Choosing a care home is a big decision and figuring out how to pay for it can feel overwhelming, but you don’t have to navigate it alone. Here’s a clear, straightforward guide to the main ways care home costs can be funded in the UK.
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Self-Funding
If you have more than the asset threshold, you may need to pay for your care yourself. But there are still ways to manage the cost:
- Deferred payment agreements – lets the local council cover your care costs now, using your home as security. The fees are then paid back later, usually when the house is sold or from your estate.
- Equity release – allows homeowners to access some of the money tied up in their property without having to sell it and move.
- Benefits – check if you qualify for Attendance Allowance, for people over 65 who need regular help with personal care or supervision, or Personal Independence Payment, for those under 65 with long-term illness or disability, for extra help.
Learn more about disability benefits here
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Local Authority Funding
If your savings and assets are below a certain amount, your local council may help pay for your care. The first step is to arrange a care needs assessment with your local authority. This looks at what level of care you need and whether you’re eligible for financial support.
Here’s how it works in different parts of the UK:
England
- If you have over £23,250 in assets, you’ll pay your full care costs (self-funder).
- If you have between £14,250–£23,250 in assets, you’ll contribute towards your care costs.
- If you have below £14,250 in assets, the council pays more, and you pay less.
Scotland
- If you have over £35,000 in assets, you pay for your own care.
- If you have below £21,500, you’re eligible for maximum support.
- Personal care is free for those who qualify.
Wales
- If you have below £50,000 in assets, the local authority will fully fund your care.
Northern Ireland
- Same as England — if you have £23,250+ in assets, that means you pay in full. If you have £14,250 or less in assets, that means you’ll get financial support.
Useful links:
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Top-Up Fees
If the council funds part of your care, they’ll pay a set amount. But if you choose a care home that costs more (perhaps for extra facilities or nicer surroundings), you can pay the difference yourself. This is called a top-up fee.
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Attendance Allowance – Extra Help for Over 65s
This benefit is not means-tested (your savings don’t matter). It’s for people over 65 who need daily help due to illness or disability.
- Daytime help only – £72.65/week
- Day & night help – £108.55/week
You don’t need a formal diagnosis — it’s about your care needs.
Find out if you qualify here
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NHS Continuing Healthcare
If you have serious, ongoing health needs, you may be eligible for NHS Continuing Healthcare. It can cover all your care home costs, but the criteria are strict. It’s worth applying if medical care is a major part of your needs.
How We Support You – Crystal Clear Pricing
At our homes, many residents fund their own care, and we make the process simple with our easy financial questionnaire. We can also:
- Ensure you can stay even if your personal funds run out.
- Help with top-up arrangements.
- Support you if you’re selling your home to cover costs.
Sorting out care home funding can feel daunting, but with the right information, it becomes much easier. Start with a care needs assessment, explore all your funding options, and remember – whatever your funding routes, we’re here to guide you every step of the way.
Call our friendly Crystal Care Collection team today on 0330 401 0014, email [email protected] or request a callback to find out more.