Funding home care in the UK can feel like a complicated topic, but in practice it usually comes down to three main routes: self-funding, local authority funding, and NHS Continuing Healthcare. Understanding how each of these options works for home care services is the first step to making a clear, confident decision about how to pay for care for a loved one.
This guide is designed to give you straightforward, plain-English information without jargon. There is no single right way to fund care, and for many families a combination of routes works best.
Care Santé provides home care services across South Yorkshire, Humberside, the East Midlands, Central England, London and Kent. We work with clients on all the funding routes set out below, and we are very used to helping families think through which combination of options will work best for them.
The Three Main Funding Routes
Most home care in the UK is funded through one or more of three main routes. It is worth understanding each one before deciding which applies to your situation.
1. Self-Funding
Self-funding simply means that the individual or their family pays for care directly. This is the most common funding route for home care, particularly in the early stages, and it offers the greatest flexibility in terms of choosing the provider and the level of care.
Self-funding usually applies where the person’s capital is above the threshold for local authority support. In England, the current threshold is £23,250 in capital, though this is due to change in coming years. Capital includes savings, investments and certain other assets, though the value of the home is normally excluded if a partner still lives there.
Many self-funding clients use savings, income from pensions or investments, or in some cases the sale of a property to fund care. Some people release equity from their home to fund care, although professional financial advice is always sensible before doing so.
2. Local Authority Funding
Where a person’s capital falls below the relevant threshold, the local authority may contribute to the cost of care following a needs assessment and a financial assessment.
The needs assessment looks at what kind of care a person genuinely requires. It is a free service and you can request one from your local council’s adult social care team. The financial assessment, sometimes called a means test, looks at what the person can afford to contribute. Together, these establish what the local authority will fund and what the individual is expected to pay.
Where local authority funding is in place, you can usually still choose to use a private provider through Direct Payments, as explained below.
3. NHS Continuing Healthcare
NHS Continuing Healthcare is fully funded care provided by the NHS for individuals whose main care needs are health-related. Unlike local authority funding, it is not means-tested. If a person qualifies, the NHS covers the full cost of their care.
The assessment for Continuing Healthcare is rigorous and looks at the nature, intensity, complexity and unpredictability of the person’s needs. It is not enough simply to have a serious diagnosis; the focus is on how that condition affects daily care needs.
Continuing Healthcare can be requested through your local Integrated Care Board, often following a hospital stay or significant change in condition. The process can take time, and a clear, well-evidenced application is important. We can help families think through how to approach this.
Other Funding Routes Worth Knowing About
Direct Payments
If your loved one is eligible for local authority funding, they may choose to receive their personal budget as Direct Payments. This means the funds are paid directly to them or a representative, and they can choose how to spend them on care. This offers more choice and flexibility than care arranged directly through the council.
Direct Payments are widely used by people who want to remain with a specific provider, organise care that suits their preferences, or combine local authority funding with private top-up where the family contributes a little extra.
NHS Funded Nursing Care
This is a contribution towards the cost of nursing care provided by a registered nurse for people living in a nursing home. It is less commonly relevant for home care, but worth being aware of if your situation involves nursing input.
Attendance Allowance
Attendance Allowance is a non-means-tested benefit available to people of State Pension age who need help with personal care due to a physical or mental health condition. It is paid weekly and can be used to contribute towards the cost of care. It is well worth applying for if your loved one may qualify.
Personal Independence Payment
For people under State Pension age, Personal Independence Payment plays a similar role. Again, it is not means-tested and can help contribute towards care costs.
How Care Santé Works Alongside Each Funding Route
We work with clients across all of the funding routes outlined above. We are very used to providing care for privately funded clients, for those receiving local authority support, for those funded through NHS Continuing Healthcare, and for those using Direct Payments to commission their care.
Whatever your funding situation, we will give you clear, straightforward information about what your care will cost, what is included, and how invoicing or local authority payments will work. We will never make the financial side feel difficult or unclear.
Common Questions Families Ask
How Do I Find Out If We Qualify for Local Authority Funding?
The starting point is to contact your local council’s adult social care team and request a needs assessment. This is free, and the assessment also helps identify what kind of care would best suit your loved one, even if you end up self-funding.
How Do I Apply for NHS Continuing Healthcare?
If you think your loved one’s needs are primarily health-related, you can ask their GP or hospital discharge team to refer them for a Continuing Healthcare checklist, which is the first stage of assessment. We can help guide you through what to expect.
Can We Mix Funding Sources?
Yes. Many families combine funding routes. For example, a person might receive a contribution from the local authority alongside a top-up from the family, or use Attendance Allowance alongside private payments. We are happy to talk through how this can work.
What If Our Situation Changes?
Funding can be revisited at any time. If a person’s capital reduces, they may become eligible for local authority funding. If their health needs become more substantial, Continuing Healthcare may be worth reassessing. Care plans should be flexible, and so should funding arrangements.
Practical Steps to Take
If you are starting to think about how to fund care, these are the steps we would suggest:
Request a needs assessment from your local council’s adult social care team
Check whether Attendance Allowance or Personal Independence Payment may apply
Speak to a care provider you trust about likely costs for the type of care needed
Consider seeking independent financial advice if significant assets are involved
If health needs are substantial, ask about a Continuing Healthcare checklist
Taking these steps early gives you time to plan calmly rather than under pressure. We are always happy to talk through your situation as part of this process.
Who This Guide Is For
This guide is intended for:
Families starting to think about how to pay for care for an older relative
Adults arranging care for themselves, perhaps following a diagnosis or change in needs
People who have recently been told that local authority funding will not meet the full cost
Families who think NHS Continuing Healthcare may apply but are unsure how to pursue it
Anyone who would like clear information without jargon
Why Families Choose Care Santé
Care Santé was founded in December 2020, and since then we have grown to deliver home care services across South Yorkshire, Humberside, the East Midlands, Central England, London and Kent. Within our group you will also find Valley Care and Helpers Homecare, all united by the same values, culture and commitment to quality.
Our mission is to attract, nurture and develop the very best care professionals, and to make sure they feel valued, supported and motivated. We believe that when we look after our people properly, they deliver outstanding care to our clients. It really is that simple.
We work with clients who are privately funded, as well as those funded by their local authority, NHS Continuing Healthcare or via Direct Payments. Whatever your situation, we will give you clear, straightforward information and build a care plan that genuinely fits your needs.
Ready to Find Out More?
If you are thinking about home care funding for yourself or a loved one, we would love to hear from you. Our experienced, friendly team can talk through your specific situation, explain your options clearly, and help you understand what care could look like in practice.
There is no obligation and no pressure. Just honest, helpful advice from people who genuinely care.
Call us: 01462 896 853
Email: info@caresante.co.uk
Visit our website to explore our full range of home care services and find your nearest team.
