There are several ways to pay for home care in England. You can fund it yourself, get help from your local council, receive direct payments, claim Attendance Allowance, or qualify for NHS Continuing Healthcare if you have significant health needs. Many families use a combination. The right route depends on your loved one’s needs, income and savings.
This guide explains each option clearly so you know what to ask for and where to start. Rules can change and vary by area, so always confirm details with your council, the NHS or gov.uk.
Funding can feel confusing, but you do not have to work it out alone. Our team can explain which options may apply and what to do next.
| Option | Who It Is For | Means-Tested? |
|---|---|---|
| Self-funding | Anyone who pays privately | No |
| Council funding | People with eligible needs after assessment | Yes |
| Direct payments | People the council funds who want to arrange their own care | Yes |
| Attendance Allowance | Over State Pension age with care needs | No |
| NHS Continuing Healthcare | People with a primary health need | No |
Many families pay for care themselves, either from income, savings or help from relatives. Self-funding gives you the widest choice of provider and the most control over when and how care is delivered.
Even if you plan to self-fund, it is still worth asking your council for a care needs assessment. It is free, it clarifies what support your loved one needs and it can open the door to other help. If you are comparing costs, our home care cost guide shows what to expect.
Your local council has a duty to assess adults who may need care. The first step is a care needs assessment, which looks at what daily tasks your loved one struggles with and what support would help. If their needs are eligible, the council then carries out a financial assessment.
In England, someone with savings above £23,250 is generally expected to pay for their own care in full. Below £14,250, the council usually covers more of the cost, and between the two limits there is a sliding contribution. Your home is generally not counted when care is delivered at home. Mother’s Touch Care works with local authority funded clients as well as private and health service funded clients.
If the council agrees to fund care, you may be able to receive direct payments. This is money paid to you, or someone acting for you, so you can arrange your own care instead of the council doing it for you.
Direct payments give flexibility. You can choose a registered care agency, agree the times of visits and shape the support around your life. The money must be used to meet the needs in the care plan and you may need to keep records of how it is spent. If you would like to use an agency, talk to our care advisors and we can explain how this works in practice.
Attendance Allowance is a benefit for people over State Pension age who need help with personal care or supervision because of an illness or disability. In 2026/27 it pays £76.70 a week at the lower rate and £114.60 a week at the higher rate.
You get the lower rate if you need help during the day or at night. You get the higher rate if you need help both day and night, or if you are terminally ill. It is tax-free, not means-tested, and your savings and income do not affect it. You can spend it on anything, including home care.
You apply through gov.uk or by requesting a form from the DWP. It is worth claiming even if you are self-funding, as it can also lead to extra help such as Pension Credit or Council Tax Reduction. If your loved one is under State Pension age, Personal Independence Payment may be the relevant benefit instead. In Scotland, the equivalent is Pension Age Disability Payment.
Our care managers meet families every week who are working through exactly these questions. Request a consultation and we will talk through your loved one’s needs and the support available.
NHS Continuing Healthcare, often called CHC, is a package of care arranged and funded entirely by the NHS for adults with ongoing, significant health needs. It is for people whose main need is a health need, rather than a social care need. It is not means-tested, so savings and income do not affect eligibility.
The process usually starts with a screening checklist, completed by a health or social care professional. If the checklist suggests you may be eligible, a full assessment follows using a tool that looks at areas such as breathing, mobility, cognition and behaviour. The decision is made by the local integrated care board.
CHC can pay for care at home, including through a personal health budget. For people with a rapidly deteriorating condition or who are nearing the end of life, there is a fast-track pathway. Eligibility is based on the nature, complexity and unpredictability of needs, not on the diagnosis itself. If you disagree with a decision, you have the right to ask for a review.
Many families blend sources. For example, someone may receive Attendance Allowance, use savings to top up council-funded hours and pay privately for extras such as companionship visits.
Because funding rules interact, it helps to ask each source how it affects the others. For example, Attendance Allowance can stop if the council starts paying for care in a care home, and NHS funding can change what social care contributes. A care adviser or independent advice charity can help you check.
Beyond the main options, check whether your loved one qualifies for Council Tax discounts or Pension Credit. You can also start with fewer hours and increase them as needs grow, or share the load between paid carers and family.
If a family member provides unpaid care, they may be entitled to carer support or a carer’s assessment from the council. That recognises their needs too and can lead to practical help.
First, ask your council for a care needs assessment. Second, check eligibility for Attendance Allowance and claim if it applies. Third, ask whether a CHC checklist is appropriate if health needs are significant. Fourth, speak to a provider about what care would look like and what it would cost.
An experienced agency can guide you through all four steps. Mother’s Touch Care offers a no-obligation home care consultation where a care manager visits, discusses your needs and talks through the funding options available.
Mother’s Touch Care is a CQC-listed home care agency based in Barking, London, with a branch in Colchester, Essex. We support private, local authority and health service funded clients, with carers who are background-checked, certified and trained.
Learn more about us, explore our home care services or view our CQC profile. You can call the Barking office on 020 8058 1618 or the Colchester branch on 07799 096076.
Speak to someone who can point you in the right direction. Describe your situation and we will explain which options may apply. Our Barking office is happy to help.
You can self-fund, receive council funding after an assessment, use direct payments, claim Attendance Allowance or qualify for NHS Continuing Healthcare. Many families combine several of these.
Yes. Attendance Allowance is paid to you and you can spend it on anything, including home care. It is not means-tested.
Adults with a primary health need, meaning ongoing, complex or unpredictable health needs, may qualify after a checklist and full assessment. It is not means-tested.
They are money paid by the council so you can arrange your own care, including through a registered agency, after your needs have been assessed.
In England, people with savings above £23,250 are generally expected to pay for their own care. Below that, the council may contribute following a financial assessment.
Yes. You can still request a care needs assessment, and you may still be eligible for Attendance Allowance, which is not means-tested.
Understanding the options is the hardest part, and we are here to help. Mother’s Touch Care will listen, explain what is possible and support you at every stage.
