Funding and Paying for Care

Understanding the cost of home care

When it comes to paying for home care in the UK, there are several funding options available. Depending on your circumstances, you may be eligible for:

Attendance Allowance Carer's
Allowance Local Authority
Social Services Funding
Personal Health Budgets
NHS Continuing Healthcare

We have outlined each option below to help you find the right funding route for your situation.

Understanding how to pay for home care can feel overwhelming, especially when you are already dealing with a great deal. This page sets out the main funding options available in the UK in plain, straightforward terms. Everyone's situation is different, and the right funding route will depend on your circumstances, savings, and health needs. Where relevant, we have noted where you should seek further guidance from your local authority or a professional adviser.

Attendance Allowance

Attendance Allowance is a tax-free government benefit for people of State Pension age or older who need support with personal care due to a disability or health condition.

It is not means-tested, meaning your savings and income are not taken into account. It is paid at two rates depending on the level of support needed.

You may also become entitled to additional Pension Credit, Housing Benefit, or Council Tax Reduction if you qualify.

Current rates and eligibility criteria are available at gov.uk/attendance-allowance.

Carer's Allowance

Carer's Allowance is available to people who care for someone else for at least 35 hours a week, where the person they care for receives certain qualifying benefits.

You do not need to be related to or live with the person you care for.

It is a taxable benefit and can affect other benefits that both you and the person you care for receive.

Current rates and eligibility criteria are available at gov.uk/carers-allowance.

Local Authority Funding

If you have limited savings, you may be eligible for funding support from your local council. The first step is to request a Care Needs Assessment from your local Adult Social Services department. This assessment looks at the level and type of support you need.

If you are found eligible, the council will contribute towards the cost of your care. The amount varies between local authorities and may not cover the full cost of care. However, through a system called Direct Payments, eligible individuals can take control of their personal budget and, if they choose, use additional funds of their own to arrange care that suits them.

To find out more, speak to your local Adult Social Services department or visit nhs.uk for guidance on personal budgets and direct payments.

NHS Continuing Healthcare

If your care needs arise primarily from a health condition rather than social care needs, you may qualify for NHS Continuing Healthcare.

This is fully funded by the NHS and can cover personal care, healthcare costs, and support at home.

Eligibility is assessed by a team of health and social care professionals.

If your health is deteriorating rapidly, a fast-track assessment may be available. More information is available at nhs.uk.

Personal Health Budgets

Personal health budgets are an NHS-funded option that gives individuals more control over how their care needs are met.

They can be self-managed or arranged on your behalf by the NHS or a third party. More information is available at nhs.uk.

Paying for Care Privately

Many people fund their own care privately, either because they do not qualify for means-tested support or because they prefer to arrange care independently.

Private funding gives you the greatest choice over your provider, your carers, and your schedule.

If you are funding your own care, it is still worth checking whether you are entitled to any non-means-tested benefits such as Attendance Allowance, which can help offset costs.

Why Funding Can Vary

No two people's funding situations are the same. The support available to you will depend on a number of factors including your savings and assets, the nature and level of your care needs, where you live, and whether your needs are primarily health-related or social care-related.

This is why a formal assessment, either from your local council or via the NHS, is often the best first step.

Disclaimer:A Note on Financial and Legal Advice

This page is intended to give you a general overview of the funding landscape. It is not financial or legal advice. Funding rules, thresholds, and eligibility criteria can change, and the right route for your situation will depend on your individual circumstances.

We would always recommend speaking to your local Adult Social Services department, an independent financial adviser with experience in care funding, or a charity such as Age UK or Citizens Advice for guidance tailored to you.

If you would like to talk through your care options in Derby or the surrounding area, our team is happy to help.