When you or someone you love needs care at home, one of the first big questions is always the same: How on earth do we pay for it?
The good news is that across the UK there are several ways to fund home care — from local authority support to NHS funding and a range of benefits that many families don’t even realise they’re entitled to. This guide breaks everything down into clear, manageable sections so you can understand your options and make confident decisions.
How Much Does Home Care Cost?
Home care (also called domiciliary care) varies depending on where you live, but the UK average is:
- £26–£38 per hour
For example, two hours of care a day at £30/hour works out at:
- £420 per week
- £1,680 per month
- £20,160 per year
Some providers charge more for weekends or bank holidays, so it’s worth checking.
How Much Does Live‑In Care Cost?
Live‑in care — where a carer lives in the home full‑time — typically costs:
- £900–£1,400 per week
- Complex needs can reach £2,000 per week
If you’re quoted £1,100 per week, that’s roughly:
- £4,730 per month
- £56,760 per year
Live‑in care can be more affordable than many people expect, especially compared to residential care, and it allows people to stay in the place they love most — home.
Do You Have to Pay for Home Care?
This depends on where you live in the UK.
England
You’ll receive:
- A needs assessment (what support you require)
- A financial assessment (what you can afford)
Key points:
- Your home is not included in the means test for home care.
- If you have over £23,250 in savings, you pay the full cost.
- Between £14,250–£23,250, the council contributes part.
- Below £14,250, the council pays, but your income is considered.
If your savings drop close to £23,250, contact the council early — they can step in before funds run out.
NHS Continuing Healthcare (CHC)
If your needs are primarily health‑related, you may qualify for fully funded care, at home or in a care home.
CHC is not means‑tested, but eligibility is strict.
Scotland
Personal and nursing care is free for everyone who is assessed as needing it.
This includes:
- Help with washing, dressing, medication, meals, continence and mobility.
Other types of support may still be chargeable depending on your local authority.
Wales
Wales caps home care charges at:
- £100 per week maximum
Savings under £24,000 are ignored in the means test.
Your home is not counted.
Northern Ireland
Your local Health & Social Care Trust assesses your needs and may provide:
- Home care
- Home adaptations
- Meals at home
- Direct payments
Support varies depending on assessed need.
What Are Direct Payments?
Instead of the council arranging care for you, direct payments allow you to receive the money directly and choose your own care provider.
You can use direct payments to:
- Employ a care worker
- Purchase support or equipment that meets your assessed needs
You cannot use them for everyday living costs like food or bills.
Direct payments do not affect your benefits.
Benefits You May Be Entitled To
Many families miss out on benefits that can significantly reduce care costs. Here are the main ones:
Attendance Allowance (State Pension age+)
For people needing help due to illness or disability.
- £76.70 per week (lower rate)
- £114.60 per week (higher rate)
Not means‑tested.
Personal Independence Payment (PIP) (under State Pension age)
For people needing help with daily living or mobility.
Daily living:
- £76.70 (lower)
- £114.60 (higher)
Mobility:
- £30.30 (lower)
- £80.00 (higher)
Not means‑tested.
Carer’s Allowance
If you care for someone 35+ hours a week:
- £86.45 per week
You must earn under £204/week (after tax/NI).
Pension Credit
For people over State Pension age on a low income.
Guarantee Credit tops income up to:
- £238.00 per week (single)
- £363.25 per week (couples)
Disability Premiums, ESA Support Group, Council Tax Reductions
Depending on your circumstances, you may also qualify for:
- Disability premiums
- Enhanced disability premiums
- Severe disability premiums
- ESA support group payments
- Council Tax reductions (England, Scotland, Wales)
🏡 Funding Care as a Self‑Funder: Lifetime Mortgages & Care Annuities Explained
For families who are self‑funding care, two financial products are becoming increasingly important: lifetime mortgages and care annuities. They’re not right for everyone, but for the right person, they can provide stability, flexibility, and peace of mind.
Lifetime Mortgages: Unlocking Equity to Pay for Care
A lifetime mortgage is a type of equity‑release loan secured against your home. It allows you to access some of the value tied up in your property without having to sell it.
Recent guidance highlights that lifetime mortgages can help people:
- Pay for home care or live‑in care
- Adapt their home to stay safe and independent
- Cover a partner’s care fees
- Access funds gradually as needs increase (via drawdown options)
Key features:
- You retain ownership of your home.
- Interest rolls up and is repaid when the property is sold (usually after death or moving into long‑term care).
- You can choose a lump sum or a drawdown facility so you only release what you need.
- Some products allow voluntary repayments to manage interest.
Who it may suit:
People who want to stay at home, have limited liquid savings, but own a property with significant equity.
Important: A lifetime mortgage is a loan secured against your home, so independent financial advice is essential.
Care Annuities: Guaranteed Income for Life to Cover Care Fees
A care annuity (also called an immediate needs annuity) provides a guaranteed income for life specifically to pay for long‑term care.
These plans are designed to remove the biggest fear self‑funders face: “What if the money runs out?”
According to recent guidance, care annuities:
- Provide a fixed or inflation‑linked monthly payment for life
- Can be used for care at home or in a care home
- Protect against the risk of long stays eroding savings
- Offer peace of mind for families managing unpredictable care costs Legal and General
Saga’s 2025 review notes that care annuities are particularly helpful because care costs are open‑ended and many self‑funders underestimate how long they’ll need support. Saga
Who it may suit:
Someone already needing long‑term care, with enough savings to purchase the annuity upfront, and who wants certainty over future costs.
Final Thoughts
Paying for care at home can feel complicated, but you don’t have to navigate it alone. Understanding the basics — what care costs, what funding is available, and what benefits you can claim — puts you in a much stronger position.
Ready to Explore Your Care Options? We’re Here to Help.
If you’re looking at home care or live‑in care and feeling unsure about the costs, funding routes, or what support you might be entitled to, you don’t have to figure it out alone.
At Promedica24 , we help families every day to:
- Understand the real cost of care
- Check what funding or benefits they may be eligible for
- Compare home care with live‑in care
- Build a plan that keeps loved ones safe, independent and at home
Whether you’re just gathering information or need urgent support, I’m always happy to talk things through — no pressure, no obligation, just clear guidance.
📞 07419111981
📧 [email protected]
