Most people find out how care is paid for at the worst possible moment, usually a few days after something has gone wrong. It is worth understanding the shape of it before then, because the order you do things in changes what you get.
Ask for a needs assessment first
Your council has to assess anyone who appears to need care, whatever their savings. It is free, and nobody is going to ask about money at this stage. The assessment decides what care you need, and only then does a separate financial assessment decide who pays for it.
People skip this because they assume they have too much money to qualify. That is the wrong way round. The assessment is also what gets you a care plan, access to equipment, and a route to direct payments, none of which depend on the council paying the bill.
Ring your council’s adult social care team and ask for a care needs assessment. You do not need a doctor to refer you, and you can ask on someone else’s behalf.
Then the money
If the council does get involved, what you pay depends on your capital: savings, investments and in some cases property. In England for 2026-27 the thresholds are:
| Your capital | What happens |
|---|---|
| Above £23,250 | You pay the full cost yourself |
| £14,250 to £23,250 | You contribute from capital as well as income |
| Below £14,250 | You contribute from income only |
Figures from the Department of Health and Social Care charging circular for 2026-27. Check the current circular, as these are reviewed every April.
Two things people get wrong here. The value of your home is not counted when the care is at home, only for a permanent care home move. And the council has to leave you enough income to live on, which is a protected minimum, not a courtesy.
If you are in Scotland, most of that does not apply
Personal care at home is free in Scotland. Where the council’s care needs assessment says you need help with washing, dressing, using the toilet, eating, medication or moving around, the council does not charge for it, whatever your age, income or savings. Nursing care from the NHS at home is free as well.
What the council can still charge for is the help that is not personal care: housework, shopping, changing beds. Those rates are set council by council and follow a financial assessment.
From mygov.scot on personal and nursing care costs, last updated by the Scottish Government on 10 June 2026. The weekly rates on that page are for care homes rather than care at home.
Benefits, which do not depend on savings
Attendance Allowance is the big one and it is badly under-claimed. It is not means tested at all: savings and income make no difference. It is paid at £76.70 or £114.60 a week depending on how much help you need, and claiming it can also increase Pension Credit, Housing Benefit or Council Tax Reduction.
How to claim Attendance Allowance
If the person needing care is under State Pension age, Personal Independence Payment does the same job. If someone spends 35 hours a week or more caring for them, Carer’s Allowance may apply to the carer, though it interacts with other benefits and is worth checking before claiming.
Direct payments
If the council agrees to fund some or all of your care, you can usually take the money as a direct payment and arrange the care yourself rather than accepting whichever agency the council has a contract with. That is how you get a choice of agency.
Not every agency accepts direct payments, which is worth checking before you get attached to one. It is one of the things we ask providers to state on their listing.
NHS continuing healthcare
Where someone’s needs are primarily health rather than social, the NHS pays the whole cost with no means test at all. The assessment is notoriously hard to get through and it is very often not offered. If the person has complex, intense or unpredictable health needs, ask about it explicitly and ask for the decision in writing.
What it actually costs
The Homecare Association puts the minimum sustainable rate at £34.42 an hour for 2026-27. An hour a day at that rate is roughly £225 a week.
What home care costs, with the package maths
Where to get help with this
- Your council’s adult social care team, for the assessment and anything about funding
- Age UK’s free advice line, which will go through benefits entitlement with you
- Citizens Advice, for benefit claims and appeals
- An independent financial adviser accredited for later-life advice, if you are self-funding a large package