Planning elderly care can feel overwhelming, especially when you are trying to understand what support is available and how much everything costs. In the UK, care funding works a little differently depending on whether someone needs help at home, residential care or nursing care.
The process can also vary across England, Scotland, Wales and Northern Ireland, so knowing where to begin is often the hardest part.
This guide breaks down the main ways elderly care can be funded in the UK, how local authority support works, when the NHS may step in and what private care looks like in comparison. The aim is to help you feel more confident about your options so you can make the decision that is right for you or your loved one.
How elderly care is funded in the UK
In the UK, care can be funded in four main ways:
- Local authority funding
- NHS funded care
- Benefits and financial support
- Privately funded care
Most people end up with a combination of these, particularly if they need support over a longer period of time.
Local authority funding
Local authorities carry out a care needs assessment to decide whether someone qualifies for support. If eligible, the council will then complete a financial assessment to determine whether they will contribute to the cost of care.
You can request a care needs assessment through your local council or visit the guidance available through the UK Government.
How the means test works
For care at home in England:
- If you have savings and assets below £14,250, the local authority may contribute
- Between £14,250 and £23,250, you may pay some costs
- Above £23,250, you usually fund your own care
(The limits differ in Scotland, Wales and Northern Ireland.)
It is worth noting that the value of your home is not included in the means test for care at home.
What local authorities cover
Local authorities typically offer:
- Personal care
- Support with daily tasks
- Short visits from carers
- Equipment and home adaptations
They rarely fund full time live-in care, which is why many families choose to arrange support privately.
NHS funding for elderly care
In certain situations, the NHS will cover care costs. This applies when someone’s needs are primarily health related.
NHS Continuing Healthcare
NHS Continuing Healthcare is a package of care arranged and funded entirely by the NHS Continuing Healthcare for individuals with ongoing, complex health needs. It can fund care at home or in a nursing home.
Eligibility is based on:
- The nature of someone’s condition
- The level of day to day support required
- Whether health needs are the main focus of care
An assessment is required and not everyone will qualify.
NHS funded nursing care
If someone lives in a nursing home and needs nursing support, the NHS may make a contribution directly to the home. This is not the same as full funding but can help reduce costs.
Financial benefits that may help
There are several benefits designed to help older adults with additional care needs. These are not means tested, which means savings and income do not affect eligibility.
Attendance Allowance
Attendance Allowance is for people over State Pension age who need help with personal care or supervision. It can be paid at two different rates depending on how much support is needed.
You can find more information through the Department for Work and Pensions.
Personal Independence Payment (PIP)
For those under State Pension age, PIP may apply instead. Some people continue receiving PIP after retirement age if they qualified before reaching it.
Carer’s Allowance
If someone cares for a loved one for at least 35 hours a week, they may be able to claim Carer’s Allowance, provided they meet the eligibility criteria.
Paying privately for elderly care
Many families choose to arrange private care, particularly when they want more control over the type of support provided. Private funding offers choice, continuity and the reassurance of a consistent carer.
When private funding works best
Private funding is often preferred when someone wants:
- One to one support that local authorities cannot offer
- A personalised routine instead of short timed visits
- To stay at home rather than move into residential care
- Dedicated companionship and help with daily activities
This is where live-in care becomes especially valuable.
Live-in care through Country Cousins
With private live-in care, a carer lives in the home and provides support around the clock.
This means:
- Greater continuity and trust
- Support tailored to the person’s preferences
- Companionship and reassurance day and night
- The ability to stay safely at home for as long as possible
You can read more about how this works through our page on live-in care.
How much does live-in care cost?
Live-in care costs vary depending on the level of support required. For example, someone with dementia or complex needs may need more hands-on assistance than someone who only requires help with daily tasks.
Private care is typically paid:
- Directly by the individual
- Jointly by family members
- Through a power of attorney arrangement
Although families are responsible for covering the costs, many find that live-in care offers greater value compared with residential care, especially when one to one support is a priority.
Combining different funding sources
Many older adults fund their care through a mix of:
- Benefits such as Attendance Allowance
- A contribution from the local authority
- Private income or savings
It is helpful to think of care funding as a layered system rather than relying on one single source. A live-in care arrangement can also be adapted over time as needs change.
Getting help with financial planning
While councils provide assessments and guidance, many families also speak to:
- A financial adviser specialising in later life
- A solicitor managing power of attorney
- Charities such as Age UK who offer free advice
Understanding your options early can prevent stress later on. Planning ahead also makes it easier to choose the type of care that feels right.
Speak to our team today
If you are exploring care options for yourself or a loved one, we are here to help. Country Cousins has been supporting people to live independently at home since 1959, offering elderly care that keeps people safe, comfortable and close to the routines they love.
Call us on 01293 224 706 Monday to Friday, 9 am to 6 pm or contact us through our online enquiry form to find out more about arranging care.
