Paying for care
Working out who pays for care can feel overwhelming. Here's how it works, in plain English.
Start with what's free
- The care needs assessment is free, whatever someone's savings.
- Equipment and small adaptations that cost under £1,000 each, such as grab rails or a walking frame, must be provided free if the council's assessment says they're needed (England).
- Short-term care after a hospital stay is usually free for up to 6 weeks (England). See leaving hospital.
- Attendance Allowance isn't means-tested, and can be used towards the cost of care.
The means test
If the needs assessment finds someone needs care, the council does a financial assessment (a means test). It looks at income, such as pensions and benefits, and savings. It doesn't count possessions or life insurance.
In England, the council generally helps with costs if savings are under £23,250. Above that, people usually pay for their own care.
For care at home, the value of the home isn't counted. It can be counted for a long-term move into a care home, unless certain people still live there, such as a partner.
Giving money or property away before the assessment doesn't work. The council can ask about things someone used to own.
Direct payments
If the council pays towards care, it sets a personal budget. You can ask for it as a direct payment into a bank account, so you arrange the care yourself. That can mean choosing a particular carer who suits you, perhaps someone recommended to you.
If you employ a carer directly, you become their employer, with responsibilities such as tax and National Insurance. A self-employed carer runs their own business instead. Our guide to agreeing terms in writing explains why the difference matters.
https://www.nhs.uk/social-care-and-support/ continuing healthcare
Some people with complex health needs qualify for care that's fully funded by the NHS, at home or in a care home. It depends on how complex, intense and unpredictable their needs are, not on a particular diagnosis. Ask the GP, the hospital or the council about an assessment. See our guide to NHS continuing healthcare.
In Scotland
Personal care, such as help with washing, dressing and going to the toilet, is free for adults assessed as needing it, whatever their income. Councils can still charge for some other services, such as lunch clubs, and there's a separate means test for care homes. Ask the council about self-directed support, which lets you choose how your care is arranged, including a direct payment.
In Wales
For care at home, the council can't charge more than £100 a week in total, and savings up to £24,000 are ignored. For care homes, savings up to £50,000 are ignored. Direct payments are available too.
Free, independent advice
MoneyHelper, a free service backed by the government, has guides to paying for care. For complex questions, the Society of Later Life Advisers can help you find an accredited financial adviser.