Looking for care for yourself or a loved one can be overwhelming, and one of the biggest concerns is how to pay for it. Care can be expensive, and many people worry about whether they can afford it, if they’re eligible for financial help, and what happens if their money runs out.
How Much Does Care Cost?
The cost of care in the UK varies depending on the type of support needed and where you live. Here’s a general idea of what you might expect to pay:
Residential care home: Around £1,000–£1,500+ per week
Nursing home (for those needing medical care): £1,000–£2,000+ per week
Home care (visiting carers): £25–£40 per hour
Live-in care: £800–£1,500 per week
These are rough estimates, and prices can be higher in areas like London and the South East. Specialist care (such as dementia care) also tends to cost more.
Can the Local Authority Help Pay for Care?
If you or your loved one needs care but can’t afford to pay for it, you may qualify for Local Authority (council) funding. However, the amount of help you get depends on your financial situation.
The Local Authority means test looks at (stating as of Jan 2025):
Savings and assets: If you have more than £23,250 in savings (England) or £50,000 (Wales), you won’t qualify for financial help. In Scotland, personal care is free for over-65s, but other care costs are still means-tested.
Your income: This includes pensions and benefits.
Property: If you own your home, it might be included in the assessment unless your spouse or a dependent is still living there.
What Happens if Your Money Runs Out?
Running out of money is a big worry for many people, but there are options. If your savings fall below £23,250, you can request a reassessment from your local council. They may start covering some or all of your care costs.
Councils will do this via means test and assess the amount of care you need and allocate funding. This funding can be paid straight to the provider if they are already on their framework of funded care or to you via Direct Payments so you can choose the provider you would like to provide your care. Sometimes providers may be more expensive than your allocated budget or you may want additional care to your needs assessment. If this is the case you may need a top-up payment from yourself or your family member.
If your loved one has a severe or complex medical condition, they may qualify for NHS Continuing Healthcare, which covers full care costs regardless of savings. This is not means-tested but is based on medical needs and end-of-life requirements.
Options like equity release or deferred payment schemes mean you may be able to use your homes value to help pay for care. This means the council pays your care costs, and the money is repaid when the house is sold.
Some charities, like Age UK and Turn2Us, offer financial help for care costs. If you’re a veteran, you may also get support from organisations like The Royal British Legion.
Planning Ahead is Key
Care costs can be high, but there are options for financial support. The key is to plan ahead and understand what help is available.
Quick Tips:
Check if you qualify for local authority funding before your savings get too low.
Look into NHS Continuing Healthcare if there’s a medical need.
Consider alternative care options, like home care, if residential care is too expensive.
Speak to a financial advisor about equity release or care planning.
If you’re unsure where to start, your local council, Age UK, or Citizens Advice can offer free guidance. You’re not alone, help is available!