Find out top ten tips for paying for care in the UK

If you are considering care for yourself or a loved one, here is some useful information.

1. Get a Needs Assessment: This free assessment can be done by your local council and determines the level of care you require. It's crucial for determining eligibility for financial support https://www.nhs.uk/conditions/social-care-and-support-guide/money-work-and-benefits/when-the-council-might-pay-for-your-care/.
2. Financial Assessment: After the needs assessment, the council conducts a means test to assess your income and savings. This determines how much you contribute to your care. See details at the bottom of this article.
3. Council Support: The council may contribute to your care costs based on the means test. You might get a personal budget to manage your care or have the council arrange and pay providers directly https://www.nhs.uk/conditions/social-care-and-support-guide/money-work-and-benefits/when-the-council-might-pay-for-your-care/.
4. NHS Funding: If your primary needs are health-based, the NHS might fully fund your care under NHS continuing healthcare (NHS CHC). The council must refer you for assessment if it seems applicable https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-homecare/ In our experience this is very, very difficult to get.
5. Self-Funding: You can arrange and pay for care privately without involving the council. This option gives you more control but requires significant financial resources https://www.nhs.uk/conditions/social-care-and-support-guide/money-work-and-benefits/paying-for-your-own-care-self-funding/.
6. Benefits: Explore benefits like Attendance Allowance or Personal Independence Payment (PIP) that can help with care costs, irrespective of your means https://www.nhs.uk/conditions/social-care-and-support-guide/money-work-and-benefits/paying-for-your-own-care-self-funding/. or  https://www.grey-matters-consultancy.com/services/attendance-allowance/
7. Planning Ahead: Consider care costs in your long-term financial planning. Saving or purchasing care insurance can ease the burden when care is needed https://www.which.co.uk/money/insurance/health-insurance.
8. Seek Advice: Talk to your local council, Age UK, or Citizens Advice for personalized guidance on your care options and financial support https://www.ageuk.org.uk/, https://www.citizensadvice.org.uk/.
9. Understand Care Costs: Research care fees in your area to get a realistic idea of the financial commitment involved.
10. Equity release is an option to pay for care whilst you are still living in your home if you are asset rich but cash poor. https://www.moneyhelper.org.uk/en/homes/buying-a-home/what-is-equity-release?source=mas#equity-release-options                   A financial assessment, also known as a means test, is part of the process of determining how much you will need to pay for care in the UK. Here's a breakdown of what it means:

    Purpose:

    • Local councils use it to assess your ability to contribute towards your care costs.

    What they look at:

    • Income: This includes your pensions, benefits, and any earnings from work.
    • Capital: This refers to your savings and investments, any land or property (including overseas property), and business assets.

    How it works:

    • There are two main thresholds for capital:
      • Upper Capital Limit: Currently £23,250 (rising to £100,000 in October 2025....). If your capital is below this, the council will likely contribute more to your care.
      • Lower Capital Limit: Currently £14,250 (England only). If your capital falls between these limits, the council will consider it to generate income (called the 'tariff income') and factor that into your contribution.
    • Exemptions: Some income and assets are disregarded, such as your home (if receiving care at home) and some earnings.

    Outcome:

    • Based on your income and capital, the council determines how much you need to contribute to your care.
    • There are different scenarios:
      • Council pays most/all: If you have limited resources, the council might cover most or all of your care costs.
      • Shared contribution: You might pay a portion, and the council covers the rest.
      • Self-funding: If you have significant assets, you might need to fund your care entirely.

    Additional points:

    • The financial assessment is free.
    • You don't need to request it yourself; the council will conduct it after your needs assessment.
    • It's crucial to understand the financial assessment process as it can significantly affect your care costs.