Older people
How care at home is paid for.
Most families start by assuming they will pay for everything, or that the council will pay for everything. Usually neither is right.
Start with a needs assessment
Anyone who appears to need care and support can ask their council for a needs assessment. It is free, it does not depend on income, and it is a right under the Care Act 2014. Do it even if you expect to pay privately — it establishes what support is needed, which is useful whoever is paying.
A carer looking after someone is separately entitled to a carer’s assessment, which is frequently overlooked.
The means test
If the council agrees there are eligible needs, a financial assessment decides who pays. It looks at income and capital, and the thresholds are set nationally and change, so check the current figures with your council or on GOV.UK rather than relying on a number on a website.
Broadly: above the upper capital threshold you pay the full cost; below the lower threshold the council pays, though income is still taken into account; between the two you contribute on a sliding scale. For care at home, the value of the home you live in is not counted.
Direct payments
If the council will fund some or all of the care, you can usually take it as a direct payment and arrange support yourself rather than accepting the council’s chosen provider. That means you can choose who comes. If a council-arranged service is not working, this is often the route to changing it.
NHS Continuing Healthcare
Where someone’s needs are primarily health rather than social care needs, the NHS may fund the whole package through Continuing Healthcare. It is not means-tested. It is also assessed strictly and frequently refused, and decisions can be appealed. Worth pursuing where health needs are significant.
Attendance Allowance
Often missed. For people over State Pension age who need help with personal care or supervision. Not means-tested, not taxed, and not affected by savings or income. It does not require a diagnosis — it is based on the help needed. Age UK will help with the form, which is long.
Other things worth checking
- Council Tax — reductions and disregards apply in several situations, including severe mental impairment.
- Pension Credit — frequently unclaimed, and it opens the door to other help.
- Carer’s Allowance for a family member providing substantial care.
- Disabled Facilities Grant for adaptations.
If you are funding it yourself
Ask for the hourly rate, what it includes, and the rates for evenings, weekends and bank holidays. Ask about the notice period and what happens during a hospital stay. Get it in writing before care starts.
Where to get independent advice
Age UK’s advice line is free and genuinely good on benefits. Citizens Advice can help with the means test. For complex finances, look for a financial adviser accredited by the Society of Later Life Advisers. Your council’s adult social care team is the authority on its own thresholds.
Thresholds and benefit rules change. Check current figures with your council or on GOV.UK. This page is general information, not financial advice.
Written by Care Horizons, an independent care provider in Yate, South Gloucestershire. General information, not financial, legal or medical advice. For benefits and funding decisions, your local council’s adult social care team and Age UK are the authoritative sources.
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Where to get independent advice
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0117 405 4320 [email protected] Enquiries are handled by our Service Manager and Deputy Manager, with Director Vierka Hiscock overseeing every case. We normally respond within one working day.