Arranging care for yourself or loved one brings about numerous concerns, with financing home care often being dominant. The uncertainty of the care’s duration can be daunting, especially with fears of funds depleting.

You might have tried researching but found it challenging to obtain comprehensive information on funding care. Understanding that this is an already stressful period if you’re seeking care for a family member, we’ve compiled this guide for you. It also includes additional resources for deeper insights if you wish to explore further.

Step 1: First steps to take

If you’re planning to get help for your elderly family member, the first step is to get them checked by Adult Social Services. This check-up will look at what kind of care and support they need. It’s important to do this before talking about how to pay for it. Your local council might want to talk about money right away, but you can ask them to finish the check-up first before discussing finances.

You can request a care and support assessment by reaching out to the Adult Social Services Department of your loved one’s local council.

If you’re currently a carer or planning to become one, you’ll need to undergo a Carers Assessment.

Step 2: What does a needs assessment mean?

The local Adult Social Services checks what care your family member needs. An Occupational therapist, social worker, or other expert might do this check-up so you don’t need many visits.

The 2014 Care Act says what support the local council must give. It focuses on what’s best for the person. This law believes in taking care of the person’s well-being. If your parent wants to stay at home, the council should think about that when making plans for them.

The local council has some basic needs that must be met before they can help. They look at things like being able to take care of oneself, eat properly, and move around.

The check-up will see if there are any risks to your parent’s welbeing. For instance, if your parent used to do community activities but now struggles, that needs to be considered and planned for.

The local council has to give you a copy of the assessment report.

For more information- NHS Social Care and Support Guide – A care needs assessment

Step 3: Can the local council help pay for care?

When you seek support from the local council for care costs, they will look at your loved one’s finances in a process called “means testing.” This determines if they can help with the costs and how much your loved one might need to pay. It’s important to note that even though your family member has been paying into the National Insurance system, that money is primarily for their pension and doesn’t directly cover the costs of social care. After the financial assessment, the council will decide the amount your parent will contribute towards their care.

If your parent has savings or things worth more than £23,250 (in England), they might have to pay for their own care or at least some of it. If they have less than this amount, you can ask the local council to help with the costs. Even if the council pays, you can pick who looks after your parent. The council gives you the money directly, and you choose how to use it for care.

For more information- NHS Social Care and Support Guide – Personal budgets and direct payments.

Step 4: Understanding the “Means Test” Process

Your local council will check your money and assets to see how much you can pay for home care. They’ll look at:

• Money you get regularly, like from pensions or jobs. 
• Things you own, like savings, land, houses (even outside the country), and business stuff. 

If you have savings over £23,250, they might ask you to pay for home care.

For more information- NHS Social Care and Support Guide – Financial assessment (means test)

Step 5: Keeping Your Parents’ Home and Money Safe

People often consider moving their parent’s or relative’s money and property to make it look like they have less. The idea is to get the care costs covered by the local council. But, if the council checks and sees that you purposely moved assets before asking for financial help, they might pretend the assets are still in your loved one’s name. This means they may not cover the full cost of care, thinking your loved one can afford it.

If one of your parents gives away money as a gift and then needs to go into a care home within the next six months, the local council can legally ask for that money to be returned. They would use it to help pay for the care home costs.

Age UK Fact Sheet – Deprivation of Assets in Social Care

Step 6: Options when capital assets are above the threshold

There are a several options available to pay for home care-

• Immediate Needs Money Plan: This is like a special kind of insurance. You pay a big sum of money once, and in return, you get a regular amount of money for the rest of your life. This can help pay for the care you need at home.  
• Selling and Moving to a Smaller Home: If your current house is too big or costly, you can sell it and buy a smaller, cheaper one. The extra money you get from selling can be used to pay for your home care. 
• Home Loan (Equity Release): This means you get a loan using your home as a guarantee. You can get money from the bank, and they will take a part of your home’s value in return. You can use this money for home care. You don’t need to pay back until you sell your home or move out. 
• Using Your Savings:  If you have saved money over the years or have invested in things that grow in value, you can use this money to get a regular income. This income can then be used to pay for the care you need at home. 

For more information: 

UK Care Guide – Equity release to pay for care costs

Money Helper – Immediate needs annuity

Step 7: Paying your care privately

The price for care varies in different parts of the UK. In areas where people earn higher salaries and where houses are expensive, you can usually expect to pay more for care services. This is because the overall cost of living and doing business in those regions is higher, leading to increased costs for services, including care.

You won’t get money help from your local council for care costs if:

• You’ve saved up more than £23,250. This amount is the upper limit for now, but it’s going up to £100,000 in October 2025.  

• You have your own house. But this only matters if you’re going to live in a care home.

If you want to see if you can get some money help, you can ask your council to check your finances.

For more information:
For more information- NHS Social Care and Support Guide – Paying for your own care (self-funding)

NHS Social Care and Support Guide – Financial assessment.