Funding Care at Home: Council, NHS and Self-Funding Explained

Funding care at home can feel overwhelming, especially when you're trying to understand your options at what is often a stressful time for families. The good news is that there are several routes to help cover the cost — and you don't have to navigate them alone. This guide explains the main funding options available in England, in plain, straightforward language.

Understanding Your Care Funding Options

When someone needs support at home, one of the first questions families ask is: who pays for it? The answer depends on your financial situation, your health needs, and the level of care required. There are three main routes: funding through your local council, funding through the NHS, and paying for care yourself (known as self-funding). In some cases, people use a combination of all three.

Local Authority Funding: How Council Care Funding Works

If you think you or a loved one may need care at home, the first step is to contact your local council and request a **care needs assessment**. This is a free assessment that looks at what support a person needs to live safely and independently. Anyone can request one — you do not need to already be in receipt of services.

If the assessment identifies eligible care needs, the council will then carry out a **financial assessment** (sometimes called a means test) to determine how much, if anything, they will contribute towards the cost of care.

In England, if your assets and savings are below a set threshold, the council may contribute towards your care costs. If your capital is above the upper threshold, you will generally be expected to fund your own care — at least initially. The council must still carry out a needs assessment regardless of your finances, and they must tell you what care they consider you need.

It is worth noting that your home is not counted as capital when you are receiving care in your own home — only residential care triggers property-related assessments.

Direct Payments: Taking Control of Your Care

If you are assessed as eligible for council-funded care, you have the right to request a **direct payment** instead of having the council arrange services on your behalf. A direct payment gives you a cash sum to organise and purchase your own care — giving you far more flexibility and choice over who provides your support and when.

Many people use direct payments to choose a trusted local home care provider rather than being assigned one. You manage the payment (often through a prepaid card or dedicated bank account) and keep records of how it is spent. The council will carry out periodic reviews to ensure the funding is being used appropriately.

For families who want more involvement in the day-to-day decisions about their loved one's care, direct payments can be an empowering option.

NHS Continuing Healthcare: Fully Funded Care at Home

NHS Continuing Healthcare (often referred to as NHS CHC) is a package of care, fully funded by the NHS, for people who have a **primary health need**. Unlike social care funding, NHS CHC is not means-tested — it is available regardless of your financial situation if you meet the clinical criteria.

Eligibility is assessed using a detailed framework that considers the nature, complexity, intensity, and unpredictability of a person's health needs. The assessment is carried out by a multidisciplinary team, usually including healthcare professionals who know the person.

If someone qualifies for NHS Continuing Healthcare, the NHS funds the full cost of their care — whether that is care in a care home or, importantly, **care delivered in their own home**.

Many families are unaware that NHS CHC can apply to home-based care. If a person has significant, complex, or unpredictable health needs, it is always worth requesting an assessment. If you believe an eligible person has been wrongly refused NHS CHC, you have the right to request a review.

There is also a related scheme called the **NHS Continuing Healthcare Joint Funding package**, where the NHS and council share costs where both health and social care needs are present. A lower-level version called **NHS-funded Nursing Care** applies specifically to nursing needs in care home settings, but NHS CHC itself can very much apply to home care.

Self-Funding Your Home Care

If your assets and income are above the financial thresholds for council support, you may be expected to pay for your care yourself — at least in the short term. This is known as self-funding.

Self-funders have the same rights as those receiving council-funded care in terms of the quality of support they can expect. You are free to choose any regulated care provider and to arrange as much or as little support as you need.

It is worth exploring all available entitlements even if you are self-funding. For example:

- **Attendance Allowance** is a tax-free benefit from the Department for Work and Pensions available to people aged 65 or over who need help with personal care due to a physical or mental disability. It is not means-tested.

- **Personal Independence Payment (PIP)** is available to working-age adults with a long-term health condition or disability.

These benefits do not cover the full cost of care, but they can make a meaningful contribution and are often unclaimed by people who are entitled to them.

If you are self-funding, you may also wish to speak with an **independent financial adviser** who specialises in care funding. They can help you plan ahead and understand options such as immediate care annuities.

Combining Funding Sources

It is quite common for the cost of home care to be met through a combination of sources. For example, a person might receive a partial council contribution (after their financial assessment), top this up with Attendance Allowance, and pay the remainder themselves. Understanding how these different elements fit together is an important part of planning for care.

We're Here to Help

Navigating care funding is rarely straightforward, and it can feel daunting to know where to begin. At **The Right Home Care Team**, we support families across North East Derbyshire every step of the way — not just with excellent, compassionate care, but with practical guidance on your options.

If you or a loved one are exploring home care for the first time, we would love to have a conversation. We can help you understand the process, connect you with the right assessments, and ensure you receive every bit of support you are entitled to.

**Get in touch with The Right Home Care Team today** to find out how we can help you or your loved one live well at home, with the right care and the right funding in place.