UK Care Funding

Navigating UK Care costs can be daunting. This episode of The Care Guide UK Podcast breaks down the current funding system, explaining means-testing thresholds, local council assessments and NHS Continuing Healthcare. We cut through the confusion to help you protect your assets and access the financial support you are entitled to.

www.thecareguideuk.co.uk

Transcript

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Welcome back to the Care Guide UK. I'm your host Laura and today we're tackling one of the most confusing and often stressful parts of the care journey. Care funding in the UK. If you've ever wondered who pays for what, how financial assessments work, or what support you might be entitled to, this episode will give you the clarity you need. Let's break it down together. What do we mean by care funding? Care funding refers to how care is paid for. Whether that's home care, residential care, equipment or support services. In the UK, funding comes from three main sources the local authority, the NHS, or the individual, also known as self-funding. Understanding which applies to you is the key to navigating the system confidently. If you need a refresher on how the system works overall, you can explore our podcast episode on understanding the UK care system. So what does the NHS pay for? The NHS covers health care, not daily living support. So this includes things like your GP services, your hospital treatment, your district nursing, rehabilitation and palliative care. But there's one major exception. NHS Continuing Health Care CHC. CHC is a package of care fully funded by the NHS for people with significant ongoing health needs. It's hard to qualify for, but incredibly important. So what do local authorities pay for? Local authorities fund social care, which includes home care, residential care, day services, equipment and adaptations. Also carer support. But unlike the NHS, social care is means tested. This means the authority looks at income, savings and assets, including property in some cases. This is called the financial assessment. So how does the financial assessment work? The financial assessment determines how much the person will contribute towards their care. In England, the 2026 thresholds are £23,250. If you have over this amount, you pay the full cost and a cluster's self-funding. If you have £14,250 up to £23,250, then you will pay a contribution. If you have below £14,250, the local authority will pay most costs. Scotland, Wales and Northern Ireland have different roles. So make sure to check your local area. Now, what about the family home? This is one of the biggest worries people have. So the home is not counted if a spouse or partner still lives there, a close relative over 60 lives there, a disabled relative lives there, or a child under 18 lives there. It may be counted if the person moves permanently into residential care and none of the above apply. There are also benefits that can help. Many people miss out on benefits that can significantly reduce care costs. Key benefits include attendance allowance for people over pension age, personal independence payment, also known as PIP, carers allowance, pension credit, and disability living allowance for under sixteens. So what are direct payments? If a local authority is contributing to care, you can choose managed care where the council arranges everything or direct payments, you receive the money and arrange your own care. Direct payments offer more control and flexibility. So what if you're self-funding? If someone pays for their own care, they're known as a self-funder. Even then, you can still request a care needs assessment, ask the council to arrange care on your behalf, access benefits, and get advice on choosing providers. And when savings drop below the threshold, the local authority may start contributing. There are some common misunderstandings. Many people believe the NHS pays for care homes, not usually. This isn't true. You can't get help if you have savings, you can still get assessments and advice, and you must sell your home immediately. This is often incorrect. Clarity is power, and this is what this episode's all about. Carefinding in the UK is complicated, but you don't have to navigate it alone. Understanding the basics, what's free, what's means tested, and what support is available helps you make informed, confident decisions. In our next episode, we'll be looking at how to choose the right care provider, whether that's home care, residential care, or something in between. Thank you for listening to the Careguide UK podcast. Visit www.thecareguideuk.co.uk for guides, tools, and support designed for carers across the UK.