Home care | Guide to local authority funding

If you need home care, you may be able to get help with the cost from your local authority, depending on your care needs and financial circumstances.

This guide explains how local authority funding for home care works, including care needs assessments, financial assessments, capital limits, personal budgets and direct payments. The rules vary depending on where you live in the UK.

How do I know if I can get free home care?

If you are asking your local authority for help with the cost of home care, they will usually look at your care needs and your financial circumstances.

A care needs assessment looks at what support you need, while a financial assessment works out whether you need to contribute towards the cost of your care and, if so, how much.

The process and funding rules vary across the UK, so the support available will depend on where you live as well as your individual circumstances.

How much is home care?

A person paying for their own home care can expect to pay on average £26-38 an hour.

What does a care needs assessment involve?

A needs assessment will seek to determine the type and level of care you need on a day-to-day basis.

The assessment will be carried out by a care professional, such as a nurse, social worker or occupational therapist and they will ask you a number of questions to find out more about your daily life; the things you find difficult as well as the aspects of your life you’re content with.

What kind of questions will be asked during a needs assessment?

Questions asked will usually be related to:

• Your living situation
• Your health
• Your wellbeing
• Your lifestyle
• How you manage daily life.

You can find out more information about needs assessments in our article here.

What does a financial assessment involve?

A financial assessment will work out whether you’ll pay for, or contribute towards the cost of, your care.

The assessment, also known as a means test, will look at your income, savings and any assets you have. The assessment will not take into account the value of your property, as you’ll continue to live there.

How much you’ll be expected to pay will be determined by the capital limits in place in the country you live in.

What are the thresholds for home care?

The financial rules for home care vary depending on where you live in the UK. Your local authority may consider your savings, income and other financial circumstances when working out whether you need to contribute towards your care.

Some parts of the UK use capital limits as part of this assessment. Being below a particular capital limit does not necessarily mean that all your home care will be free, as your income and the type of support you receive may also be taken into account.

The table below gives an overview of the different arrangements across England, Wales, Scotland and Northern Ireland.

Capital limits for home care in each country

The amount you may need to contribute towards home care depends on where you live, your financial circumstances and the type of support you receive. The funding systems differ across the UK.

Country	Capital limits / charging rules for home care
England	Over £23,250: You pay the full cost of care. £14,250–£23,250: You contribute towards the cost. Below £14,250: Your capital is disregarded, but income may still be considered when calculating your contribution.
Wales	£24,000 capital limit: Below this, capital is disregarded and income may still be assessed. Councils can charge no more than £100 per week for non-residential care.
Scotland	No capital threshold for personal care: Personal and nursing care at home is free for people assessed as needing it, regardless of income or savings. Local authorities may charge for other support services under their own charging policies.
Northern Ireland	Health and Social Care Trusts determine eligibility and charging arrangements; contact the relevant Trust for details.

What is the care cap?

Back in 2021, the government announced a considerable overhaul to care funding in England. The proposed changes included a lifetime cap on the cost of care, meaning nobody living in England would pay more than £86,000 for personal care over their lifetime.

The government ditched the proposed cap on care costs in July 2024.

Personal budgets and direct payments

If you’re eligible for support, you’ll be allocated a personal budget.

A personal budget is a specific amount of money that your local council agree to pay towards the cost of your social care needs. The amount will be determined based on your financial assessment as well as your needs assessment.

What can you use a personal budget for?

• Carers or personal assistants
• Home adaptations
• Equipment to help with daily life, such as a wheelchair or other mobility aids
• Transportation
• Respite care
• Community services
• Day care services

Is a personal budget the same as a personal health budget?

No. A personal health budget is funded through the NHS to cover the cost of healthcare and support provided by the NHS, whereas a personal budget is funded through your local council for your social care needs.

You can receive both at the same time if you’re eligible.

How do you manage a personal budget?

If you’re allocated a personal budget, there are a few different ways to manage this money.

• Have the money paid directly to you for you to then spend on meeting your care needs.
• Have the money paid to somebody you trust, such as a family member or close friend, who will then spend the money on meeting your care needs.
• Have the money managed by a third party, such as a service provider.
• Have the local council arrange the care and support you need and make the payments for you.

For each of the above options, the money needs to be spent on legitimate ways to meet your care needs, according to the care plan that would have been put together for you. Whichever option you choose, your local council will work with you to ensure that the budget is being spent effectively.

What are direct payments?

If you choose for your personal budget to be paid to yourself or someone close to you, this is known as a direct payment.

In both of these cases, you’ll need to keep receipts or other evidence of how the money is being spent, which the council will then verify to make sure the money is being spent appropriately.

You can also choose to split the money, with part of the budget being provided as a direct payment and part being managed by the council.

How do I get help with the cost of home adaptations?

Home adaptations are intended to make everyday life easier for you, making it possible for you to continue living in your home safely, and complement any home care services you’ll be receiving.

Home adaptations can include anything from minor changes, such as installing a handle in the shower or by your front door, to more significant changes, for example, widening doorways or lowering kitchen countertops.

To determine if you’d benefit from home adaptations, your local council will arrange an assessment. This assessment is free of charge.

How does a home assessment work?

The assessment will be carried out by an occupational therapist who will look around your home and ask you questions about how you manage day-to-day. It should take about an hour. You should be as honest as you can to ensure the person carrying out the assessment gets an accurate picture of how your daily life is. It could be a good idea to have a family member or friend with you during the appointment for support.

Paying for home adaptations

Home adaptations can be expensive and you may want to do more than your personal budget will cover. To find out more about funding home adaptations, read out article here.

Where to start looking for home care

If you’re ready to start looking for a home care agency, homecare.co.uk is the perfect place to start. On the website, you can search in your local area and filter results by a range of different categories to suit your needs.