Funding

Understanding Home Care and Local Authority Funding

Home care, or domiciliary care, allows individuals to receive the support they need while staying in the comfort of their own homes. Though a preferred alternative to residential care, it does come at a cost. Fortunately, local authority funding is available to help make home care accessible for everyone, regardless of budget.

Assessments: What to Expect

Before receiving home care, two assessments are required:

  1. Needs Assessment
    A care professional (e.g., nurse or social worker) will evaluate your daily life, challenges, and care requirements—both current and future. This helps identify the support you need, such as personal care or assistance with daily tasks.
  2. Financial Assessment
    Also known as a means test, this will determine how much you’ll need to contribute towards your care, based on your income, savings, and assets (excluding the value of your home if you continue living there).

Capital Limits: How Much Will You Pay?

Each country in the UK has capital limits that determine what you’ll pay for home care. The general rule is that the more money you have, the more you’ll contribute. Here are the capital limits:

 

Country Higher Limit Lower Limit
England £23,250 £14,250
Scotland £32,750 £20,250
Wales £50,000 NA
Northern Ireland £23,250 £14,250

 

For example, in Wales, you’ll only pay if your capital exceeds £50,000, and even then, the maximum is £100 per week, with the local authority covering additional costs.

Future Changes: The 2025 Care Cap

In England, upcoming changes will introduce a lifetime cap on care costs and increase capital limits, making care more affordable for many.

Personal Budgets & Direct Payments

If eligible for support, you’ll receive a personal budget—a specific amount your council contributes to your care needs. This can be managed in several ways:

  • Paid directly to you or a trusted individual (known as direct payments).
  • Managed by a third party.
  • Arranged and paid for by the local council.

Your personal budget must be spent on approved care services, and you may need to provide evidence of how it’s used.

Home Adaptations

To help you continue living safely at home, your local council may also offer an assessment for home adaptations, ranging from minor changes like installing handrails to larger modifications like widening doorways. These adaptations are designed to make daily life easier and complement your home care services.