Care in the UK can be expensive. Depending on the level of support needed, costs can run to hundreds or even thousands of pounds each month. But many families are unaware of the full range of financial support available, and as a result, they pay far more than they need to.
This article explains every main source of care funding in the UK, who qualifies, and how to access it.
Attendance Allowance
Attendance Allowance is a non-means-tested, tax-free benefit for people aged 65 or over who have a physical or mental disability and need help with personal care or supervision.
There are two rates. The lower rate (currently £68.10 per week) is for people who need help during the day or at night. The higher rate (£101.75 per week) is for people who need help both day and night, or who are terminally ill.
Importantly, you do not need to be currently receiving care to qualify. You only need to demonstrate that you have the need. Many older people qualify but have never applied. The application can be made by the person themselves or by a family member on their behalf. The form is detailed and takes time to complete well. Charities like Age UK offer free help with applications.
Attendance Allowance can be used to pay for a private carer, and it does not affect other benefits in most cases.
Personal Independence Payment (PIP)
PIP is for people aged 16 to 64 who have a long-term physical or mental health condition or disability. It covers two components: Daily Living and Mobility, each with a standard and enhanced rate.
PIP is assessed through a form and usually a consultation. Many people find the process difficult, and it is worth getting support from a welfare rights adviser or Citizens Advice before applying.
NHS Continuing Healthcare
NHS Continuing Healthcare (CHC) is fully funded care, paid for entirely by the NHS, for people who have a primary health need, and it is not means-tested. It covers both care home and home-based care.
To receive CHC, a person must be assessed as having a complex, intense, or unpredictable health need. The assessment is carried out by a multidisciplinary NHS team. The process can feel daunting, and many eligible people are turned down at first, but decisions can be challenged.
If your relative has complex ongoing health needs (for example, advanced dementia, a progressive neurological condition, or needs arising from a serious stroke), it is absolutely worth requesting a CHC assessment. If successful, it can mean the NHS funds all care costs, including private home care, at no cost to the family.
Families have the right to request a CHC assessment at any time. It can be initiated through a GP, a hospital discharge team, or social services.
Local authority funding
If a person has eligible care needs and limited financial resources (assets below £23,250 in England), the local council has a legal duty to contribute to care costs.
The process begins with a needs assessment (free, by right) followed by a financial assessment. If the council agrees to fund care, the family can choose to have the council arrange care directly, or request a personal budget or direct payment to purchase care themselves.
Direct payments are particularly valuable. They allow families to choose their own carers, including through platforms like Hibant, and often deliver better outcomes than council-arranged care.
Deferred Payment Agreements
If a person owns their home and needs care, the council may offer a Deferred Payment Agreement. This allows care costs to be paid from the sale of the home after the person passes away or moves permanently into a care home, rather than forcing a sale immediately. This can provide significant breathing space for families.
Equity release
For homeowners, equity release schemes allow some or all of the value of the property to be accessed as a lump sum or regular income while continuing to live there. This is a significant financial decision and should only be made with specialist independent financial advice. The Equity Release Council sets standards for providers.
Charitable grants
Various charities offer grants to help with care costs for people with specific conditions. Examples include the Alzheimer's Society, MS Society, Macmillan Cancer Support, and many others. Eligibility criteria vary. Your social worker or GP should be able to signpost relevant charities, or you can search through Turn2us, a free benefits and grants search tool.
What most families should do first
Start with a needs assessment from the local council. This is free, and it unlocks access to funded support and direct payments. Then apply for Attendance Allowance if your relative is over 65, many families are surprised by how straightforward this is and how much it helps. Finally, if health needs are complex, ask for a CHC assessment. The worst outcome is that they say no.
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