How to Fund Care at Home: Understanding Your Options

Paying for home care can feel complicated, but there are more options available than most families realise. This guide walks through the main funding routes — from council funding to NHS Continuing Healthcare.

One of the first questions families ask when looking into care at home is a simple one: how do we pay for it? The answer is rarely straightforward, but there are more routes to funding than most people realise. This guide sets out the main options clearly, so you know where to start.

Local authority funding

If someone's care needs are assessed as eligible, the local council may contribute towards the cost. The process starts with a care needs assessment, carried out by the local authority, which looks at what support is needed and what the person can manage independently.

Following that, a financial assessment — sometimes called a means test — determines how much, if anything, the council will contribute. This takes into account income, savings and assets. In England, if someone's assets fall below £23,250, they may be entitled to some council support. The threshold changes from time to time, so it is always worth checking the current figures with your local authority or a benefits adviser.

If funding is agreed, the council may arrange the care directly or offer a direct payment — a sum paid to the individual to organise their own care. Direct payments give more flexibility and control over who provides the support.

NHS Continuing Healthcare

NHS Continuing Healthcare (CHC) is a package of care funded entirely by the NHS for people whose primary need is a health need rather than a social care need. It is not means-tested — if someone qualifies, their care is paid for in full, regardless of their financial situation.

CHC is assessed against a set of criteria covering things like complexity, intensity and unpredictability of needs. The process involves a checklist and, if that suggests eligibility, a full multi-disciplinary assessment.

It is worth knowing that CHC is often under-used because families are not aware of it or feel the process is daunting. If you believe someone might qualify, it is worth pursuing. A GP, discharge team or care manager can help initiate a referral.

NHS-funded nursing care

For people in a care home who require nursing care, there is a separate NHS contribution known as funded nursing care. This is a flat weekly amount paid directly to the care provider to cover the nursing element of care. It is not available for home care, but is worth knowing about if a care home becomes part of the picture.

Attendance Allowance and other benefits

Attendance Allowance is a non-means-tested benefit for people over state pension age who need help with personal care or supervision due to a physical or mental disability. There are two rates depending on the level of need. It does not affect most other benefits and can make a meaningful contribution towards care costs.

Personal Independence Payment (PIP) serves a similar purpose for people under state pension age. Carer's Allowance may also be available to family members who provide a significant amount of unpaid care.

Checking benefit entitlement is always a worthwhile step. Many families are not claiming everything they are entitled to, and the amounts can be significant when added together.

Paying privately

Many families in Devon and Cornwall fund care at home privately, either entirely or to top up a council or NHS contribution. This gives the greatest flexibility in terms of choosing a provider, the level of care and when it is delivered.

If you are self-funding, it is worth taking independent financial advice, particularly if property or savings are involved. A specialist later-life financial adviser can help think through how to structure funding in a way that is sustainable long-term.

Where we can help

Smeaton Healthcare works with families across Devon and Cornwall who are funding care in all of these ways. We can talk through what care is likely to cost, help you understand what to expect from the assessment process, and connect you with people who can offer specialist financial advice if that would help.

Call us on 0330 165 8880 or request a free care assessment through our website — there is no obligation, just a conversation.