Understanding how care is funded

Local Authority Funding

Local Authorities may contribute towards the cost of care following a financial assessment. This assessment looks at the finances of the individual needing care only — not joint finances.

• Capital, savings, and income are assessed
• Some assets may be disregarded, including the family home in specific circumstances (e.g. a spouse or qualifying relative still lives there, or care is temporary)
• Funding may be available for permanent or temporary care
• If local authority funding doesn't fully cover your chosen care home, a top-up payment may be possible (usually paid by a third party)

Whether you qualify depends on your income, savings, and assets. The rules and thresholds are set nationally and may change over time, so we recommend reviewing the official guidance.

Attendance Allowance

If you are over State Pension age and need help with personal care due to illness or disability, you may be eligible for Attendance Allowance.

• Not means tested
• Tax free
• Paid directly to the individual
• Can help contribute towards care costs

Please note: Attendance Allowance is usually not paid if Local Authority funding is covering care costs, and may stop during extended hospital stays.

NHS Continuing Healthcare (CHC)

NHS Continuing Healthcare is a fully funded package of care provided by the NHS, based on health needs rather than financial circumstances. Care can be provided in a care home, in your own home, or in other appropriate settings.

Eligibility depends on whether a person is assessed as having a primary health need. Assessments can be requested before hospital discharge, through a GP, or when health needs significantly change. Consent is required from the individual or their health and welfare power of attorney.

Independent Financial Advice

Understanding care funding options can feel overwhelming. Many families benefit from speaking with a specialist independent financial adviser experienced in later-life care planning.

Appropriate financial advice can reduce long-term financial stress, help plan sustainable care funding, and provide reassurance and clarity for families.