support, such as help with housework or shopping, isn't covered by this and can still be charged for, with rates varying by local authority. Learn more about the costs of personal and nursing care.

Wales

Care at home is capped. The council still carries out a means test to work out your loved one's contribution, but whatever that comes to, they'll never be asked to pay more than £100 a week, no matter how much they have in savings. For more information, visit Wales’ government website.

NHS Continuing Healthcare Funding (CHC)

If your loved one has complex, ongoing health needs, they may qualify for NHS Continuing Healthcare (CHC).

CHC funding covers 100% of care costs, regardless of income or savings. To qualify, your loved one must have a primary health need, meaning their care requirements are mainly health-related rather than social. This may apply for conditions requiring complex medical support, such as PEG feeding, advanced wound care, or constant monitoring.

• Assessment: Conducted by an NHS multidisciplinary team.
• No financial means test: CHC is completely non-means-tested.
• Across the UK: In Scotland, CHC has been replaced by Hospital-Based Complex Clinical Care. Wales runs its own version of the scheme.

If you’re considering this type of funding, we’ve shared some resources below:

• NHS Continuing Healthcare (England)
• NHS Continuing Healthcare (Wales)
• Hospital-Based Complex Clinical Care (Scotland)

Palliative and end-of-life care funding

If your loved one is nearing the end of their life, fast-track funding may be available:

• NHS Fast Track Funding: For people with a rapidly deteriorating condition, allowing urgent CHC funding (often arranged within 48 hours).
• Attendance Allowance: A non-means-tested benefit for those over 66 who need care or supervision due to illness or disability.

Funding for dementia care and other specific conditions

There isn’t a specific scheme called “dementia care funding.” Eligibility depends on the level of need, not the diagnosis:

• Dementia or Alzheimer’s: Needs around memory loss or personal care usually fall under local authority funding.
• Huntington’s, MS, or Complex Conditions: May qualify for NHS Continuing Healthcare (CHC) if the health needs are intensive or unpredictable.

Self-funding home care

If your loved one’s assets are above the local authority threshold, they will need to self-fund their long-term care. Families often explore ways to release funds from property:

• Lifetime mortgages: A loan secured against the home, repaid when the property is sold.
• Home reversion plans: Selling all or part of the home in exchange for a lump sum or income, while continuing to live there rent-free.

These are complex financial products that can affect inheritance and benefits. Always seek guidance from a qualified later-life financial adviser. For more information about self-funding home care, read this article.

Tools and support

Making decisions about care funding can feel overwhelming. These resources are designed to help your family understand what support is available and take the next steps with confidence.

Get expert support

Navigating care funding can be daunting, but help is available:

• Financial Advice: The Society of Later Life Advisers (SOLLA) connects families with accredited advisers who specialise in later-life care and funding.
• Independent Advocacy: Advocates can guide you through assessments and applications, ensuring your loved one’s rights and wishes are represented. If you want to learn more about using advocates, OPAAL is an independent charity offering free resources and signposting services.