Funding Options, Costs & Planning Guide
Cost is a major concern for families considering home care. The good news: there are multiple funding options, and many families find ways to afford quality care they can afford.
This guide explains your options, helps you understand costs, and walks you through financial planning for home care.
Basic companionship/light support: £18-22/hour
Personal care (bathing, dressing): £22-28/hour
Specialized care (dementia, post-surgery): £25-35/hour
Rates vary by provider, location, and services included. These are indicative ranges.
Example: 4 hours/week at £24/hour = £96/week = £5,120/year (approximately)
But cost depends on:
Best for: Families with sufficient savings or pension income to sustain care costs. Those who need flexibility or want to start immediately.
How it works:
Eligibility: Generally, local authorities fund care for people assessed as having substantial social care needs. This typically involves assessment by a social worker.
Cost to you: Depends on your savings and income. Those with assets under £23,250 may get more support. Asset limits change—check current rules with your council.
Best for: Those with limited savings/income. Those who can wait for assessment. Those open to council-arranged providers.
Who qualifies: People with significant ongoing healthcare needs requiring regular medical input. Examples: post-stroke rehabilitation, dementia with behavioral needs, terminal illness, complex medication management.
How to apply: Ask your GP or hospital team to refer you for a Continuing Healthcare assessment. If rejected, you can appeal (many people win on appeal).
Best for: Anyone with complex health needs post-hospitalization. Worth exploring even if initially rejected—appeals often succeed.
Long-Term Care Insurance: Some people have policies that cover home care costs. Check existing insurance policies.
Payment Protection Insurance (PPI): If held on mortgages or loans, may cover care costs. Check your policies.
Armed Forces Covenant: Veterans may be eligible for additional funding through the Armed Forces Covenant.
Charitable Support: Some charities provide grants for home care (varies by condition or background). Ask your GP about eligibility.
Employee Benefits: Some employers offer elder care support or subsidies. Check your employment benefits or pension provider.
| Funding Option | Cost to You | Speed | Flexibility |
|---|---|---|---|
| Self-Funded | 100% of care costs | Immediate | Very High |
| Council-Funded | £0-50% depending on means test | 4-8 weeks | Medium |
| NHS CHC | £0 (if eligible) | 2-4 weeks (often longer) | Medium |
| Insurance/Other | Varies (potentially £0) | Varies | Varies |
Many families use multiple funding sources:
This flexibility often makes care affordable when single-source funding falls short.
How many hours per week? What type of care? Specialist needs?
Action: Meet with provider for assessment or consult your council.
Contact 2-3 providers. Get written quotes including all costs.
Action: Request detailed pricing breakdown from each provider.
Contact council for assessment AND ask GP about NHS CHC eligibility.
Action: Start council assessment; gather NHS CHC information.
Savings + council funding + NHS CHC = affordable hours?
Action: Create a realistic budget including worst-case scenario (what if council doesn't fund?).
Care needs increase over time. Budget should account for this.
Action: Revisit budget annually. Plan for 3-5 year horizon.
"I have to sell my house to pay for care"
Not always. Council-funded and NHS CHC can eliminate or reduce costs. Personal savings below £23,250 mean more council support.
"I'll never get council funding; I have too much money"
Worth checking. Means-testing considers income, not just savings. Some with significant assets still qualify for partial funding.
"NHS CHC is impossible to get"
Many people are rejected initially but win on appeal. Worth persisting if your loved one has health needs.
"Home care is always more expensive than care homes"
Not true. Home care can be cheaper, especially for a few hours/week. And most people prefer to stay home.
Print this guide and use it as a financial planning checklist. Bring it with you to council meetings and GP appointments.
Questions? Contact Select Home Care Services at [PHONE] — we can discuss funding options and how we work with council and NHS funding.