Paying for Care at Home: How It Works in England

Care at home is paid for either by you, by your local council, or by the NHS, and which applies is decided by a financial assessment and, separately, by your health needs. The starting point in England is that people with capital above the upper limit usually fund their own care.

What often surprises families is that when care is provided in your own home, the value of that home is generally left out of the council's means test, which is different from the position for a permanent move into a care home (NHS, financial assessment, as at July 2026, subject to change). This guide explains the means test, when the NHS pays instead, the benefits that can help, and the rules on giving assets away. It sits alongside our wider estate planning guide. Figures are current as at July 2026 and are subject to change.

Who pays for care at home?

Three sources can pay: you, the local council, or the NHS. The council arranges a needs assessment to decide what care is required, then a financial assessment to decide how much, if anything, it will contribute. Where health needs are the main issue, the NHS may fund care instead through continuing healthcare. Many people fall into a mix, paying something themselves while the council or NHS covers part.

The council means test and capital limits

The financial assessment, often called the means test, looks at your income and capital to work out what you can afford. In England there are two capital limits: an upper limit of £23,250, above which you generally pay the full cost, and a lower limit of £14,250, below which your capital is not counted, though income may still be (gov.uk, charging for care 2026 to 2027, as at July 2026, subject to change).

Source: gov.uk, social care charging 2026 to 2027, as at July 2026 and subject to change. Between the two capital limits, capital is treated as producing a notional income of £1 per week for every £250 (gov.uk, as at July 2026, subject to change).

When the NHS pays: continuing healthcare

Some people with long-term, complex health needs qualify for care that is arranged and funded solely by the NHS, known as NHS continuing healthcare. It is not means-tested, so income and savings are not counted, and it can be provided in your own home as well as in a care home (NHS, continuing healthcare, as at July 2026, subject to change). Eligibility turns on having a primary health need, assessed through a set process, rather than on the amount of care required.

Because the assessment can be involved, and outcomes vary, many people find it worth understanding the criteria before an assessment. Where continuing healthcare applies, the NHS meets the cost of the assessed care, which is why it is often the first funding route worth checking.

Benefits that can help with care at home

Several benefits can help meet the extra costs of needing care, and some are not means-tested. Attendance Allowance is paid to people over State Pension age who need help with personal care, and it is not affected by income or savings (gov.uk, Attendance Allowance, as at July 2026, subject to change). It is paid at two weekly rates depending on the level of help needed.

Source: gov.uk, Attendance Allowance: what you'll get, as at July 2026 and subject to change. Attendance Allowance is not means-tested (gov.uk, as at July 2026, subject to change).

Where the council does contribute, some people take direct payments instead of council-arranged services, receiving money to arrange their own care at home. This can give more control over who provides care and when, within the council's care plan.

Giving assets away to reduce care fees

People sometimes ask whether giving money or property away can limit what they pay for care. The rules on deliberate deprivation of assets mean this rarely works and can backfire. Guidance is clear that spending money or giving property away before a financial assessment may not help, and a council can ask about things you used to own and treat you as still having them (NHS, financial assessment, as at July 2026, subject to change).

Deliberately giving away assets to avoid care fees can be challenged, and if a council decides wealth was reduced on purpose it may refuse help (NHS, as at July 2026, subject to change). This is why later-life planning is better framed around limiting and mitigating the impact of care fees within the rules, not around trying to avoid them. It is one area where it can be worth discussing your position with a qualified professional, such as a solicitor or a specialist financial adviser, before doing anything.

• Deprivation rules. Giving assets away shortly before an assessment can be treated as if you still hold them.
• Timing and intent. Councils can look at when and why assets were reduced.
• Take advice. Many people discuss care-fees planning with a qualified professional rather than acting alone.

Paying for care at home in Scotland and Northern Ireland

This guide describes England. The other UK nations differ. Scotland provides personal and nursing care that is free at the point of use for those assessed as needing it, subject to its own rules, and uses different capital thresholds. Wales and Northern Ireland each set their own charging arrangements and limits. NHS continuing healthcare and Attendance Allowance operate across the UK, but the social care charging figures quoted here are for England, so where you live matters. It can be worth checking the position for your nation before acting.

Frequently asked questions